Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (only applicable for Spire Inc.):

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such report) and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether each registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether ~~the~~each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if ~~the~~each registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

The number of shares outstanding of each registrant’s common stock as of ~~April 30, 2021,~~May 1, 2022, was as follows:

Spire Missouri Inc. and Spire Alabama Inc. meet the conditions set forth in General Instructions H(1)(a) and (b) to Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instructions H(2) to Form 10-Q.

This combined Form 10-Q represents separate filings by Spire Inc., Spire Missouri Inc., and Spire Alabama Inc. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants, except that information relating to Spire Missouri Inc. and Spire Alabama Inc. are also attributed to Spire Inc.

The interim financial statements included herein have been prepared by three separate registrants — Spire Inc. (“Spire” or the “Company”), Spire Missouri Inc. (“Spire Missouri”) and Spire Alabama Inc. (“Spire Alabama”) — without audit, pursuant to the rules and regulations of the United States Securities and Exchange ~~Commission.~~Commission (SEC). These financial statements should be read in conjunction with the financial statements and the notes thereto included in the registrants’ combined Form 10-K for the fiscal year ended September 30, ~~2020.~~2021.

The Financial Information in this Part I includes separate financial statements (i.e., statements of income and comprehensive income, balance sheets, statements of shareholders’ equity and statements of cash flows) for Spire, Spire Missouri and Spire Alabama. The Notes to Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations are also included and presented herein on a combined basis for Spire, Spire Missouri and Spire Alabama.

	Three Months Ended March 31,					Six Months Ended March 31,					Three Months Ended March 31,					Six Months Ended March 31,
(In millions, except per share amounts)	2021		2020			2021		2020			2022			2021		2022		2021
Operating Revenues	$	1,104.9	$	715.5		$	1,617.5	$	1,282.4		$	880.9		$	1,104.9	$	1,436.3	$	1,617.5
Operating Expenses:
Natural gas		619.1		297.1			800.3		559.0			392.0			619.1		641.2		800.3
Operation and maintenance		119.0		105.7			230.6		222.3			113.2			119.0		229.6		230.6
Depreciation and amortization		51.5		49.2			102.3		96.7			58.9			51.5		115.8		102.3
Taxes, other than income taxes		57.9		53.0			94.0		91.6			71.6			57.9		109.2		94.0
Total Operating Expenses		847.5		505.0			1,227.2		969.6			635.7			847.5		1,095.8		1,227.2
Operating Income		257.4		210.5			390.3		312.8			245.2			257.4		340.5		390.3
Interest Expense, Net		25.8		27.2			51.5		53.9			27.5			25.8		56.1		51.5
Other Income (Expense), Net		1.8		(19.5	)		6.1		(13.8	)
Other (Expense) Income, Net												(3.4	)		1.8		4.0		6.1
Income Before Income Taxes		233.4		163.8			344.9		245.1			214.3			233.4		288.4		344.9
Income Tax Expense		46.0		30.2			68.6		44.5			40.7			46.0		59.1		68.6
Net Income		187.4		133.6			276.3		200.6			173.6			187.4		229.3		276.3
Provision for preferred dividends		3.7		3.7			7.4		7.4			3.7			3.7		7.4		7.4
Income allocated to participating securities		0.3		0.2			0.4		0.3			0.2			0.3		0.3		0.4
Net Income Available to Common Shareholders	$	183.4	$	129.7		$	268.5	$	192.9		$	169.7		$	183.4	$	221.6	$	268.5

Weighted Average Number of Common Shares Outstanding:
Basic		51.6		51.0			51.6		51.0			51.8			51.6		51.7		51.6
Diluted		51.7		51.1			51.7		51.1			51.9			51.7		51.8		51.7
Basic Earnings Per Common Share	$	3.56	$	2.55		$	5.21	$	3.78		$	3.27		$	3.56	$	4.28	$	5.21
Diluted Earnings Per Common Share	$	3.55	$	2.54		$	5.20	$	3.77		$	3.27		$	3.55	$	4.28	$	5.20

	Three Months Ended March 31,						Six Months Ended March 31,						Three Months Ended March 31,						Six Months Ended March 31,
(In millions)	2021			2020			2021			2020			2022			2021			2022			2021
Net Income	$	187.4		$	133.6		$	276.3		$	200.6		$	173.6		$	187.4		$	229.3		$	276.3
Other Comprehensive Income, Before Tax:
Cash flow hedging derivative instruments:
Net hedging gain (loss) arising during the period		43.5			(41.1	)		60.7			(22.2	)
Net hedging gain arising during the period														18.7			43.5			13.9			60.7
Amounts reclassified into net income		(0.4	)		(2.2	)		(0.7	)		(2.5	)		(0.4	)		(0.4	)		(0.7	)		(0.7	)
Net gain (loss) on cash flow hedging derivative instruments		43.1			(43.3	)		60.0			(24.7	)
Net gain (loss) on defined benefit pension and other postretirement plans		0.2			(0.1	)		0.2			(0.1	)
Net gain on cash flow hedging derivative instruments														18.3			43.1			13.2			60.0
Net gain on defined benefit pension and other postretirement plans														0.1			0.2			0.2			0.2
Net unrealized loss on available for sale securities		(0.1	)		—			(0.1	)		—			(0.1	)		(0.1	)		(0.2	)		(0.1	)
Other Comprehensive Income (Loss), Before Tax		43.2			(43.4	)		60.1			(24.8	)
Income Tax Expense (Benefit) Related to Items of Other Comprehensive Income		9.8			(9.7	)		13.6			(5.5	)
Other Comprehensive Income (Loss), Net of Tax		33.4			(33.7	)		46.5			(19.3	)
Other Comprehensive Income, Before Tax														18.3			43.2			13.2			60.1
Income Tax Expense Related to Items of Other Comprehensive Income														4.3			9.8			3.1			13.6
Other Comprehensive Income, Net of Tax														14.0			33.4			10.1			46.5
Comprehensive Income	$	220.8		$	99.9		$	322.8		$	181.3		$	187.6		$	220.8		$	239.4		$	322.8

	March 31,			September 30,			March 31,			March 31,			September 30,			March 31,
(Dollars in millions, except per share amounts)	2021			2020			2020			2022			2021			2021
ASSETS
Utility Plant	$	6,974.3		$	6,766.3		$	6,369.4		$	7,443.7		$	7,225.0		$	6,974.3
Less: Accumulated depreciation and amortization		2,145.1			2,086.2			1,848.4			2,241.9			2,169.3			2,145.1
Net Utility Plant		4,829.2			4,680.1			4,521.0			5,201.8			5,055.7			4,829.2
Non-utility Property (net of accumulated depreciation and amortization of $25.4, $19.0 and $17.5 at March 31, 2021, September 30, 2020, and March 31, 2020, respectively)		457.0			432.3			547.4
Non-utility Property (net of accumulated depreciation and amortization of $41.3, $32.1 and $25.4 at March 31, 2022, September 30, 2021, and March 31, 2021, respectively)											475.8			471.1			457.0
Other Investments		76.4			71.7			68.1			89.0			83.1			76.4
Total Other Property and Investments		533.4			504.0			615.5			564.8			554.2			533.4
Current Assets:
Cash and cash equivalents		104.0			4.1			108.4			8.3			4.3			104.0
Accounts receivable:
Utility		447.7			131.8			248.2			389.2			338.4			447.7
Other		182.3			146.4			132.8			245.4			288.2			182.3
Allowance for credit losses		(34.4	)		(24.9	)		(28.0	)		(35.1	)		(30.3	)		(34.4	)
Delayed customer billings		20.7			10.0			16.9			54.7			9.2			20.7
Inventories:
Natural gas		143.0			154.3			90.3			125.0			267.7			143.0
Propane gas		8.7			10.7			10.7			8.6			8.7			8.7
Materials and supplies		28.3			26.5			26.1			34.7			28.6			28.3
Regulatory assets		60.4			69.5			68.0			164.0			306.5			60.4
Prepayments		29.4			29.2			27.9			26.6			29.0			29.4
Other		49.9			33.0			17.5			67.9			66.2			49.9
Total Current Assets		1,040.0			590.6			718.8			1,089.3			1,316.5			1,040.0
Deferred Charges and Other Assets:
Goodwill		1,171.6			1,171.6			1,171.6			1,171.6			1,171.6			1,171.6
Regulatory assets		1,133.6			1,069.4			770.7			1,106.8			993.5			1,133.6
Other		229.0			225.5			220.4			267.0			264.9			229.0
Total Deferred Charges and Other Assets		2,534.2			2,466.5			2,162.7			2,545.4			2,430.0			2,534.2
Total Assets	$	8,936.8		$	8,241.2		$	8,018.0		$	9,401.3		$	9,356.4		$	8,936.8

	March 31,		September 30,			March 31,			March 31,		September 30,		March 31,
	2021		2020			2020			2022		2021		2021
CAPITALIZATION AND LIABILITIES
Capitalization:
Preferred stock ($25.00 par value per share; 10.0 million depositary shares authorized, issued and outstanding at March 31, 2021, September 30, 2020, and March 31, 2020)	$	242.0	$	242.0		$	242.0
Common stock (par value $1.00 per share; 70.0 million shares authorized; 51.7 million, 51.6 million, and 51.2 million shares issued and outstanding at March 31, 2021, September 30, 2020, and March 31, 2020, respectively)		51.7		51.6			51.2
Preferred stock ($25.00 par value per share; 10.0 million depositary shares authorized, issued and outstanding at March 31, 2022, September 30, 2021, and March 31, 2021)									$	242.0	$	242.0	$	242.0
Common stock (par value $1.00 per share; 70.0 million shares authorized; 52.1 million shares issued and outstanding at March 31, 2022, 51.7 million shares issued and outstanding at September 30, 2021 and March 31, 2021, respectively)										52.1		51.7		51.7
Paid-in capital		1,512.2		1,549.2			1,520.7			1,541.1		1,517.9		1,512.2
Retained earnings		920.1		720.7			902.3			992.3		843.0		920.1
Accumulated other comprehensive gain (loss)		5.3		(41.2	)		(50.6	)
Accumulated other comprehensive income										13.7		3.6		5.3
Total Shareholders' Equity		2,731.3		2,522.3			2,665.6			2,841.2		2,658.2		2,731.3
Temporary equity		8.2		3.4			3.9			11.8		9.8		8.2
Long-term debt (less current portion)		2,692.5		2,423.7			2,484.8			3,207.3		2,939.1		2,692.5
Total Capitalization		5,432.0		4,949.4			5,154.3			6,060.3		5,607.1		5,432.0
Current Liabilities:
Current portion of long-term debt		110.8		60.4			5.4			31.2		55.8		110.8
Notes payable		653.5		648.0			560.6			607.1		672.0		653.5
Accounts payable		352.1		243.3			221.4			367.5		409.9		352.1
Advance customer billings		11.4		45.3			11.6			6.3		32.1		11.4
Wages and compensation accrued		43.5		46.3			34.0			39.3		59.5		43.5
Customer deposits		29.9		30.6			35.9			29.4		28.9		29.9
Taxes accrued		60.0		71.4			55.1			67.4		78.8		60.0
Regulatory liabilities		56.3		113.0			31.8			3.2		34.6		56.3
Other		190.0		190.9			196.7			244.4		236.7		190.0
Total Current Liabilities		1,507.5		1,449.2			1,152.5			1,395.8		1,608.3		1,507.5
Deferred Credits and Other Liabilities:
Deferred income taxes		602.8		511.4			498.1			666.5		612.3		602.8
Pension and postretirement benefit costs		274.4		309.0			272.1			199.2		235.9		274.4
Asset retirement obligations		551.0		540.1			344.7			530.1		519.6		551.0
Regulatory liabilities		423.5		343.7			472.3			400.4		620.9		423.5
Other		145.6		138.4			124.0			149.0		152.3		145.6
Total Deferred Credits and Other Liabilities		1,997.3		1,842.6			1,711.2			1,945.2		2,141.0		1,997.3
Commitments and Contingencies (Note 10)
Total Capitalization and Liabilities	$	8,936.8	$	8,241.2		$	8,018.0		$	9,401.3	$	9,356.4	$	8,936.8

	Common Stock					Preferred		Paid-in			Retained									Common Stock					Preferred		Paid-in			Retained
(Dollars in millions)	Shares			Par		Stock		Capital			Earnings			AOCI*			Total			Shares			Par		Stock		Capital			Earnings			AOCI*			Total
Three Months Ended March 31, 2021:
Balance at December 31, 2020		51,659,473		$	51.7	$	242.0	$	1,550.0		$	771.2		$	(28.1	)	$	2,586.8
Three Months Ended March 31, 2022:
Balance at December 31, 2021																					51,742,481		$	51.7	$	242.0	$	1,516.9		$	859.5		$	(0.3	)	$	2,669.8
Net income		—			—		—		—			187.4			—			187.4			—			—		—		—			173.6			—			173.6
Common stock issued																					354,000			0.3		—		22.8			—			—			23.1
Dividend reinvestment plan		5,847			—		—		0.3			—			—			0.3			7,036			—		—		0.4			—			—			0.4
Stock-based compensation costs		—			—		—		2.0			—			—			2.0			—			—		—		1.1			—			—			1.1
Stock issued under stock-based compensation plans		9,249			—		—		—			—			—			—			13,452			0.1		—		(0.1	)		—			—			—
Employees’ tax withholding for stock-based compensation		(313	)		—		—		—			—			—			—			(302	)		—		—		—			—			—			—
Equity units issued		—			—		—		(40.1	)		—			—			(40.1	)
Temporary equity adjustment to redemption value		—			—		—		—			(1.2	)		—			(1.2	)		—			—		—		—			(1.3	)		—			(1.3	)
Dividends declared:
Common stock ($0.65 per share)		—			—		—		—			(33.6	)		—			(33.6	)
Common stock ($0.685 per share)																					—			—		—		—			(35.8	)		—			(35.8	)
Preferred stock ($0.36875 per depositary share)		—			—		—		—			(3.7	)		—			(3.7	)		—			—		—		—			(3.7	)		—			(3.7	)
Other comprehensive income, net of tax		—			—		—		—			—			33.4			33.4			—			—		—		—			—			14.0			14.0
Balance at March 31, 2021		51,674,256		$	51.7	$	242.0	$	1,512.2		$	920.1		$	5.3		$	2,731.3
Balance at March 31, 2022																					52,116,667		$	52.1	$	242.0	$	1,541.1		$	992.3		$	13.7		$	2,841.2

Six Months Ended March 31, 2021:
Balance at September 30, 2020		51,611,789		$	51.6	$	242.0	$	1,549.2		$	720.7		$	(41.2	)	$	2,522.3
Six Months Ended March 31, 2022:
Balance at September 30, 2021																					51,684,883		$	51.7	$	242.0	$	1,517.9		$	843.0		$	3.6		$	2,658.2
Net income		—			—		—		—			276.3			—			276.3			��			—		—		—			229.3			—			229.3
Common stock issued																					354,000			0.3		—		22.8			—			—			23.1
Dividend reinvestment plan		12,545			—		—		0.7			—			—			0.7			13,269			—		—		0.8			—			—			0.8
Stock-based compensation costs		—			—		—		3.4			—			—			3.4			—			—		—		1.4			—			—			1.4
Stock issued under stock-based compensation plans		64,410			0.1		—		(0.1	)		—			—			—			91,428			0.1		—		(0.1	)		—			—			—
Employees’ tax withholding for stock-based compensation		(14,488	)		—		—		(0.9	)		—			—			(0.9	)		(26,913	)		—		—		(1.7	)		—			—			(1.7	)
Equity units issued		—			—		—		(40.1	)		—			—			(40.1	)
Temporary equity adjustment to redemption value		—			—		—		—			(2.1	)		—			(2.1	)		—			—		—		—			(1.2	)		—			(1.2	)
Dividends declared:
Common stock ($1.30 per share)		—			—		—		—			(67.4	)		—			(67.4	)
Common stock ($1.37 per share)																					—			—		—		—			(71.4	)		—			(71.4	)
Preferred stock ($0.7375 per depositary share)		—			—		—		—			(7.4	)		—			(7.4	)		—			—		—		—			(7.4	)		—			(7.4	)
Other comprehensive income, net of tax		—			—		—		—			—			46.5			46.5			—			—		—		—			—			10.1			10.1
Balance at March 31, 2021		51,674,256		$	51.7	$	242.0	$	1,512.2		$	920.1		$	5.3		$	2,731.3
Balance at March 31, 2022																					52,116,667		$	52.1	$	242.0	$	1,541.1		$	992.3		$	13.7		$	2,841.2

	Common Stock					Preferred		Paid-in			Retained									Common Stock					Preferred		Paid-in			Retained
	Shares			Par		Stock		Capital			Earnings			AOCI*			Total			Shares			Par		Stock		Capital			Earnings			AOCI*			Total
Three Months Ended March 31, 2020:
Balance at December 31, 2019		51,063,460		$	51.1	$	242.0	$	1,506.7		$	803.1		$	(16.9	)	$	2,586.0
Net income		—			—		—		—			133.6			—			133.6
Common stock issued		112,758			0.1		—		9.4			—			—			9.5
Three Months Ended March 31, 2021:
Balance at December 31, 2020																					51,659,473		$	51.7	$	242.0	$	1,550.0		$	771.2		$	(28.1	)	$	2,586.8
Net Income																					—			—		—		—			187.4			—			187.4
Dividend reinvestment plan		45,119			—		—		3.3			—			—			3.3			5,847			—		—		0.3			—			—			0.3
Stock-based compensation costs		—			—		—		1.5			—			—			1.5			—			—		—		2.0			—			—			2.0
Stock issued under stock-based compensation plans		9,626			—		—		—			—			—			—			9,249			—		—		—			—			—			—
Employees’ tax withholding for stock-based compensation		(1,902	)		—		—		(0.2	)		—			—			(0.2	)		(313	)		—		—		—			—			—			—
Equity units issued																					—			—		—		(40.1	)		—			—			(40.1	)
Temporary equity adjustment to redemption value		—			—		—		—			1.2			—			1.2			—			—		—		—			(1.2	)		—			(1.2	)
Dividends declared:
Common stock ($0.6225 per share)		—			—		—		—			(31.9	)		—			(31.9	)
Common stock ($0.65 per share)																					—			—		—		—			(33.6	)		—			(33.6	)
Preferred stock ($0.36875 per depositary share)		—			—		—		—			(3.7	)		—			(3.7	)		—			—		—		—			(3.7	)		—			(3.7	)
Other comprehensive loss, net of tax		—			—		—		—			—			(33.7	)		(33.7	)
Balance at March 31, 2020		51,229,061		$	51.2	$	242.0	$	1,520.7		$	902.3		$	(50.6	)	$	2,665.6
Other comprehensive income, net of tax																					—			—		—		—			—			33.4			33.4
Balance at March 31, 2021																					51,674,256		$	51.7	$	242.0	$	1,512.2		$	920.1		$	5.3		$	2,731.3

Six Months Ended March 31, 2020:
Balance at September 30, 2019		50,973,515		$	51.0	$	242.0	$	1,505.8		$	775.5		$	(31.3	)	$	2,543.0
Six Months Ended March 31, 2021:
Balance at September 30, 2020																					51,611,789		$	51.6	$	242.0	$	1,549.2		$	720.7		$	(41.2	)	$	2,522.3
Net income		—			—		—		—			200.6			—			200.6			—			—		—		—			276.3			—			276.3
Common stock issued		112,758			0.1		—		9.4			—			—			9.5
Dividend reinvestment plan		73,883			—		—		5.6			—			—			5.6			12,545			—		—		0.7			—			—			0.7
Stock-based compensation costs		—			—		—		3.1			—			—			3.1			—			—		—		3.4			—			—			3.4
Stock issued under stock-based compensation plans		108,752			0.1		—		(0.1	)		—			—			—			64,410			0.1		—		(0.1	)		—			—			—
Employees’ tax withholding for stock-based compensation		(39,847	)		—		—		(3.1	)		—			—			(3.1	)		(14,488	)		—		—		(0.9	)		—			—			(0.9	)
Equity units issued																					—			—		—		(40.1	)		—			—			(40.1	)
Temporary equity adjustment to redemption value		—			—		—		—			1.1			—			1.1			—			—		—		—			(2.1	)		—			(2.1	)
Dividends declared:
Common stock ($1.245 per share)		—			—		—		—			(63.8	)		—			(63.8	)
Preferred stock ($1.10625 per depository share)		—			—		—		—			(11.1	)		—			(11.1	)
Other comprehensive loss, net of tax		—			—		—		—			—			(19.3	)		(19.3	)
Balance at March 31, 2020		51,229,061		$	51.2	$	242.0	$	1,520.7		$	902.3		$	(50.6	)	$	2,665.6
Common stock ($1.30 per share)																					—			—		—		—			(67.4	)		—			(67.4	)
Preferred stock ($0.7375 per depository share)																					—			—		—		—			(7.4	)		—			(7.4	)
Other comprehensive income, net of tax																					—			—		—		—			—			46.5			46.5
Balance at March 31, 2021																					51,674,256		$	51.7	$	242.0	$	1,512.2		$	920.1		$	5.3		$	2,731.3

	Six Months Ended March 31,						Six Months Ended March 31,
(In millions)	2021			2020			2022			2021
Operating Activities:
Net Income	$	276.3		$	200.6		$	229.3		$	276.3
Adjustments to reconcile net income to net cash provided by operating activities:
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		102.3			96.7			115.8			102.3
Deferred income taxes and investment tax credits		68.5			42.8			59.1			68.5
Changes in assets and liabilities:
Accounts receivable		(342.3	)		(64.4	)		(3.4	)		(342.3	)
Inventories		14.0			69.5			136.9			14.0
Regulatory assets and liabilities		(6.7	)		74.7			(230.5	)		(6.7	)
Accounts payable		141.3			(50.5	)		(21.1	)		141.3
Delayed/advance customer billings, net		(44.6	)		(33.6	)		(71.4	)		(44.6	)
Taxes accrued		(11.1	)		(14.1	)		(11.2	)		(11.1	)
Other assets and liabilities		(44.3	)		0.1			(51.4	)		(44.3	)
Other		5.8			(0.1	)		3.0			5.8
Net cash provided by operating activities		159.2			321.7			155.1			159.2
Investing Activities:
Capital expenditures		(303.5	)		(346.1	)		(275.9	)		(303.5	)
Other		(0.8	)		1.5			2.7			(0.8	)
Net cash used in investing activities		(304.3	)		(344.6	)		(273.2	)		(304.3	)
Financing Activities:
Issuance of long-term debt		325.0			510.0			300.0			325.0
Repayment of long-term debt		(5.4	)		(140.0	)		(55.8	)		(5.4	)
Issuance (repayment) of short-term debt, net		5.5			(182.6	)
(Repayment) issuance of short-term debt, net								(64.9	)		5.5
Issuance of common stock		0.7			15.2			24.0			0.7
Dividends paid on common stock		(65.9	)		(63.8	)		(70.1	)		(65.9	)
Dividends paid on preferred stock		(7.4	)		(7.4	)		(7.4	)		(7.4	)
Other		(7.5	)		(5.9	)		(3.8	)		(7.5	)
Net cash provided by financing activities		245.0			125.5			122.0			245.0
Net Increase in Cash, Cash Equivalents, and Restricted Cash		99.9			102.6			3.9			99.9
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		4.1			5.8			11.3			4.1
Cash and Cash Equivalents at End of Period	$	104.0		$	108.4
Cash, Cash Equivalents, and Restricted Cash at End of Period							$	15.2		$	104.0

Supplemental disclosure of cash (paid) received for:
Supplemental disclosure of cash paid for:
Interest, net of amounts capitalized	$	(48.5	)	$	(46.7	)	$	(56.5	)	$	(48.5	)
Income taxes		(1.1	)		(1.7	)		(0.2	)		(1.1	)

	Three Months Ended March 31,					Six Months Ended March 31,					Three Months Ended March 31,					Six Months Ended March 31,
(In millions)	2021		2020			2021		2020			2022			2021		2022		2021
Operating Revenues	$	790.9	$	457.5		$	1,146.4	$	831.5		$	571.2		$	790.9	$	919.1	$	1,146.4
Operating Expenses:
Natural gas		537.4		223.6			699.0		409.4			287.8			537.4		444.1		699.0
Operation and maintenance		62.8		50.8			125.7		116.3			64.3			62.8		130.6		125.7
Depreciation and amortization		31.0		29.3			61.4		58.3			35.9			31.0		70.1		61.4
Taxes, other than income taxes		38.9		36.1			64.0		62.8			53.0			38.9		78.7		64.0
Total Operating Expenses		670.1		339.8			950.1		646.8			441.0			670.1		723.5		950.1
Operating Income		120.8		117.7			196.3		184.7			130.2			120.8		195.6		196.3
Interest Expense, Net		11.7		12.7			23.4		25.9			14.2			11.7		28.7		23.4
Other Income (Expense), Net		0.8		(20.9	)		3.5		(19.9	)
Other (Expense) Income, Net												(2.4	)		0.8		3.5		3.5
Income Before Income Taxes		109.9		84.1			176.4		138.9			113.6			109.9		170.4		176.4
Income Tax Expense		16.8		9.6			26.7		16.4			15.4			16.8		26.9		26.7
Net Income		93.1		74.5			149.7		122.5			98.2			93.1		143.5		149.7
Other Comprehensive Income (Loss), Net of Tax		0.1		(0.2	)		0.2		(0.1	)
Other Comprehensive Income, Net of Tax												0.1			0.1		0.2		0.2
Comprehensive Income	$	93.2	$	74.3		$	149.9	$	122.4		$	98.3		$	93.2	$	143.7	$	149.9

	March 31,			September 30,			March 31,			March 31,			September 30,			March 31,
(Dollars in millions, except per share amounts)	2021			2020			2020			2022			2021			2021
ASSETS
Utility Plant	$	4,089.1		$	3,931.2		$	3,790.8		$	4,416.9		$	4,266.6		$	4,089.1
Less: Accumulated depreciation and amortization		869.9			825.7			795.2			949.2			905.1			869.9
Net Utility Plant		3,219.2			3,105.5			2,995.6			3,467.7			3,361.5			3,219.2
Other Property and Investments		59.4			56.7			53.5			66.9			60.2			59.4
Current Assets:
Cash and cash equivalents		0			0			5.1
Accounts receivable:
Utility		363.9			92.5			169.2			288.6			279.0			363.9
Associated companies		2.8			2.7			3.7			3.6			4.7			2.8
Other		22.2			34.1			22.4			35.3			57.5			22.2
Allowance for credit losses		(26.6	)		(18.1	)		(20.2	)		(27.0	)		(22.6	)		(26.6	)
Delayed customer billings		18.4			2.4			16.9			53.5			2.4			18.4
Inventories:
Natural gas		115.6			95.1			58.5			80.9			176.7			115.6
Propane gas		8.7			10.7			10.7			8.6			8.7			8.7
Materials and supplies		15.8			15.6			15.6			18.6			15.0			15.8
Regulatory assets		37.5			32.1			29.4			112.7			276.3			37.5	��
Prepayments		18.9			20.7			15.9			16.0			19.7			18.9
Other											0			0.1			0
Total Current Assets		577.2			287.8			327.2			590.8			817.5			577.2
Deferred Charges and Other Assets:
Goodwill		210.2			210.2			210.2			210.2			210.2			210.2
Regulatory assets		604.3			548.7			512.1			572.7			483.1			604.3
Other		99.0			96.0			83.4			126.4			125.6			99.0
Total Deferred Charges and Other Assets		913.5			854.9			805.7			909.3			818.9			913.5
Total Assets	$	4,769.3		$	4,304.9		$	4,182.0		$	5,034.7		$	5,058.1		$	4,769.3

	March 31,			September 30,			March 31,			March 31,			September 30,			March 31,
	2021			2020			2020			2022			2021			2021
CAPITALIZATION AND LIABILITIES
Capitalization:
Paid-in capital and common stock (par value $1.00 per share; 50.0 million shares authorized; 24,577 shares issued and outstanding)	$	765.1		$	765.1		$	765.1
Paid-in capital and common stock (par value $1.00 per share; 50.0 million shares authorized; 24,929, 24,577 and 24,577 shares issued and outstanding at March 31, 2022, September 30, 2021 and March 31, 2021, respectively)										$	788.4		$	765.1		$	765.1
Retained earnings		822.6			672.9			676.5			960.5			817.0			822.6
Accumulated other comprehensive loss		(2.7	)		(2.9	)		(2.5	)		(4.0	)		(4.2	)		(2.7	)
Total Shareholder's Equity		1,585.0			1,435.1			1,439.1			1,744.9			1,577.9			1,585.0
Long-term debt		1,092.4			1,092.0			1,098.7			1,637.1			1,338.4			1,092.4
Total Capitalization		2,677.4			2,527.1			2,537.8			3,382.0			2,916.3			2,677.4
Current Liabilities:
Notes payable		250.0			0			185.1			0			250.0			250.0
Notes payable – associated companies		369.4			301.2			39.6			277.2			240.9			369.4
Accounts payable		87.5			66.7			63.8			96.9			89.7			87.5
Accounts payable – associated companies		7.7			9.3			5.2			6.9			10.2			7.7
Advance customer billings		2.1			32.7			5.4			0			19.7			2.1
Wages and compensation accrued		28.0			33.3			24.1			27.1			40.3			28.0
Customer deposits		8.2			9.3			13.2			7.7			8.0			8.2
Taxes accrued		29.4			39.1			26.6			37.4			41.2			29.4
Regulatory liabilities		37.6			103.2			24.3			0			17.1			37.6
Other		43.4			39.9			32.7			49.4			47.4			43.4
Total Current Liabilities		863.3			634.7			420.0			502.6			764.5			863.3
Deferred Credits and Other Liabilities:
Deferred income taxes		470.9			434.7			390.6			498.9			480.0			470.9
Pension and postretirement benefit costs		193.7			217.2			205.0			132.9			159.5			193.7
Asset retirement obligations		156.5			153.4			177.1			146.3			143.4			156.5
Regulatory liabilities		353.5			274.8			400.4			313.7			538.8			353.5
Other		54.0			63.0			51.1			58.3			55.6			54.0
Total Deferred Credits and Other Liabilities		1,228.6			1,143.1			1,224.2			1,150.1			1,377.3			1,228.6
Commitments and Contingencies (Note 10)
Total Capitalization and Liabilities	$	4,769.3		$	4,304.9		$	4,182.0		$	5,034.7		$	5,058.1		$	4,769.3

	Common Stock				Paid-in		Retained									Common Stock				Paid-in		Retained
(Dollars in millions)	Shares		Par		Capital		Earnings			AOCI*			Total			Shares		Par		Capital		Earnings		AOCI*			Total
Three Months Ended March 31, 2022:
Balance at December 31, 2021																	24,577	$	0.1	$	765.0	$	862.3	$	(4.1	)	$	1,623.3
Net income																	—		—		—		98.2		—			98.2
Common stock issued to Spire Inc.																	352		—		23.3		—		—			23.3
Other comprehensive income, net of tax																	—		—		—		—		0.1			0.1
Balance at March 31, 2022																	24,929	$	0.1	$	788.3	$	960.5	$	(4.0	)	$	1,744.9

Six Months Ended March 31, 2022:
Balance at September 30, 2021																	24,577	$	0.1	$	765.0	$	817.0	$	(4.2	)	$	1,577.9
Net income																	—		—		—		143.5		—			143.5
Common stock issued to Spire Inc.																	352		—		23.3		—		—			23.3
Other comprehensive income, net of tax																	—		—		—		—		0.2			0.2
Balance at March 31, 2022																	24,929	$	0.1	$	788.3	$	960.5	$	(4.0	)	$	1,744.9

Three Months Ended March 31, 2021:
Balance at December 31, 2020		24,577	$	0.1	$	765.0	$	729.5		$	(2.8	)	$	1,491.8			24,577	$	0.1	$	765.0	$	729.5	$	(2.8	)	$	1,491.8
Net income		—		—		—		93.1			—			93.1			—		—		—		93.1		—			93.1
Other comprehensive income, net of tax		—		—		—		—			0.1			0.1			—		—		—		—		0.1			0.1
Balance at March 31, 2021		24,577	$	0.1	$	765.0	$	822.6		$	(2.7	)	$	1,585.0			24,577	$	0.1	$	765.0	$	822.6	$	(2.7	)	$	1,585.0

Six Months Ended March 31, 2021:
Balance at September 30, 2020		24,577	$	0.1	$	765.0	$	672.9		$	(2.9	)	$	1,435.1			24,577	$	0.1	$	765.0	$	672.9	$	(2.9	)	$	1,435.1
Net income		—		—		—		149.7			—			149.7			—		—		—		149.7		—			149.7
Other comprehensive income, net of tax		—		—		—		—			0.2			0.2			—		—		—		—		0.2			0.2
Balance at March 31, 2021		24,577	$	0.1	$	765.0	$	822.6		$	(2.7	)	$	1,585.0			24,577	$	0.1	$	765.0	$	822.6	$	(2.7	)	$	1,585.0

Three Months Ended March 31, 2020:
Balance at December 31, 2019		24,577	$	0.1	$	765.0	$	613.3		$	(2.3	)	$	1,376.1
Net income		—		—		—		74.5			—			74.5
Dividends declared		—		—		—		(11.3	)		—			(11.3	)
Other comprehensive loss, net of tax		—		—		—		—			(0.2	)		(0.2	)
Balance at March 31, 2020		24,577	$	0.1	$	765.0	$	676.5		$	(2.5	)	$	1,439.1

Six Months Ended March 31, 2020:
Balance at September 30, 2019		24,577	$	0.1	$	765.0	$	576.6		$	(2.4	)	$	1,339.3
Net income		—		—		—		122.5			—			122.5
Dividends declared		—		—		—		(22.6	)		—			(22.6	)
Other comprehensive loss, net of tax		—		—		—		—			(0.1	)		(0.1	)
Balance at March 31, 2020		24,577	$	0.1	$	765.0	$	676.5		$	(2.5	)	$	1,439.1

	Six Months Ended March 31,						Six Months Ended March 31,
(In millions)	2021			2020			2022			2021
Operating Activities:
Net Income	$	149.7		$	122.5		$	143.5		$	149.7
Adjustments to reconcile net income to net cash provided by operating activities:
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		61.4			58.3			70.1			61.4
Deferred income taxes and investment tax credits		26.7			16.4			26.9			26.7
Changes in assets and liabilities:
Accounts receivable		(251.1	)		(67.6	)		18.2			(251.1	)
Inventories		(18.7	)		39.3			92.4			(18.7	)
Regulatory assets and liabilities		(28.7	)		59.8			(181.3	)		(28.7	)
Accounts payable		32.3			6.8			12.9			32.3
Delayed/advance customer billings, net		(46.5	)		(27.9	)		(70.8	)		(46.5	)
Taxes accrued		(9.7	)		(9.8	)		(3.8	)		(9.7	)
Other assets and liabilities		(50.3	)		(1.9	)		(41.7	)		(50.3	)
Other		0.3			0.3			0.7			0.3
Net cash (used in) provided by operating activities		(134.6	)		196.2
Net cash provided by (used in) operating activities								67.1			(134.6	)
Investing Activities:
Capital expenditures		(184.1	)		(183.2	)		(176.0	)		(184.1	)
Other		0.5			0.3			1.4			0.5
Net cash used in investing activities		(183.6	)		(182.9	)		(174.6	)		(183.6	)
Financing Activities:
Issuance of long-term debt		0			275.0			300.0			0
Repayment of long-term debt		0			(100.0	)
Issuance of short-term debt, net		250.0			185.1
Borrowings from (repayments to) Spire, net		68.2			(346.8	)
Dividends paid		0			(22.6	)
(Repayments) issuance of short-term debt, net								(250.0	)		250.0
Borrowings from Spire, net								36.2			68.2
Issuance of common stock								23.3			0
Other		0			(1.5	)		(2.0	)		0
Net cash provided by (used in) financing activities		318.2			(10.8	)
Net Increase in Cash and Cash Equivalents		0			2.5
Net cash provided by financing activities								107.5			318.2
Net Change in Cash and Cash Equivalents								0			0
Cash and Cash Equivalents at Beginning of Period		0			2.6			0			0
Cash and Cash Equivalents at End of Period	$	0		$	5.1		$	0		$	0

Supplemental disclosure of cash paid for:
Interest, net of amounts capitalized	$	(22.9	)	$	(21.6	)	$	(28.3	)	$	(22.9	)
Income taxes		0			0			0			0

	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended March 31,				Six Months Ended March 31,
(In millions)	2021		2020		2021		2020		2022		2021		2022		2021
Operating Revenues	$	222.6	$	185.5	$	336.2	$	311.7	$	204.1	$	222.6	$	330.7	$	336.2
Operating Expenses:
Natural gas		69.8		39.4		104.9		86.4		52.1		69.8		97.6		104.9
Operation and maintenance		33.7		37.1		66.5		72.3		32.9		33.7		67.4		66.5
Depreciation and amortization		15.2		14.6		30.2		28.9		16.7		15.2		33.2		30.2
Taxes, other than income taxes		14.7		13.2		22.9		22.0		14.5		14.7		23.5		22.9
Total Operating Expenses		133.4		104.3		224.5		209.6		116.2		133.4		221.7		224.5
Operating Income		89.2		81.2		111.7		102.1		87.9		89.2		109.0		111.7
Interest Expense, Net		5.3		5.3		10.0		10.7		4.7		5.3		9.8		10.0
Other Income, Net		0.7		1.2		1.4		3.4		0.1		0.7		0.5		1.4
Income Before Income Taxes		84.6		77.1		103.1		94.8		83.3		84.6		99.7		103.1
Income Tax Expense		21.3		19.3		26.1		23.8		20.9		21.3		25.1		26.1
Net Income	$	63.3	$	57.8	$	77.0	$	71.0	$	62.4	$	63.3	$	74.6	$	77.0

	March 31,			September 30,			March 31,			March 31,			September 30,			March 31,
(Dollars in millions, except per share amounts)	2021			2020			2020			2022			2021			2021
ASSETS
Utility Plant	$	2,523.4		$	2,469.9		$	2,217.0		$	2,643.9		$	2,586.5		$	2,523.4
Less: Accumulated depreciation and amortization		1,136.5			1,117.0			904.7			1,154.0			1,124.8			1,136.5
Net Utility Plant		1,386.9			1,352.9			1,312.3			1,489.9			1,461.7			1,386.9
Current Assets:
Cash and cash equivalents		18.2			0			0.1			0.2			0			18.2
Accounts receivable:
Utility		66.4			31.4			65.6			86.0			49.8			66.4
Associated companies		0.5			0.6			0.1			0.7			0.6			0.5
Other		5.7			5.8			7.8			5.6			6.4			5.7
Allowance for credit losses		(6.5	)		(5.5	)		(6.8	)		(7.1	)		(6.6	)		(6.5	)
Delayed customer billings		2.3			7.5			0			1.2			6.7			2.3
Notes receivable – associated companies		20.0			0			0			0			0			20.0
Inventories:
Natural gas		14.8			22.5			16.3			32.0			35.5			14.8
Materials and supplies		10.0			8.4			8.3			13.1			10.8			10.0
Regulatory assets		11.8			20.4			23.3			41.0			18.8			11.8
Prepayments		4.7			4.3			5.7			3.6			5.4			4.7
Other		0.1			0.2			0.3			0			0			0.1
Total Current Assets		148.0			95.6			120.7			176.3			127.4			148.0
Deferred Charges and Other Assets:
Regulatory assets		501.2			489.9			230.1			506.7			483.3			501.2
Deferred income taxes		33.2			59.3			57.4			9.1			34.2			33.2
Other		53.5			53.7			61.0			63.6			63.9			53.5
Total Deferred Charges and Other Assets		587.9			602.9			348.5			579.4			581.4			587.9
Total Assets	$	2,122.8		$	2,051.4		$	1,781.5		$	2,245.6		$	2,170.5		$	2,122.8

	March 31,		September 30,		March 31,		March 31,		September 30,		March 31,
	2021		2020		2020		2022		2021		2021
CAPITALIZATION AND LIABILITIES
Capitalization:
Paid-in capital and common stock (par value $0.01 per share; 3.0 million shares authorized; 2.0 million shares issued and outstanding)	$	328.9	$	350.9	$	350.9	$	322.9	$	328.9	$	328.9
Retained earnings		566.8		500.8		518.1		611.2		552.6		566.8
Total Shareholder's Equity		895.7		851.7		869.0		934.1		881.5		895.7
Long-term debt (less current portion)		571.1		471.8		471.7		571.4		571.2		571.1
Total Capitalization		1,466.8		1,323.5		1,340.7		1,505.5		1,452.7		1,466.8
Current Liabilities:
Current portion of long-term debt		50.0		0		0		0		50.0		50.0
Notes payable		0		0		50.0
Notes payable – associated companies		0		121.3		33.0		156.6		49.0		0
Accounts payable		37.4		43.7		48.0		50.8		52.3		37.4
Accounts payable – associated companies		8.0		4.2		4.8		6.2		6.0		8.0
Advance customer billings		5.4		11.5		5.3		5.2		11.2		5.4
Wages and compensation accrued		6.4		8.0		5.9		5.6		9.3		6.4
Customer deposits		19.0		18.7		19.9		19.0		18.4		19.0
Taxes accrued		25.1		28.0		23.0		24.3		30.4		25.1
Regulatory liabilities		14.2		3.9		2.4		0		13.4		14.2
Other		14.8		11.8		9.7		12.3		17.3		14.8
Total Current Liabilities		180.3		251.1		202.0		280.0		257.3		180.3
Deferred Credits and Other Liabilities:
Pension and postretirement benefit costs		68.2		74.9		54.6		59.1		66.7		68.2
Asset retirement obligations		381.7		374.3		151.7		370.0		362.8		381.7
Regulatory liabilities		18.0		18.5		21.6		24.7		23.4		18.0
Other		7.8		9.1		10.9		6.3		7.6		7.8
Total Deferred Credits and Other Liabilities		475.7		476.8		238.8		460.1		460.5		475.7
Commitments and Contingencies (Note 10)
Total Capitalization and Liabilities	$	2,122.8	$	2,051.4	$	1,781.5	$	2,245.6	$	2,170.5	$	2,122.8

	Common Stock				Paid-in			Retained						Common Stock				Paid-in			Retained
(Dollars in millions)	Shares		Par		Capital			Earnings			Total			Shares		Par		Capital			Earnings			Total
Three Months Ended March 31, 2022:
Balance at December 31, 2021															1,972,052	$	—	$	322.9		$	556.8		$	879.7
Net income															—		—		—			62.4			62.4
Dividends declared															—		—		—			(8.0	)		(8.0	)
Balance at March 31, 2022															1,972,052	$	—	$	322.9		$	611.2		$	934.1

Six Months Ended March 31, 2022:
Balance at September 30, 2021															1,972,052	$	—	$	328.9		$	552.6		$	881.5
Net income															—		—		—			74.6			74.6
Return of capital to Spire															—		—		(6.0	)		—			(6.0	)
Dividends declared															—		—		—			(16.0	)		(16.0	)
Balance at March 31, 2022															1,972,052	$	—	$	322.9		$	611.2		$	934.1

Three Months Ended March 31, 2021:
Balance at December 31, 2020		1,972,052	$	—	$	339.9		$	509.0		$	848.9			1,972,052	$	—	$	339.9		$	509.0		$	848.9
Net income		—		—		—			63.3			63.3			—		—		—			63.3			63.3
Return of capital to Spire		—		—		(11.0	)		—			(11.0	)		—		—		(11.0	)		—			(11.0	)
Dividends declared		—		—		—			(5.5	)		(5.5	)		—		—		—			(5.5	)		(5.5	)
Balance at March 31, 2021		1,972,052	$	—	$	328.9		$	566.8		$	895.7			1,972,052	$	—	$	328.9		$	566.8		$	895.7

Six Months Ended March 31, 2021:
Balance at September 30, 2020		1,972,052	$	—	$	350.9		$	500.8		$	851.7			1,972,052	$	—	$	350.9		$	500.8		$	851.7
Net income		—		—		—			77.0			77.0			—		—		—			77.0			77.0
Return of capital to Spire		—		—		(22.0	)		—			(22.0	)		—		—		(22.0	)		—			(22.0	)
Dividends declared		—		—		—			(11.0	)		(11.0	)		—		—		—			(11.0	)		(11.0	)
Balance at March 31, 2021		1,972,052	$	—	$	328.9		$	566.8		$	895.7			1,972,052	$	—	$	328.9		$	566.8		$	895.7

Three Months Ended March 31, 2020:
Balance at December 31, 2019		1,972,052	$	—	$	370.9		$	466.3		$	837.2
Net income		—		—		—			57.8			57.8
Return of capital to Spire		—		—		(20.0	)		—			(20.0	)
Dividends declared		—		—		—			(6.0	)		(6.0	)
Balance at March 31, 2020		1,972,052	$	—	$	350.9		$	518.1		$	869.0

Six Months Ended March 31, 2020:
Balance at September 30, 2019		1,972,052	$	—	$	370.9		$	459.1		$	830.0
Net income		—		—		—			71.0			71.0
Return of capital to Spire		—		—		(20.0	)		—			(20.0	)
Dividends declared		—		—		—			(12.0	)		(12.0	)
Balance at March 31, 2020		1,972,052	$	—	$	350.9		$	518.1		$	869.0

	Six Months Ended March 31,						Six Months Ended March 31,
(In millions)	2021			2020			2022			2021
Operating Activities:
Net Income	$	77.0		$	71.0		$	74.6		$	77.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		30.2			28.9			33.2			30.2
Deferred income taxes and investment tax credits		26.1			23.9			25.1			26.1
Changes in assets and liabilities:
Accounts receivable		(33.7	)		(27.9	)		(34.9	)		(33.7	)
Inventories		6.2			18.3			1.3			6.2
Regulatory assets and liabilities		14.6			13.7			(50.7	)		14.6
Accounts payable		9.9			(10.8	)		7.4			9.9
Delayed/advance customer billings		(0.9	)		(5.3	)		(0.6	)		(0.9	)
Taxes accrued		(2.9	)		(4.4	)		(6.1	)		(2.9	)
Other assets and liabilities		(4.6	)		(7.8	)		(14.2	)		(4.6	)
Other		0.1			(2.5	)		(0.1	)		0.1
Net cash provided by operating activities		122.0			97.1			35.0			122.0
Investing Activities:
Capital expenditures		(78.9	)		(75.8	)		(71.0	)		(78.9	)
Lending to Spire, net of repayments		(20.0	)		0			0			(20.0	)
Other		0.3			(3.0	)		0.6			0.3
Net cash used in investing activities		(98.6	)		(78.8	)		(70.4	)		(98.6	)
Financing Activities:
Issuance of long-term debt		150.0			100.0			0			150.0
Repayment of long-term debt		0			(40.0	)		(50.0	)		0
Issuance of short-term debt – net		0			50.0
Repayments of borrowings from Spire, net		(121.3	)		(95.7	)
Borrowings from (repayments to) Spire, net								107.6			(121.3	)
Return of capital to Spire		(22.0	)		(20.0	)		(6.0	)		(22.0	)
Dividends paid		(11.0	)		(12.0	)		(16.0	)		(11.0	)
Other		(0.9	)		(0.5	)		0			(0.9	)
Net cash used in financing activities		(5.2	)		(18.2	)
Net cash provided by (used in) financing activities								35.6			(5.2	)
Net Increase in Cash and Cash Equivalents		18.2			0.1			0.2			18.2
Cash and Cash Equivalents at Beginning of Period		0			0			0			0
Cash and Cash Equivalents at End of Period	$	18.2		$	0.1		$	0.2		$	18.2

Supplemental disclosure of cash paid for:
Interest, net of amounts capitalized	$	(8.4	)	$	(9.5	)	$	(10.1	)	$	(8.4	)
Income taxes		0			0			0			0

BASIS OF PRESENTATION – These notes are an integral part of the accompanying unaudited financial statements of Spire Inc. (“Spire” or the “Company”) presented on a consolidated basis, Spire Missouri Inc. (“Spire Missouri”) and Spire Alabama Inc. (“Spire Alabama”). Spire Missouri, Spire Alabama and Spire ~~Alabama~~EnergySouth Inc. (“Spire EnergySouth”) are wholly owned subsidiaries of Spire. Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth (Spire Gulf Inc. (“and Spire ~~EnergySouth”~~Mississippi Inc.) are collectively referred to as the “Utilities.” ~~The subsidiaries of Spire EnergySouth are Spire Gulf Inc. and Spire Mississippi Inc.~~

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information with the instructions to Form 10-Q and Rule 10-01 of Regulation S‑X. Accordingly, they do not include all the disclosures required for complete financial statements. In the opinion of management, the accompanying unaudited financial statements include all adjustments necessary for the fair presentation of the results of operations for the periods presented. This Form 10-Q should be read in conjunction with the Notes to Financial Statements contained in ~~Spire’s,~~ Spire, ~~Missouri’s~~Spire Missouri and Spire Alabama’s combined Annual Report on Form 10-K for the fiscal year ended September 30, ~~2020.~~2021.

The consolidated financial position, results of operations, and cash flows of Spire include the accounts of the Company and all its subsidiaries. Transactions and balances between consolidated entities have been eliminated from the consolidated financial statements of Spire. In compliance with GAAP, transactions between Spire Missouri and Spire Alabama and their affiliates, as well as intercompany balances on their balance sheets, have not been eliminated from their separate financial statements.

NATURE OF OPERATIONS – Spire has 2 reportable segments: Gas Utility and Gas Marketing. The Gas Utility segment consists of the regulated natural gas distribution operations of the Company and is the core business segment of Spire in terms of revenue and earnings. The Gas Utility segment is comprised of the operations of: Spire Missouri, serving St. Louis, Kansas City, and other areas in Missouri; Spire Alabama, serving central and northern Alabama; and the subsidiaries of Spire EnergySouth, serving ~~southern~~the Mobile, Alabama area and south-central Mississippi. The Gas Marketing segment includes Spire’s largest gas-related business, Spire Marketing Inc. (“Spire Marketing”), which provides non-regulated natural gas services ~~primarily in~~throughout the ~~central and southern~~ United States (U.S.). The activities of the Company’s other subsidiaries are reported as Other and are described in Note 9, Information by Operating Segment. Spire Missouri and Spire Alabama each have a single reportable segment.

Nearly all the Company’s earnings are derived from its Gas Utility segment. Due to the seasonal nature of the Utilities’ business and the Spire Missouri rate design, earnings are typically concentrated during the heating season of November through April each fiscal year. As a result, the interim statements of income for Spire, Spire Missouri and Spire Alabama are not necessarily indicative of annual results or representative of succeeding quarters of the fiscal year.

REGULATED OPERATIONS – The Utilities account for their regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, Regulated Operations. This topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third-party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. In addition, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). Management believes that the current regulatory environment supports the continued use of these regulatory accounting principles and that all regulatory assets and regulatory liabilities are recoverable or refundable through the regulatory process.

As authorized by the Missouri Public Service Commission (MoPSC), the Mississippi Public Service Commission (MSPSC) and the Alabama Public Service Commission (APSC), the Purchased Gas Adjustment (PGA) clauses and Gas Supply Adjustment (GSA) riders allow the Utilities to pass through to customers the cost of purchased gas supplies. Regulatory assets and liabilities related to the PGA clauses and the GSA riders are both labeled Unamortized Purchased Gas Adjustments herein. See additional information about regulatory assets and liabilities in Note 4, Regulatory Matters.

DERIVATIVES – In the course of their business, certain subsidiaries of Spire enter into commitments associated with the purchase or sale of natural gas. Certain of their derivative natural gas contracts are designated as normal purchases or normal sales and, as such, are excluded from the scope of FASB ASC Topic 815, Derivatives and Hedging. Those contracts are accounted for as executory contracts and recorded on an accrual basis. Revenues and expenses from such contracts are recorded gross. Contracts not designated as normal purchases or normal sales are recorded as derivatives with changes in fair value recognized in earnings in the periods prior to physical delivery. Certain of Spire Marketing’s wholesale purchase and sale transactions are classified as trading activities for financial reporting purposes, with income and expenses presented on a net basis in natural gas expenses in the Condensed Consolidated Statements of Income.

TRANSACTIONS WITH AFFILIATES – Transactions between affiliates of the Company have been eliminated from the consolidated financial statements of Spire. As reflected in their separate financial statements, Spire Missouri and Spire Alabama borrowed funds from the Company and incurred related interest and in 2021, Spire Alabama lent excess funds to the Company and earned related interest. Spire Missouri and Spire Alabama also participated in normal intercompany shared services transactions. Spire Missouri’s and Spire Alabama’s other transactions with affiliates are presented below:

	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020		2022		2021		2022		2021
Spire Missouri
Purchases of natural gas from Spire Marketing Inc.	$	57.6	$	13.3	$	68.3	$	32.8	$	17.9	$	57.6	$	36.1	$	68.3
Transportation services received from Spire STL Pipeline LLC		7.9		7.9		16.0		11.8		7.8		7.9		15.9		16.0
Sales of natural gas to Spire Marketing Inc.		—		—		1.1		—		—		—		—		1.1
Transportation services received from Spire NGL Inc.		0.2		0.2		0.5		0.5		—		0.2		—		0.5
Spire Alabama
Purchases of natural gas from Spire Marketing Inc.	$	5.8	$	1.0	$	10.6	$	4.3	$	—	$	5.8	$	—	$	10.6
Sales of natural gas to Spire Marketing Inc.		0.1		—		0.1		—		—		0.1		—		0.1

RESTRICTED CASH – In Spire’s statement of cash flows for the period ended March 31, 2022, total Cash, Cash Equivalents, and Restricted Cash included $6.9 and $7.0 of restricted cash reported in “Other Investments” on the Company’s balance sheet as of March 31, 2022 and September 30, 2021, respectively (in addition to amounts shown as “Cash and cash equivalents”). This restricted cash has been segregated and invested in debt securities in a trust account based on collateral requirements for reinsurance at Spire’s risk management company.

ACCRUED CAPITAL EXPENDITURES – Accrued capital expenditures, shown in the following table, are excluded from capital expenditures in the statements of cash flows until paid.

	March 31,		September 30,		March 31,		March 31,		September 30,		March 31,
	2021		2020		2020		2022		2021		2021
Spire	$	36.1	$	67.6	$	51.4	$	38.8	$	59.5	$	36.1
Spire Missouri		21.8		34.3		21.5		28.7		37.1		21.8
Spire Alabama		4.7		17.0		17.6		5.0		13.6		4.7

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES – Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Accounts receivable are written off when they are deemed to be uncollectible. An allowance for expected credit losses is estimated and updated based on relevant data and trends such as accounts receivable aging, historical write-off experience, current write-off trends, economic conditions, and the impact of weather and availability of customer payment assistance on collection trends. For the Utilities, net write-offs as a percentage of revenue has historically been the best predictor of base net write-off experience over time. Management judgment is applied in the development of the allowance due to the complexity of variables and subjective nature of certain relevant factors. For March 31, 2021, ~~and September 30, 2020,~~ the estimates for expected credit losses were increased as a result of considerations related to the outbreak of the novel coronavirus (COVID-19), including trends from previous economic downturns, the effects of moratoriums on gas service cutoffs, and the effects of slower-than-normal disconnection activity in general, offset by the amount subject to specific recovery under Missouri’s deferral order (see Note 4, Regulatory Matters). The accounts receivable of Spire’s non-utility businesses are evaluated separately from those of the Utilities. The allowance for credit losses for those other businesses is based on a continuous evaluation of the individual counterparty risk and is not significant for the periods presented. Activity in the allowance for credit losses ~~for the three and six months ended March 31, 2021,~~ is shown in the following table.

	Three Months Ended March 31, 2021									Six Months Ended March 31, 2021									Spire						Spire Missouri						Spire Alabama
				Spire			Spire						Spire			Spire
	Spire			Missouri			Alabama			Spire			Missouri			Alabama
Three Months Ended March 31,																			2022			2021			2022			2021			2022			2021
Allowance at beginning of period	$	28.9		$	21.4		$	6.2		$	24.9		$	18.1		$	5.5		$	31.4		$	28.9		$	23.8		$	21.4		$	6.7		$	6.2
Provision for expected credit losses		6.6			5.7			0.6			10.7			9.0			1.3			5.2			6.6			4.7			5.7			0.5			0.6
Write-offs, net of recoveries		(1.1	)		(0.5	)		(0.3	)		(1.2	)		(0.5	)		(0.3	)		(1.5	)		(1.1	)		(1.5	)		(0.5	)		(0.1	)		(0.3	)
Allowance at end of period	$	34.4		$	26.6		$	6.5		$	34.4		$	26.6		$	6.5		$	35.1		$	34.4		$	27.0		$	26.6		$	7.1		$	6.5

Six Months Ended March 31,																			2022			2021			2022			2021			2022			2021
Allowance at beginning of period																			$	30.3		$	24.9		$	22.6		$	18.1		$	6.6		$	5.5
Provision for expected credit losses																				6.7			10.7			6.8			9.0			—			1.3
Write-offs, net of recoveries																				(1.9	)		(1.2	)		(2.4	)		(0.5	)		0.5			(0.3	)
Allowance at end of period																			$	35.1		$	34.4		$	27.0		$	26.6		$	7.1		$	6.5

~~NEW ACCOUNTING PRONOUNCEMENTS~~ ~~– In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13,~~ ~~Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments~~, which was later supplemented by ASU Nos. 2018-19, 2019-04, 2019-05 and 2019-11. The new standard replaces the current “incurred loss” model with an “expected loss” model for certain instruments, including trade receivables, requiring measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. It also required entities to record credit loss allowances for available-for-sale securities rather than impair the carrying amount of the securities. Spire, Spire Missouri and Spire Alabama adopted the new standard for the quarter ended December 31, 2020. Based on the credit quality of the existing available-for-sale securities portfolio, 0 allowance for credit losses was recognized for those investments. Application of the new guidance did not result in any significant modifications to the Company’s policies related to recognizing an allowance on trade receivables, and the adoption of the new standard did not have a material impact on Spire’s, Spire Missouri’s and Spire Alabama’s financial statements.

~~RECLASSIFICATIONS~~ – Spire’s consolidated statements of income historically showed Gas Utility operating revenues and expense line items separately from Gas Marketing and other operations. The current presentation shows operating revenues and expense line items on a consolidated basis. Disaggregated data is presented in ~~Note 9, Information by Operating Segment. Prior period amounts have been reclassified to conform with the current period presentation.~~

	Three Months Ended March 31,						Six Months Ended March 31,						Three Months Ended March 31,						Six Months Ended March 31,
	2021			2020			2021			2020			2022			2021			2022			2021
Spire
Gas Utility:
Residential	$	537.6		$	471.9		$	887.5		$	840.3		$	687.3		$	537.6		$	1,029.3		$	887.5
Commercial & industrial		369.2			156.8			472.2			279.3
Commercial and industrial														85.6			369.2			189.4			472.2
Transportation		34.2			32.5			66.4			63.5			33.5			34.2			64.7			66.4
Off-system & other incentive		130.6			9.3			139.9			18.7
Off-system and other incentive														12.0			130.6			16.8			139.9
Other customer revenue		(11.9	)		3.2			(9.7	)		5.6			6.5			(11.9	)		10.1			(9.7	)
Total revenue from contracts with customers		1,059.7			673.7			1,556.3			1,207.4			824.9			1,059.7			1,310.3			1,556.3
Changes in accrued revenue under alternative revenue programs		(6.6	)		5.3			(5.0	)		2.3			(7.5	)		(6.6	)		10.6			(5.0	)
Total Gas Utility operating revenues		1,053.1			679.0			1,551.3			1,209.7			817.4			1,053.1			1,320.9			1,551.3
Gas Marketing		33.4			33.3			58.2			65.6			59.4			33.4			107.3			58.2
Other		15.6			14.7			32.3			25.8			18.1			15.6			34.7			32.3
Total before eliminations		1,102.1			727.0			1,641.8			1,301.1			894.9			1,102.1			1,462.9			1,641.8
Intersegment eliminations (see Note 9, Information by Operating Segment)		2.8			(11.5	)		(24.3	)		(18.7	)		(14.0	)		2.8			(26.6	)		(24.3	)
Total Operating Revenues	$	1,104.9		$	715.5		$	1,617.5		$	1,282.4		$	880.9		$	1,104.9		$	1,436.3		$	1,617.5

Spire Missouri
Residential	$	365.4		$	331.1	$	628.4		$	607.0	$	529.1		$	365.4		$	776.2	$	628.4
Commercial & industrial		304.0			99.2		373.9			180.0
Commercial and industrial												19.9			304.0			88.1		373.9
Transportation		9.9			9.7		18.9			18.7		10.1			9.9			19.3		18.9
Off-system & other incentive		128.5			9.3		135.9			18.7
Off-system and other incentive												11.3			128.5			15.8		135.9
Other customer revenue		(17.5	)		0.9		(14.6	)		1.4		3.6			(17.5	)		5.9		(14.6	)
Total revenue from contracts with customers		790.3			450.2		1,142.5			825.8		574.0			790.3			905.3		1,142.5
Changes in accrued revenue under alternative revenue programs		0.6			7.3		3.9			5.7		(2.8	)		0.6			13.8		3.9
Total Operating Revenues	$	790.9		$	457.5	$	1,146.4		$	831.5	$	571.2		$	790.9		$	919.1	$	1,146.4

Spire Alabama
Residential	$	144.8		$	120.5		$	214.0		$	194.8		$	129.9		$	144.8		$	210.0		$	214.0
Commercial & industrial		53.2			46.2			77.5			77.5
Commercial and industrial														51.6			53.2			77.6			77.5
Transportation		21.7			19.9			42.2			39.5			20.7			21.7			40.1			42.2
Off-system & other incentive		1.9			—			3.9			—
Off-system and other incentive														0.6			1.9			1.0			3.9
Other customer revenue		3.9			1.7			2.0			3.3			1.9			3.9			2.7			2.0
Total revenue from contracts with customers		225.5			188.3			339.6			315.1			204.7			225.5			331.4			339.6
Changes in accrued revenue under alternative revenue programs		(2.9	)		(2.8	)		(3.4	)		(3.4	)		(0.6	)		(2.9	)		(0.7	)		(3.4	)
Total Operating Revenues	$	222.6		$	185.5		$	336.2		$	311.7		$	204.1		$	222.6		$	330.7		$	336.2

As discussed in Note 4, Regulatory Matters, Spire Missouri (1) reduced “Commercial and industrial” revenue by approximately $150 for the three and six months ended March 31, 2022, to reflect a 2022 settlement in principle regarding February 2021 Operational Flow Order charges and (2) recorded a $25.0 revenue adjustment related to “Off-system and other incentive” sales during February 2021, resulting in negative “Other customer revenue” for the three and six months ended March 31, 2021.

Gross receipts taxes associated with the Company’s natural gas utility services are imposed on the Company, Spire Missouri, and Spire Alabama and billed to its customers. The expense amounts (shown in the table below) are reported gross in the “Taxes, other than income taxes” line in the statements of income, and corresponding revenues are reported in “Operating Revenues.”

	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020		2022		2021		2022		2021
Basic Earnings Per Common Share:
Net Income	$	187.4	$	133.6	$	276.3	$	200.6	$	173.6	$	187.4	$	229.3	$	276.3
Less: Provision for preferred dividends		3.7		3.7		7.4		7.4		3.7		3.7		7.4		7.4
Income allocated to participating securities		0.3		0.2		0.4		0.3		0.2		0.3		0.3		0.4
Income Available to Common Shareholders	$	183.4	$	129.7	$	268.5	$	192.9	$	169.7	$	183.4	$	221.6	$	268.5
Weighted Average Common Shares Outstanding (in millions)		51.6		51.0		51.6		51.0		51.8		51.6		51.7		51.6
Basic Earnings Per Common Share	$	3.56	$	2.55	$	5.21	$	3.78	$	3.27	$	3.56	$	4.28	$	5.21

Diluted Earnings Per Common Share:
Net Income	$	187.4	$	133.6	$	276.3	$	200.6	$	173.6	$	187.4	$	229.3	$	276.3
Less: Provision for preferred dividends		3.7		3.7		7.4		7.4		3.7		3.7		7.4		7.4
Income allocated to participating securities		0.3		0.2		0.4		0.3		0.2		0.3		0.3		0.4
Income Available to Common Shareholders	$	183.4	$	129.7	$	268.5	$	192.9	$	169.7	$	183.4	$	221.6	$	268.5
Weighted Average Common Shares Outstanding (in millions)		51.6		51.0		51.6		51.0		51.8		51.6		51.7		51.6
Dilutive Effect of Restricted Stock and Restricted Stock Units (in millions)*		0.1		0.1		0.1		0.1		0.1		0.1		0.1		0.1
Weighted Average Diluted Common Shares (in millions)		51.7		51.1		51.7		51.1		51.9		51.7		51.8		51.7
Diluted Earnings Per Common Share	$	3.55	$	2.54	$	5.20	$	3.77	$	3.27	$	3.55	$	4.28	$	5.20

* Calculation excludes certain outstanding common shares (shown in millions by period at the right) attributable to stock units subject to performance or market conditions and restricted stock, which could have a dilutive effect in the future		0.1		0.1		0.1		0.1		0.2		0.1		0.2		0.1

As explained in Note 1, Summary of Significant Accounting Policies, the Utilities account for regulated operations in accordance with FASB ASC Topic 980, Regulated Operations. The following regulatory assets and regulatory liabilities were reflected in the balance sheets of the Company, Spire Missouri and Spire Alabama as of March 31, ~~2021,~~2022, September 30, ~~2020,~~2021, and March 31, ~~2020.~~2021.

	March 31,		September 30,		March 31,		March 31,		September 30,		March 31,
Spire	2021		2020		2020		2022		2021		2021
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	30.9	$	30.6	$	30.1	$	0	$	31.1	$	30.9
Unamortized purchased gas adjustments		0.1		5.5		10.4		146.6		243.5		0.1
Other		29.4		33.4		27.5		17.4		31.9		29.4
Total Current Regulatory Assets		60.4		69.5		68.0		164.0		306.5		60.4
Noncurrent:
Pension and postretirement benefit costs		418.3		439.3		415.6		314.8		313.8		418.3
Cost of removal		430.7		395.6		154.3		456.3		431.9		430.7
Future income taxes due from customers		127.4		123.5		113.5		138.0		132.9		127.4
Energy efficiency		43.2		39.6		37.7		53.1		47.6		43.2
Unamortized purchased gas adjustments		51.5		12.1		0		35.2		0		51.5
Other		62.5		59.3		49.6		109.4		67.3		62.5
Total Noncurrent Regulatory Assets		1,133.6		1,069.4		770.7		1,106.8		993.5		1,133.6
Total Regulatory Assets	$	1,194.0	$	1,138.9	$	838.7	$	1,270.8	$	1,300.0	$	1,194.0
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	5.8	$	5.8	$	5.8	$	0	$	5.8	$	5.8
Unamortized purchased gas adjustments		28.9		73.1		8.0		0		11.0		28.9
Other		21.6		34.1		18.0		3.2		17.8		21.6
Total Current Regulatory Liabilities		56.3		113.0		31.8		3.2		34.6		56.3
Noncurrent:
Deferred taxes due to customers		133.2		138.8		174.2		152.1		127.5		133.2
Pension and postretirement benefit costs		170.2		157.6		152.5		179.4		159.3		170.2
Accrued cost of removal		28.7		28.6		31.7		38.3		36.2		28.7
Unamortized purchased gas adjustments		49.7		4.4		82.6		17.1		284.3		49.7
Other		41.7		14.3		31.3		13.5		13.6		41.7
Total Noncurrent Regulatory Liabilities		423.5		343.7		472.3		400.4		620.9		423.5
Total Regulatory Liabilities	$	479.8	$	456.7	$	504.1	$	403.6	$	655.5	$	479.8

	March 31,		September 30,		March 31,		March 31,		September 30,		March 31,
Spire Missouri	2021		2020		2020		2022		2021		2021
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	21.9	$	21.9	$	21.9	$	0	$	21.9	$	21.9
Unamortized purchased gas adjustments								112.5		242.8		0
Other		15.6		10.2		7.5		0.2		11.6		15.6
Total Current Regulatory Assets		37.5		32.1		29.4		112.7		276.3		37.5
Noncurrent:
Future income taxes due from customers		118.6		114.6		106.8		129.3		124.2		118.6
Pension and postretirement benefit costs		324.6		332.6		337.5		227.5		226.0		324.6
Energy efficiency		43.2		39.6		37.7		53.1		47.6		43.2
Unamortized purchased gas adjustments		51.5		12.1		0		35.2		0		51.5
Cost of removal		21.3		7.1		0		34.9		34.9		21.3
Other		45.1		42.7		30.1		92.7		50.4		45.1
Total Noncurrent Regulatory Assets		604.3		548.7		512.1		572.7		483.1		604.3
Total Regulatory Assets	$	641.8	$	580.8	$	541.5	$	685.4	$	759.4	$	641.8
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	3.6	$	3.6	$	3.6	$	0	$	3.6	$	3.6
Unamortized purchased gas adjustments		17.0		72.3		7.1		0		0		17.0
Other		17.0		27.3		13.6		0		13.5		17.0
Total Current Regulatory Liabilities		37.6		103.2		24.3		0		17.1		37.6
Noncurrent:
Deferred taxes due to customers		115.8		121.4		156.8		134.7		110.2		115.8
Pension and postretirement benefit costs		151.9		140.4		130.7		148.3		131.4		151.9
Accrued cost of removal		0		0		4.8		5.7		4.9		0
Unamortized purchased gas adjustments		49.7		4.4		82.6		17.1		284.3		49.7
Other		36.1		8.6		25.5		7.9		8.0		36.1
Total Noncurrent Regulatory Liabilities		353.5		274.8		400.4		313.7		538.8		353.5
Total Regulatory Liabilities	$	391.1	$	378.0	$	424.7	$	313.7	$	555.9	$	391.1

	March 31,		September 30,		March 31,		March 31,		September 30,		March 31,
Spire Alabama	2021		2020		2020		2022		2021		2021
Regulatory Assets:
Current:
Pension and postretirement benefit costs	$	8.0	$	7.7	$	7.2	$	—	$	8.2	$	8.0
Unamortized purchased gas adjustments		—		5.5		10.4		31.0		0		0
Other		3.8		7.2		5.7		10.0		10.6		3.8
Total Current Regulatory Assets		11.8		20.4		23.3		41.0		18.8		11.8
Noncurrent:
Future income taxes due from customers								2.2		2.2		2.2
Pension and postretirement benefit costs		88.5		98.2		72.6		82.0		82.9		88.5
Cost of removal		409.4		388.6		154.3		421.4		397.0		409.4
Future income taxes due from customers		2.2		2.2		0
Other		1.1		0.9		3.2		1.1		1.2		1.1
Total Noncurrent Regulatory Assets		501.2		489.9		230.1		506.7		483.3		501.2
Total Regulatory Assets	$	513.0	$	510.3	$	253.4	$	547.7	$	502.1	$	513.0
Regulatory Liabilities:
Current:
Pension and postretirement benefit costs	$	2.2	$	2.2	$	2.2	$	—	$	2.2	$	2.2
Unamortized purchased gas adjustments		10.6		0		0		—		10.2		10.6
Other		1.4		1.7		0.2		—		1.0		1.4
Total Current Regulatory Liabilities		14.2		3.9		2.4		—		13.4		14.2
Noncurrent:
Pension and postretirement benefit costs		14.3		14.8		17.8		21.1		19.8		14.3
Other		3.7		3.7		3.8		3.6		3.6		3.7
Total Noncurrent Regulatory Liabilities		18.0		18.5		21.6		24.7		23.4		18.0
Total Regulatory Liabilities	$	32.2	$	22.4	$	24.0	$	24.7	$	36.8	$	32.2

A portion of the Company’s and Spire Missouri’s regulatory assets are not earning a return, as shown in the table below:

	March 31,		September 30,		March 31,		March 31,		September 30,		March 31,
	2021		2020		2020		2022		2021		2021
Spire
Pension and postretirement benefit costs	$	226.3	$	232.3	$	226.2	$	152.0	$	165.7	$	226.3
Future income taxes due from customers		125.1		121.3		113.5		135.7		130.7		125.1
Unamortized purchased gas adjustments								147.7		242.8		—
Other		122.9		12.9		13.7		120.2		86.0		122.9
Total Regulatory Assets Not Earning a Return	$	474.3	$	366.5	$	353.4	$	555.6	$	625.2	$	474.3

Spire Missouri
Pension and postretirement benefit costs	$	226.3	$	232.3	$	226.2	$	152.0	$	165.7	$	226.3
Future income taxes due from customers		118.6		114.6		106.8		129.3		124.2		118.6
Unamortized purchased gas adjustments								147.7		242.8		—
Other		122.9		12.9		13.7		120.2		86.0		122.9
Total Regulatory Assets Not Earning a Return	$	467.8	$	359.8	$	346.7	$	549.2	$	618.7	$	467.8

Like all the Company’s regulatory assets, these regulatory assets are expected to be recovered from customers in future rates. The recovery period for the future income taxes due from customers and pension and other postretirement benefit costs could be 20 years or longer, based on current Internal Revenue Service guidelines and average remaining service life of active participants, respectively. For the PGA assets, the recovery period is normally approximately one year, but it will be three years for a portion of these assets due to the Filing Adjustment Factor discussed below. The other items not earning a return are expected to be recovered over a period not to exceed 15 years, consistent with precedent set by the MoPSC. Spire Alabama does not have any regulatory assets that are not earning a return.

The MoPSC approved compliance tariffs with an effective date of December 23, 2021, in Spire Missouri’s general rate case GR-2021-0108. These new tariffs were designed to increase Spire Missouri’s aggregate annual gross base rate revenues by $72.2, which includes $24.9 incremental and $47.3 already being collected through the Infrastructure System Replacement Surcharge (ISRS). The decision, as reflected in the amended report and order dated November 12, 2021, revised the MoPSC’s long-standing position regarding Spire Missouri’s compliance with the FERC Uniform System of Accounts (USOA) on the capitalization of prudently incurred non-operational overheads. The amended report and order required Spire Missouri to cease capitalization of these overhead costs at the time new rates went into effect until a MoPSC staff audit of their revised interpretation of compliance with the USOA framework could be completed. MoPSC staff completed this audit and filed its audit report on March 18, 2022. The report recommends changes to Spire Missouri’s overhead capitalization rates based upon its new time study and the results of the audit. On ~~March 7, 2018,~~April 13, 2022, the MoPSC issued ~~its~~an Order Authorizing Accounting Treatment clarifying that Spire Missouri may defer all non-operational overheads from December 23, 2021 forward into a regulatory asset for future review by the MoPSC in an appropriate proceeding. Based on Spire Missouri’s assessment of recoverability, the total amount deferred under this order ~~in two general rate cases (docketed as GR-2017-0215 and GR-2017-0216), approving new tariffs that became effective on~~was $17.5 through March 31, 2022, comprising:

On April 19, 2018. Certain provisions of the order allow less future recovery of certain deferred or capitalized costs than estimated based upon previous rate proceedings, and management determined that the related regulatory assets should be written down or off in connection with the preparation of the financial statements for the second quarter of 2018.1, 2022, Spire Missouri filed tariff sheets to initiate a new general rate case proceeding which is intended to address the deferred amounts, along with other matters, and is expected to be resolved in nine to eleven months. The proposed tariff changes include revised rate schedules designed to produce an ~~appeal~~annual net increase in Spire Missouri’s gas revenues of portions of the MoPSC’s order, including the disallowance of certain pension costs ($28.8). On February 9, 2021, the Missouri Supreme Court issued its decision, reversing the MoPSC’s order with respect to certain pension costs and affirming the MoPSC’s order in all other respects. The case will now be remanded back to the MoPSC with directions that $9.0 in pension assets that accrued between 1994 and 1996 be added to the Company’s prepaid pension asset.approximately $151.9. The MoPSC has not yet ~~opened~~set a ~~remand docket in the case, but based on the court’s decision, the Company increased its noncurrent regulatory asset~~procedural schedule for ~~“Pension and postretirement benefit costs” and reduced operation and maintenance expense for the three and six months ended March 31, 2021. Like the original write-down in 2018,~~ this ~~adjustment is excluded for the net economic earnings financial measure.~~

In the first half of fiscal 2020, provisions totaling $4.2 were recorded to Spire Missouri’s regulatory liability for Infrastructure System Replacement Surcharge (ISRS) revenues related to customer billings recorded during the period under a disputed ISRS filing, along with a $0.6 provision for interest due on all ISRS revenues in dispute. The after-tax impact of these provisions reduced net income for the six months ended March 31, 2020, by $3.7, which was excluded for the net economic earnings financial measure. As previously disclosed, these matters were settled by the end of fiscal 2020.

In September 2020, Spire Missouri, the MoPSC staff and the OPC reached a Unanimous Stipulation and Agreement regarding Spire Missouri’s request for an Accounting Authority Order (AAO) pertaining to certain costs and lost customer fee revenue related to the COVID-19 pandemic. In October 2020, the MoPSC issued an order approving that agreement and granting an AAO effective through March 31, 2021. Accordingly, Spire Missouri recorded a net regulatory asset of $3.4 and $3.8 as of March 31, 2021, and September 30, 2020, respectively, related to the deferral of applicable costs and has tracked lost customer fee revenue. All ratemaking treatment of the deferrals and any revenue recoveries is reserved for consideration in Spire Missouri’s ongoing general rate case.

On December 11, 2020, Spire Missouri filed a general rate case with the MoPSC that includes new proposed rates for its service areas. The case proposes an increase in base rates, reflecting recovery of system investments and operating costs necessary to maintain the safety and reliability of its natural gas distribution systems as well as to support enhancements to customer service. The request, if approved, represents a net base rate increase of $64.2. Spire Missouri is already recovering $47.3 from customers through the ISRS, resulting in a total base rate increase request of $111.5. The ISRS cap would then be reset in order to continue the timely recovery of the investment in pipeline upgrades. The proposed rates are calculated on a filed rate base of $2,780 based on the end of fiscal year 2020, reflecting the significant investment made in infrastructure upgrades and other systems. Among other things, the filing changes rate design, proposes new customer programs, and aligns the tariffs of the company’s service areas. The filing assumes a common equity ratio of 54.25% and a 9.95% return on equity. Management anticipates that certain measures, such as rate base, capital structure and operating costs will be updated through May 31, 2021. In accordance with Missouri law, the MoPSC has up to 11 months to consider this filing. Direct testimony of other parties is due to be filed in May 2021, local public hearings will take place June 21–25, 2021, and evidentiary hearings are scheduled for late July and early August 2021.

In mid-February 2021, the central U.S. experienced a period of unusually severe cold weather (“Winter Storm Uri”), and Spire Missouri implemented an Operational Flow Order (OFO) to preserve the integrity of its distribution system. During this time, Spire Missouri was required to purchase additional natural gas supply, both to ensure adequate supply for its firm utility customers, and to cover the shortfall created when third-party marketers failed to deliver natural gas supply to its city gates on behalf of their customers. In accordance with its tariffs, Spire Missouri invoiced the cost of gas and associated penalties totaling $195.8 to non-compliant marketers pursuant to the MoPSC-approved OFO ~~tariff.~~tariff and recorded accounts receivable. Recoveries collected, including $3.2 collected to date, will be an offset to cost of natural gas for firm utility customers through the Purchased Gas Adjustment (PGA) and Actual Cost ~~Adjustment.~~Adjustment (ACA), so are net income neutral to Spire Missouri. The three largest counterparties did not remit payment when due, so Spire Missouri filed suit against them in federal court to recover the invoiced amounts. ~~The~~Those suits remain pending. Some marketers have filed complaints with the MoPSC requesting review of the transactions between them and ~~Spire; at this time,~~Spire Missouri. Through the first quarter of fiscal 2022, the Company ~~has~~had no reason to believe the MoPSC ~~will~~would not follow the tariff and ~~has~~had determined collection was probable, so the entire amount was recognized. In late February 2022, the parties to the OFO waiver suits agreed to a settlement in principle, pursuant to which marketers will reimburse Spire Missouri for the actual cost of its incremental gas purchases to serve marketers’ customers during Winter Storm Uri, so Spire Missouri reduced revenue, accounts receivable, cost of gas and regulatory liabilities by approximately $150 in the second quarter of fiscal 2022. The settlement requires MoPSC approval and is ~~probable.~~expected to be concluded in the third quarter of fiscal 2022. Once concluded, the settlement will also resolve Spire Missouri’s lawsuits against the marketers. The MoPSC has also opened a working case to investigate the effects of ~~the February cold weather event~~Winter Storm Uri on all Missouri utilities. Spire Missouri is not subject to any upstream OFO penalties on any interstate pipelines.

Spire Missouri is able to sell excess natural gas supply and capacity to third parties off system, resulting in significant savings to its firm utility customers through the gas incentive mechanisms of its PGA. Spire Missouri normally retains 25% and passes 75% through to its customers. During the February cold weather event, Spire Missouri had an unusually large off-system sale resulting in $100.0 of incremental gross revenue. Due to the nature and magnitude of this particular transaction, Spire Missouri anticipates distributing all orAs a ~~portion of its usual 25% share to customers and plans to work with the MoPSC and community partners over the rest~~result of the ~~fiscal year to determine the method and timing. Accordingly, a $25.0 regulatory liability has been recorded, with a corresponding reduction in revenue.~~

~~Spire Missouri’s~~significant net deferred gas costs and average inventory cost in the second quarter ~~increased by approximately $110~~of fiscal 2021, primarily due to Winter Storm Uri, Spire Missouri filed for and received MoPSC approval for an adjustment to the PGA tariff to increase a Filing Adjustment Factor credit for three years. This credit will allow Spire Missouri to help mitigate rate impacts of Winter Storm Uri costs and the increased gas market from 2020 to 2021. All gas costs will eventually be recovered through the PGA or ACA mechanisms and carrying costs will be applied per the terms of the tariff.

On December 22, 2021, Spire Missouri filed an application with the MoPSC for approval of $800.0 in new financing authority over three years. On February ~~weather event,~~23, 2022, the MoPSC issued an order approving this request, subject to certain standard conditions.

On December 23, 2021, Spire Missouri filed a new ISRS case, its first under the ISRS statute amendments of 2020, seeking accelerated recovery of $11.3 in annual revenue for eligible pipe replacement from June through December 2021.On April 21, 2022, the MoPSC approved a settlement among the parties to resolve the ISRS case, resulting in $8.5 in incremental annual revenue effective in May 2022.

On October 26, 2021, Spire Alabama made its annual Rate Stabilization and Equalization (RSE) rate filing with the APSC, presenting the utility’s budget for the fiscal year ending September 30, 2022, including ~~projected offsets~~net income and a calculation of ~~off-system sales~~allowed return on average common equity (ROE). Following a regulatory review, adjusted rates became effective January 1, 2022.

Spire Alabama filed GSA rate increases effective December 1, 2021, and ~~tariff-based OFO penalties.~~April 1, 2022, primarily attributable to higher natural gas prices.

In addition to those discussed above for Spire Missouri and Spire Alabama, Spire is affected by the following regulatory matters.

In October 2021, Spire Gulf made its annual RSE rate filing with the APSC based on its budget for fiscal 2022 and an allowed ROE of 9.95%. New rates designed to provide increased annual revenues of $1.0 became effective January 3, 2022.

On August 23, 2021, Spire Mississippi filed its Rate Stabilization Adjustment Rider (RSA) for the rate year ended June 30, 2021, which reflected an increase to annual revenue totaling $1.1. The MSPSC, by its order dated January 18, 2022, approved a stipulation agreement between the Mississippi Public Utilities Staff and Spire Mississippi that provided for increased annual revenues of $0.8 through rates that became effective on February 1, 2022.

In August 2018, the ~~Federal Energy Regulatory Commission (FERC)~~FERC approved an order issuing a Certificate of Public Convenience and Necessity for the Spire STL Pipeline (“August 2018 Order”)~~, and in~~. In November 2018, the FERC issued a Notice to Proceed, ~~allowing construction to begin. In~~and in November 2019, Spire STL Pipeline received FERC authorization to place the pipeline into service. Also, in November 2019, the FERC issued an Order on Rehearing of the August 2018 Order dismissing or denying the outstanding requests for rehearing filed by several parties, dismissing the request for stay filed by one party, and noting the withdrawal of the request for rehearing by another party. OnIn January ~~21,~~ 2020, two of the rehearing parties filed petitions for review of the FERC’s orders with the U.S. Court of Appeals for the District of Columbia ~~Circuit.~~Circuit (“DC Circuit”). On June 22, 2021, that court issued an order vacating the Certificate of Public Convenience and Necessity and remanding the matter back to the FERC for further action. On September 14, 2021, and December 3, 2021, the FERC issued temporary certificates to allow the pipeline to continue operating indefinitely while it considers approval of a new permanent certificate. Certain parties in the temporary certificate proceeding sought rehearing of the FERC’s December 3, 2021 temporary certificate. The FERC denied rehearing by operation of law on February 3, 2022. On March 7, 2022, one group of the rehearing parties filed a petition for review of FERC’s December 3, 2021 temporary certificate order in the DC Circuit limited to whether the temporary certificates carry eminent domain authority. The DC Circuit proceeding remains pending. Meanwhile, on December 15, 2021, the FERC issued a notice of intent to prepare a supplemental environmental impact statement (EIS) with the final EIS not anticipated until October 7, 2022. Spire STL Pipeline will continue to pursue all legal and regulatory avenues to ensure access to reliable, affordable and safe delivery of energy for eastern Missouri. While there is no impairment at this time, if the pipeline is taken out of service, the Company’s financial condition and results of operations may be adversely impacted by impairment of Spire STL Pipeline’s assets, currently carried at over $270, and other effects. If Spire Missouri ~~have intervened~~is unable to obtain sufficient pipeline capacity to meet its customers’ annual and ~~filed responsive briefs in this proceeding, which remains pending.~~seasonal natural gas demands, Spire Missouri’s financial condition and results of operations may be adversely impacted.

On October 9, 2020, Spire Storage West LLC (“Spire Storage”) filed with the FERC an Abbreviated Application for an Amendment of Certificate of Public Convenience and Necessity, Reaffirmation of Market-Based Rate Authority, and Related Authorizations pursuant to Section 7(c) of the Natural Gas Act. The FERC issued a final EIS for this project on March 15, 2022. The final EIS concluded that construction and operation of the project would not result in significant environmental impacts and that project greenhouse gas emissions fall even below the FERC’s presumptive significance threshold for climate change impacts. The application, which requests authorization to expand capacity and increase pipeline connectivity at certain of Spire Storage’s natural gas storage facilities in Wyoming, remains pending.

Spire Spire Missouri and Spire Alabama have a syndicated revolving credit facility pursuant to a loan agreement with 11 banks, expiring October 31, 2023. The loan agreement has an aggregate credit commitment of $975.0, including sublimits of $300.0 for Spire, $475.0 for Spire Missouri, and $200.0 for Spire Alabama. These sublimits may be reallocated from time to time among the three borrowers within the $975.0 aggregate commitment, with commitments fees applied for each borrower relative to its credit rating. Spire may use its line to provide for the funding needs of various subsidiaries. The agreement also contains financial covenants limiting each borrower’s consolidated total debt, including short-term debt, to no more than 70% of its total capitalization. As defined in the line of credit, on March 31, 2021, total debt was less than 60% of total capitalization for each borrower.

~~Spire has~~utilizes a commercial paper program (“CP Program”) pursuant to which Spire may issue short-term, unsecured commercial paper notes. Amounts available under the CP Program may be borrowed, repaid and re-borrowed from time to time, with the aggregate face or principal amount of the notes outstanding under the CP Program at any time not to exceed $975.0. The notes may have maturities of up to 365 days from date of issue.

OnIn March 26, 2020, Spire entered into a loan agreement with 2 banks providing for a term loan of $150.0, which was immediately fully funded. It was repaid on December 16, 2020. The term loan bore interest at the LIBOR Rate (as defined in the loan agreement) plus 0.85% per annum.

~~On March 23,~~ 2021, Spire Missouri entered into a loan agreement with several banks for a $250.0, 364-day unsecured term loan with an interest rate based on LIBOR plus 65 basis points. The loan ~~carries 0 prepayment penalty and has the same covenants as the revolving credit facility.~~was repaid in March 2022.

Information about ~~Spire’s consolidated~~ short-term borrowings, ~~and about~~including Spire Missouri’s and Spire Alabama’s borrowings from Spire, is presented in the following table. As of March 31, ~~2021, $398.1~~2022, $496.6 of Spire’s ~~short-term~~CP Program borrowings ~~were~~was used to support lending to the Utilities.

	Spire (Parent Only)								Spire Missouri									Spire Alabama						Spire			Spire (Parent Only)			Spire Missouri						Spire Alabama			Spire
	Credit		Term			CP			Credit			Term			Spire			Credit			Spire			Consol-			CP			Term			Spire			Spire			Consol-
	Facility		Loan			Program			Facility			Loan			Note			Facility			Note			idated			Program			Loan			Note			Note			idated
Six Months Ended March 31, 2021
Six Months Ended March 31, 2022
Highest borrowings outstanding																											$	746.8		$	250.0		$	412.0		$	191.6		$	996.8
Lowest borrowings outstanding																												408.0			—			43.2			38.4			556.0
Weighted average borrowings	$	—	$	63.5		$	606.9		$	—		$	11.0		$	360.8		$	—		$	59.6		$	681.4			572.5			226.6			220.0			116.8			799.1
Lowest borrowings outstanding		—		—			403.5			—			—			277.2			—			—			455.5
Highest borrowings outstanding		—		150.0			775.0			—			250.0			441.9			—			152.2			850.5
Weighted average interest rate																												0.4	%		0.8	%		0.3	%		0.4	%		0.5	%
As of March 31, 2022
Borrowings outstanding																											$	607.1		$	—		$	277.2		$	156.6		$	607.1
Weighted average interest rate																												0.9	%	n/a				0.9	%		0.9	%		0.9	%
As of September 30, 2021
Borrowings outstanding																											$	422.0		$	250.0		$	240.9		$	49.0		$	672.0
Weighted average interest rate	n/a			1.1	%		0.3	%	n/a				0.8	%		0.3	%	n/a				0.2	%		0.4	%		0.2	%		0.7	%		0.2	%		0.2	%		0.4	%
As of March 31, 2021
Borrowings outstanding	$	—	$	—		$	403.5		$	—		$	250.0		$	369.4		$	—		$	—		$	653.5		$	403.5		$	250.0		$	369.4		$	—		$	653.5
Weighted average interest rate	n/a		n/a				0.2	%	n/a				0.8	%		0.2	%	n/a			n/a				0.4	%		0.2	%		0.8	%		0.2	%	n/a				0.4	%
As of September 30, 2020
Borrowings outstanding	$	—	$	150.0		$	498.0		$	—		$	—		$	301.2		$	—		$	121.3		$	648.0
Weighted average interest rate	n/a			1.1	%		0.2	%	n/a			n/a				0.2	%	n/a				0.2	%		0.6	%
As of March 31, 2020
Borrowings outstanding	$	—	$	150.0		$	175.5		$	185.1		$	—		$	39.6		$	50.0		$	33.0		$	560.6
Weighted average interest rate	n/a			2.1	%		1.8	%		1.8	%	n/a				1.9	%		1.9	%		1.9	%		1.9	%

The long-term debt agreements of Spire, Spire Missouri and Spire Alabama contain customary financial covenants and default provisions. As of March 31, ~~2021,~~2022, there were no events of default under these financial covenants.

Interest expense shown on ~~Spire’s consolidated~~the statements of ~~income and Spire Missouri’s statements of comprehensive~~ income is net of the capitalized interest amounts shown in the following table.

	Three Months Ended March 31,				Six Months Ended March 31,				Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020		2022		2021		2022		2021
Spire	$	1.1	$	1.4	$	2.0	$	3.6	$	1.0	$	1.1	$	2.1	$	2.0
Spire Missouri		0.1		0.3		0.1		0.6		0.1		0.1		0.1		0.1
Spire Alabama		0.7		0.4		1.3		1.0		0.8		0.7		1.6		1.3

On December ~~15, 2020,~~7, 2021, pursuant to its registration statement on Form S-3 filed with the SEC, Spire ~~Alabama~~Missouri issued ~~and sold to certain institutional investors in a private placement $150.0~~$300.0 of ~~2.04% Series 2020 Senior Notes~~first mortgage bonds due December ~~15, 2030. Interest is payable semi-annually. The notes are senior unsecured obligations of Spire Alabama and rank equal in right to payment~~2, 2024, secured equally with all its other ~~senior unsecured indebtedness. Spire Alabama used~~first mortgage bonds. Interest is payable quarterly in arrears at a floating rate based on the ~~proceeds to repay short-term debt.~~

~~In February 2021, Spire issued $175.0 of 2021 Series A 0.75% Remarketable Senior Notes as part~~compounded secured overnight financing rate plus 50 basis points, with a maximum rate of the ~~equity units described in~~lesser of 8% or the ~~next section.~~

In February 2021, Spire issued 3.5 million equity units, initially in the form of Corporate Units, for an aggregate stated amount of $175.0, resulting in net proceeds (after underwriting fees and other issuance costs) of $169.3. Each “Corporate Unit” has a stated amount of ~~fifty dollars~~ and consists of (i) a stock purchase contract and (ii) a 1/20, or 5%, undivided beneficial ownership interest in 1 thousand dollars principal amount of Spire’s 2021 Series A 0.75% Remarketable Senior Notes due March 1, 2026 (RSNs). The RSNs are pledged as collateral to secure the holder’s obligation under the related stock purchase contracts. Each stock purchase contract obligates the holder to purchase, and Spire to issue and deliver, on March 1, 2024, for a price of ~~fifty dollars~~ ~~in cash, a variable number of shares of its common stock as follows (subject to anti-dilution adjustments).~~

*Based on the volume-weighted average price of Spire common stock during the 20 trading days before settlement.

~~If a holder elects to settle purchase contracts early, the holder would pay fifty dollars per unit and receive 0.6354 shares per unit.~~

~~The Company will make quarterly interest payments on the RSNs at the~~ rate of 0.75% per year and quarterly contract adjustment payments on the stock purchase contracts at the rate of 6.75%. The RSNs and the contract adjustment payments are structurally subordinated to all liabilities of Spire’s subsidiaries.

~~The Company has recorded the $35.0 present value of the stock purchase contract payments as a liability (reflected in “Other” current and noncurrent liabilities on the balance sheet) offset~~then permitted by a charge to additional paid-in capital in equity. This noncash financing activity has been excluded from the statement of cash flows. Interest payments on the RSNs are recorded as interest expense and stock purchase contract payments are charged against the liability. Accretion of the stock purchase contract liability is recorded as imputed interest expense. In calculating diluted EPS, the Company applies the treasury stock method to the Corporate Units. These securities have not had an effect on diluted EPS.

In order to secure funds necessary for the holders to pay the purchase price of the common stock on the purchase contract settlement date, the remarketing agent will remarket the RSNs on behalf of the current holders to new third-party investors. Following any successful remarketing of the RSNs, the interest rate on the RSNs will be reset, interest will be payable on a semi-annual basis, and Spire will cease to have the option to redeem the RSNs, other than in connection with the occurrence or continuance of certain special events.applicable law.

The carrying amounts of cash and cash equivalents, notes receivable, and short-term debt approximate fair value due to the short maturity of these instruments. The fair values of long-term debt are estimated based on market prices for similar issues. Refer to Note 7, Fair Value Measurements, for information on financial instruments measured at fair value on a recurring basis.

The carrying amounts and estimated fair values of financial instruments not measured at fair value on a recurring basis are shown in the following tables, classified according to the fair value hierarchy. There were no such instruments classified as Level 3 (significant unobservable inputs) as of March 31, ~~2021,~~2022, September 30, ~~2020,~~2021, and March 31, ~~2020.~~2021.

					Classification of Estimated Fair Value								Classification of Estimated Fair Value
	Carrying Amount		Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Carrying Amount		Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)
Spire
As of March 31, 2021
As of March 31, 2022
Cash and cash equivalents	$	104.0	$	104.0	$	104.0	$	—	$	8.3	$	8.3	$	8.3	$	—
Notes payable		653.5		653.5		—		653.5		607.1		607.1		—		607.1
Long-term debt, including current portion		2,803.3		3,090.9		—		3,090.9		3,238.5		3,299.1		—		3,299.1
As of September 30, 2020
As of September 30, 2021
Cash and cash equivalents	$	4.1	$	4.1	$	4.1	$	—	$	4.3	$	4.3	$	4.3	$	—
Notes payable		648.0		648.0		—		648.0		672.0		672.0		—		672.0
Long-term debt, including current portion		2,484.1		2,908.6		—		2,908.6		2,994.9		3,375.9		—		3,375.9
As of March 31, 2020
As of March 31, 2021
Cash and cash equivalents	$	108.4	$	108.4	$	108.4	$	—	$	104.0	$	104.0	$	104.0	$	—
Notes payable		560.6		560.6		—		560.6		653.5		653.5		—		653.5
Long-term debt, including current portion		2,490.2		2,671.0		—		2,671.0		2,803.3		3,090.9		—		3,090.9

Spire Missouri
As of March 31, 2021
As of March 31, 2022
Notes payable – associated companies									$	277.2	$	277.2	$	—	$	277.2
Long-term debt										1,637.1		1,691.9		—		1,691.9
As of September 30, 2021
Notes payable	$	250.0	$	250.0	$	—	$	250.0	$	250.0	$	250.0	$	—	$	250.0
Notes payable – associated companies		369.4		369.4		—		369.4		240.9		240.9		—		240.9
Long-term debt		1,092.4		1,254.2		—		1,254.2		1,338.4		1,540.4		—		1,540.4
As of September 30, 2020
Notes payable – associated companies	$	301.2	$	301.2	$	—	$	301.2
Long-term debt		1,092.0		1,313.5		—		1,313.5
As of March 31, 2020
Cash and cash equivalents	$	5.1	$	5.1	$	5.1	$	—
As of March 31, 2021
Notes payable		185.1		185.1		—		185.1	$	250.0	$	250.0	$	—	$	250.0
Notes payable – associated companies		39.6		39.6		—		39.6		369.4		369.4		—		369.4
Long-term debt		1,098.7		1,231.2		—		1,231.2		1,092.4		1,254.2		—		1,254.2

Spire Alabama
As of March 31, 2022
Cash and cash equivalents									$	0.2	$	0.2	$	0.2	$	—
Notes payable – associated companies										156.6		156.6		—		156.6
Long-term debt, including current portion										571.4		588.0		—		588.0
As of September 30, 2021
Notes payable – associated companies									$	49.0	$	49.0	$	—	$	49.0
Long-term debt										621.2		707.5		—		707.5
As of March 31, 2021
Cash and cash equivalents	$	18.2	$	18.2	$	18.2	$	—	$	18.2	$	18.2	$	18.2	$	—
Notes receivable – associated companies		20.0		20.0		—		20.0		20.0		20.0		—		20.0
Long-term debt, including current portion		621.1		682.3		—		682.3		621.1		682.3		—		682.3
As of September 30, 2020
Notes payable – associated companies	$	121.3	$	121.3	$	—	$	121.3
Long-term debt, including current portion		471.8		576.9		—		576.9
As of March 31, 2020
Cash and cash equivalents	$	0.1	$	0.1	$	0.1	$	—
Notes payable		50.0		50.0		—		50.0
Notes payable – associated companies		33.0		33.0		—		33.0
Long-term debt		471.7		535.1		—		535.1

The information presented below 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). Derivative instruments classified in Level 2 include physical commodity derivatives that are valued using broker or dealer quotation services 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 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 March 31, ~~2021, and those Level 3 balances at~~2022, September 30, ~~2020,~~2021, and March 31, ~~2020, consisted of gas commodity contracts.~~2021. 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. 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.

	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of March 31, 2021
As of March 31, 2022
ASSETS
Gas Utility:
U.S. stock/bond mutual funds	$	23.5	$	0	$	0	$	0		$	23.5	$	23.0	$	0	$	0		$	23.0
NYMEX/ICE natural gas contracts		0.4		0		0		(0.4	)		0		58.9		0		(58.9	)		0
Gasoline and heating oil contracts		0.3		0		0		(0.3	)		0
Gas Marketing:
NYMEX/ICE natural gas contracts		0		15.1		0		(12.3	)		2.8		0		96.1		(88.4	)		7.7
Natural gas commodity contracts		0		9.3		0		0			9.3		0		30.8		(1.0	)		29.8
Other:
U.S. stock/bond mutual funds		22.9		0		0		0			22.9		24.1		0		0			24.1
Interest rate swaps		0		27.9		0		0			27.9		28.8		0		(7.9	)		20.9
Total	$	47.1	$	52.3	$	0	$	(13.0	)	$	86.4	$	134.8	$	126.9	$	(156.2	)	$	105.5
LIABILITIES
Gas Utility:
NYMEX/ICE natural gas contracts	$	1.8	$	0	$	0	$	(1.8	)	$	0
Gas Marketing:
NYMEX/ICE natural gas contracts		0		4.7		0		(4.7	)		0	$	0	$	40.4	$	(40.4	)	$	0
Natural gas commodity contracts		0		24.5		0		0			24.5		0		106.2		(1.0	)		105.2
Other:
Interest rate swaps		0		21.4		0		0			21.4		7.9		0		(7.9	)		0
Total	$	1.8	$	50.6	$	0	$	(6.5	)	$	45.9	$	7.9	$	146.6	$	(49.3	)	$	105.2

	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total		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, 2020
As of September 30, 2021
ASSETS
Gas Utility:
U.S. stock/bond mutual funds	$	21.9	$	0	$	0	$	0		$	21.9	$	23.8	$	0	$	0		$	23.8
NYMEX/ICE natural gas contracts		6.3		0		0		(6.3	)		0		104.0		0		(104.0	)		0
Gasoline and heating oil contracts		0.3		0		0		(0.3	)		0
Gas Marketing:
NYMEX/ICE natural gas contracts		0		27.7		0		(25.4	)		2.3		0		114.7		(93.7	)		21.0
Natural gas commodity contracts		0		14.5		0.4		0			14.9		0		35.2		(5.5	)		29.7
Other:
U.S. stock/bond mutual funds		18.6		0		0		0			18.6		26.2		0		0			26.2
Interest rate swaps													12.6		0		(5.2	)		7.4
Total	$	47.1	$	42.2	$	0.4	$	(32.0	)	$	57.7	$	166.6	$	149.9	$	(208.4	)	$	108.1
LIABILITIES
Gas Utility:
NYMEX/ICE natural gas contracts	$	0.9	$	0	$	0	$	(0.9	)	$	0	$	0.3	$	0	$	(0.3	)	$	0
Gas Marketing:
NYMEX/ICE natural gas contracts		0.7		21.4		0		(22.1	)		0		0		62.0		(62.0	)		0
Natural gas commodity contracts		0		22.3		0		0			22.3		0		96.7		(5.5	)		91.2
Other:
Interest rate swaps		0		54.2		0		0			54.2		5.7		0		(5.2	)		0.5
Total	$	1.6	$	97.9	$	0	$	(23.0	)	$	76.5	$	6.0	$	158.7	$	(73.0	)	$	91.7

As of March 31, 2020
As of March 31, 2021
ASSETS
Gas Utility:
U.S. stock/bond mutual funds	$	18.1	$	0	$	0	$	0		$	18.1	$	23.5	$	0	$	0		$	23.5
NYMEX/ICE natural gas contracts		0.1		0		0		(0.1	)		0
Gas Marketing:
NYMEX/ICE natural gas contracts		0.2		6.8		0		(7.0	)		0
Natural gas commodity contracts		0		17.5		0		(4.8	)		12.7
Other:
U.S. stock/bond mutual funds		17.6		0		0		0			17.6
Total	$	36.0	$	24.3	$	0	$	(11.9	)	$	48.4
LIABILITIES
Gas Utility:
NYMEX/ICE natural gas contracts	$	12.2	$	0	$	0	$	(12.2	)	$	0		0.4		0		(0.4	)		0
Gasoline and heating oil contracts		0.4		0		0		(0.4	)		0		0.3		0		(0.3	)		0
Gas Marketing:
NYMEX/ICE natural gas contracts		0.5		8.4		0		(8.9	)		0		0		15.1		(12.3	)		2.8
Natural gas commodity contracts		0		27.7		1.1		(4.8	)		24.0		0		9.3		0			9.3
Other:
U.S. stock/bond mutual funds													22.9		0		0			22.9
Interest rate swaps		0		66.9		0		0			66.9		0		27.9		0			27.9
Total	$	13.1	$	103.0	$	1.1	$	(26.3	)	$	90.9	$	47.1	$	52.3	$	(13.0	)	$	86.4
LIABILITIES
Gas Utility:
NYMEX/ICE natural gas contracts												$	1.8	$	0	$	(1.8	)	$	0
Gas Marketing:
NYMEX/ICE natural gas contracts													0		4.7		(4.7	)		0
Natural gas commodity contracts													0		24.5		0			24.5
Other:
Interest rate swaps													0		21.4		0			21.4
Total												$	1.8	$	50.6	$	(6.5	)	$	45.9

												Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of March 31, 2022
ASSETS
U.S. stock/bond mutual funds												$	23.0	$	0	$	0		$	23.0
NYMEX/ICE natural gas contracts													58.9		0		(58.9	)		0
Total												$	81.9	$	0	$	(58.9	)	$	23.0

As of September 30, 2021
ASSETS
U.S. stock/bond mutual funds												$	23.8	$	0	$	0		$	23.8
NYMEX/ICE natural gas contracts													104.0		0		(104.0	)		0
Total												$	127.8	$	0	$	(104.0	)	$	23.8
LIABILITIES
NYMEX/ICE natural gas contracts												$	0.3	$	0	$	(0.3	)	$	0
	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of March 31, 2021
ASSETS
U.S. stock/bond mutual funds	$	23.5	$	0	$	0	$	0		$	23.5	$	23.5	$	0	$	0		$	23.5
NYMEX/ICE natural gas contracts		0.4		0		0		(0.4	)		0		0.4		0		(0.4	)		0
Gasoline and heating oil contracts		0.3		0		0		(0.3	)		0		0.3		0		(0.3	)		0
Total	$	24.2	$	0	$	0	$	(0.7	)	$	23.5	$	24.2	$	0	$	(0.7	)	$	23.5
LIABILITIES
NYMEX/ICE natural gas contracts	$	1.8	$	0	$	0	$	(1.8	)	$	0	$	1.8	$	0	$	(1.8	)	$	0

As of September 30, 2020
ASSETS
U.S. stock/bond mutual funds	$	21.9	$	0	$	0	$	0		$	21.9
NYMEX/ICE natural gas contracts		6.3		0		0		(6.3	)		0
Gasoline and heating oil contracts		0.3		0		0		(0.3	)		0
Total	$	28.5	$	0	$	0	$	(6.6	)	$	21.9
LIABILITIES
NYMEX/ICE natural gas contracts	$	0.9	$	0	$	0	$	(0.9	)	$	0

As of March 31, 2020
ASSETS
U.S. stock/bond mutual funds	$	18.1	$	0	$	0	$	0		$	18.1
NYMEX/ICE natural gas contracts		0.1		0		0		(0.1	)		0
Total	$	18.2	$	0	$	0	$	(0.1	)	$	18.1
LIABILITIES
NYMEX/ICE natural gas contracts	$	12.2	$	0	$	0	$	(12.2	)	$	0
Gasoline and heating oil contracts		0.4		0		0		(0.4	)		0
Total	$	12.6	$	0	$	0	$	(12.6	)	$	0

Spire Missouri ~~has~~and Spire Alabama have non-contributory, defined benefit, trusteed forms of pension plans covering the majority of its employees. Plan assets consist primarily of corporate and U.S. government obligations and a growth segment consisting of exposure to equity markets, commodities, real estate and inflation-indexed securities, achieved through derivative instruments.

~~Spire Alabama has non-contributory, defined benefit, trusteed forms of pension plans covering the majority of its~~their employees. Qualified plan assets are comprised of mutual and commingled funds consisting of U.S. equities with varying strategies, global equities, alternative investments, and fixed income investments.

The net periodic pension cost includes components shown in the following tables. The components other than the service costs and regulatory adjustment are presented in “Other Income, ~~(Expense),~~ Net” in the income statement, except for Spire Alabama’s losses on lump-sum settlements. Such losses are capitalized in regulatory balances and amortized over the remaining actuarial life of individuals in the plan, and that amortization is presented in “Other Income, ~~(Expense),~~ Net.”

	Three Months Ended March 31,						Six Months Ended March 31,						Three Months Ended March 31,						Six Months Ended March 31,
	2021			2020			2021			2020			2022			2021			2022			2021
Spire
Service cost – benefits earned during the period	$	5.3		$	5.6		$	10.9		$	11.1		$	5.4		$	5.3		$	10.8		$	10.9
Interest cost on projected benefit obligation		4.6			5.8			9.8			11.7			5.3			4.6			10.4			9.8
Expected return on plan assets		(7.1	)		(9.0	)		(15.1	)		(18.2	)		(8.2	)		(7.1	)		(16.4	)		(15.1	)
Amortization of prior service credit		(0.7	)		(0.6	)		(1.5	)		(1.2	)		(1.2	)		(0.7	)		(2.3	)		(1.5	)
Amortization of actuarial loss		3.8			3.9			7.8			7.6			3.6			3.8			7.3			7.8
Loss on lump-sum settlements		3.8			21.0			3.8			21.0			11.7			3.8			11.7			3.8
Subtotal		9.7			26.7			15.7			32.0			16.6			9.7			21.5			15.7
Regulatory adjustment		5.2			(11.3	)		14.8			(1.7	)		(1.2	)		5.2			9.4			14.8
Net pension cost	$	14.9		$	15.4		$	30.5		$	30.3		$	15.4		$	14.9		$	30.9		$	30.5

Spire Missouri
Service cost – benefits earned during the period	$	3.9		$	3.9		$	7.8		$	7.7		$	3.8		$	3.9		$	7.7		$	7.8
Interest cost on projected benefit obligation		3.5			4.0			7.0			8.2			3.6			3.5			7.1			7.0
Expected return on plan assets		(5.6	)		(6.3	)		(11.2	)		(12.9	)		(5.9	)		(5.6	)		(11.9	)		(11.2	)
Amortization of prior service (credit) cost		(0.1	)		0.1			(0.3	)		0.1
Amortization of prior service credit														(0.5	)		(0.1	)		(1.0	)		(0.3	)
Amortization of actuarial loss		2.8			3.1			5.7			6.0			2.8			2.8			5.6			5.7
Loss on lump-sum settlements		—			21.0			—			21.0			6.8			—			6.8			—
Subtotal		4.5			25.8			9.0			30.1			10.6			4.5			14.3			9.0
Regulatory adjustment		7.5			(13.2	)		15.1			(5.5	)		1.1			7.5			9.6			15.1
Net pension cost	$	12.0		$	12.6		$	24.1		$	24.6		$	11.7		$	12.0		$	23.9		$	24.1

Spire Alabama
Service cost – benefits earned during the period	$	1.4		$	1.5		$	2.9		$	3.0		$	1.3		$	1.4		$	2.7		$	2.9
Interest cost on projected benefit obligation		1.2			1.3			2.4			2.5			1.2			1.2			2.3			2.4
Expected return on plan assets		(1.5	)		(1.8	)		(3.1	)		(3.5	)		(1.4	)		(1.5	)		(2.8	)		(3.1	)
Amortization of prior service credit		(0.6	)		(0.6	)		(1.2	)		(1.2	)		(0.6	)		(0.6	)		(1.2	)		(1.2	)
Amortization of actuarial loss		1.0			0.8			2.1			1.6			0.8			1.0			1.7			2.1
Loss on lump-sum settlements		3.8			—			3.8			—			4.9			3.8			4.9			3.8
Subtotal		5.3			1.2			6.9			2.4			6.2			5.3			7.6			6.9
Regulatory adjustment		(2.5	)		1.7			(0.7	)		3.4			(2.5	)		(2.5	)		(0.6	)		(0.7	)
Net pension cost	$	2.8		$	2.9		$	6.2		$	5.8		$	3.7		$	2.8		$	7.0		$	6.2

Pursuant to the provisions of Spire Missouri’s and Spire Alabama’s pension plans, pension obligations may be satisfied by monthly annuities, lump-sum cash payments, or special termination benefits. Lump-sum payments are recognized as settlements (which can result in gains or losses) only if the total of such payments exceeds the sum of service and interest costs in a specific year. Special termination benefits, when offered, are also recognized as settlements which can result in gains or losses. For the three and six months ended March 31, ~~2021,~~2022, 1 Spire Missouri plan and 2 Spire Alabama ~~plan~~plans met the criteria for settlement recognition. The lump-sum payments recognized as settlements for the remeasurement were ~~$12.9.~~$21.6 for the Spire Missouri plan and $17.4 for the Spire Alabama plans. The lump-sum settlement resulted in ~~a loss~~losses of ~~$3.8.~~$6.8 and $4.9 for Spire Missouri and Spire Alabama, respectively. For the remeasurement, the discount rate for the ~~Alabama~~Spire Missouri plan was updated to ~~3.2%~~3.6% from ~~2.95%~~3.0% at September 30, ~~2020.~~2021. and the discount rate for the Spire Alabama plans were updated to 3.6% from 3.0% for the first plan and 3.1% for the second plan at September 30, 2021. The Spire Alabama regulatory tariff requires that settlement losses be amortized over the remaining actuarial life of the individuals in the plan— in this case, ~~11.4 years.~~12.3 years for the one plan and 12.6 years for the second plan. Therefore, 0 lump sum settlement expense was recorded in the period ended March 31, ~~2021. In~~2022.

Effective December 23, 2021, the ~~quarter ended March 31, 2020, 2~~pension cost for Spire Missouri’s western territory (Missouri West) included in customer rates was reduced from $5.5 to $4.4 per year, the pension cost included in Spire Missouri’s eastern territory (Missouri East) customer rates was increased from $29.0 to $32.4 per year. The difference between these amounts and pension expense as calculated pursuant to the above and that otherwise would be included in the statements of income and statements of comprehensive income is deferred as a regulatory asset or regulatory liability.

Also effective December 23, 2021, Missouri ~~plans met~~East prepaid pension assets and other postretirement benefits that were previously being included in rates at $21.6 per year for eight years were reduced to $11.0 per year, with the ~~criteria~~amortization period being reset for ~~settlement recognition. The lump-sum payments recognized as settlements~~another eight years. Missouri West net liability for pension and other postretirement benefits that were previously reducing rates by $3.3 per year for eight years were reduced to a $1.1 reduction in rates per year, with the ~~remeasurement were $59.1. The lump-sum settlement resulted in a loss of $21.0. For the remeasurements, the discount rates~~amortization period being reset for ~~the Missouri plans were updated to 2.85% from 3.2% at September 30, 2019.~~another eight years.

The funding policy of the Utilities is to contribute an amount not less than the minimum required by government funding standards, nor more than the maximum deductible amount for federal income tax purposes. Fiscal ~~2021~~2022 contributions to Spire Missouri’s pension plans through March 31, ~~2021~~2022 were ~~$28.3~~$21.2 to the qualified trusts and 0ne to non-qualified plans. There were ~~$4.5~~$10.0 of fiscal ~~2021~~2022 contributions to the Spire Alabama pension plans through March 31, ~~2021.~~2022.

Contributions to the qualified trusts of Spire Missouri’s pension plans for the remainder of fiscal ~~2021~~2022 are anticipated to be ~~$13.7.~~$16.5. Contributions to Spire Alabama’s pension plans for the remainder of fiscal ~~2021~~2022 are anticipated to be ~~$6.6.~~$4.4.

Spire and the Utilities provide certain life insurance benefits at retirement. Spire Missouri plans provide for medical insurance after early retirement until age 65. For retirements prior to January 1, 2015, certain Spire Missouri plans provided medical insurance after retirement until death. The Spire Alabama plans provide medical insurance upon retirement until death for certain retirees depending on the type of employee and the date the employee was originally hired.

The net periodic postretirement benefit cost includes components shown in the following tables. The components other than the service costs and regulatory adjustment are presented in “Other Income, ~~(Expense),~~ Net” in the income statement, except in the event Spire Alabama incurs losses on lump-sum settlements. Any such losses are capitalized in regulatory balances and amortized over the remaining actuarial life of individuals in the plan, and that amortization is presented in “Other Income, ~~(Expense),~~ Net.”

	Three Months Ended March 31,						Six Months Ended March 31,						Three Months Ended March 31,						Six Months Ended March 31,
	2021			2020			2021			2020			2022			2021			2022			2021
Spire
Service cost – benefits earned during the period	$	1.9		$	1.5		$	3.7		$	2.9		$	2.0		$	1.9		$	3.9		$	3.7
Interest cost on accumulated postretirement benefit obligation		1.6			1.5			3.0			3.1			1.5			1.6			3.0			3.0
Expected return on plan assets		(4.1	)		(4.1	)		(8.1	)		(8.2	)		(4.3	)		(4.1	)		(8.5	)		(8.1	)
Amortization of prior service cost (credit)		0.2			(0.1	)		0.5			(0.3	)
Amortization of prior service cost														0.2			0.2			0.5			0.5
Amortization of actuarial gain		(0.4	)		(0.5	)		(0.8	)		(1.0	)		(0.6	)		(0.4	)		(1.2	)		(0.8	)
Subtotal		(0.8	)		(1.7	)		(1.7	)		(3.5	)		(1.2	)		(0.8	)		(2.3	)		(1.7	)
Regulatory adjustment		3.2			4.0			6.6			8.0			0.1			3.2			3.3			6.6
Net postretirement benefit cost	$	2.4		$	2.3		$	4.9		$	4.5
Net postretirement benefit (income) cost													$	(1.1	)	$	2.4		$	1.0		$	4.9

Spire Missouri
Service cost – benefits earned during the period	$	1.5		$	1.3		$	3.1		$	2.6		$	1.6		$	1.5		$	3.2		$	3.1
Interest cost on accumulated postretirement benefit obligation		1.1			1.1			2.2			2.3			1.1			1.1			2.2			2.2
Expected return on plan assets		(2.8	)		(2.9	)		(5.5	)		(5.7	)		(2.9	)		(2.8	)		(5.7	)		(5.5	)
Amortization of prior service cost (credit)		0.2			—			0.4			(0.1	)
Amortization of prior service cost														0.2			0.2			0.4			0.4
Amortization of actuarial gain		(0.3	)		(0.5	)		(0.7	)		(1.0	)		(0.5	)		(0.3	)		(1.0	)		(0.7	)
Subtotal		(0.3	)		(1.0	)		(0.5	)		(1.9	)		(0.5	)		(0.3	)		(0.9	)		(0.5	)
Regulatory adjustment		3.7			4.5			7.5			8.9			0.5			3.7			4.1			7.5
Net postretirement benefit cost	$	3.4		$	3.5		$	7.0		$	7.0		$	—		$	3.4		$	3.2		$	7.0

Spire Alabama
Service cost – benefits earned during the period	$	0.3		$	0.1		$	0.5		$	0.2		$	0.3		$	0.3		$	0.6		$	0.5
Interest cost on accumulated postretirement benefit obligation		0.4			0.4			0.7			0.7			0.3			0.4			0.7			0.7
Expected return on plan assets		(1.3	)		(1.2	)		(2.5	)		(2.4	)		(1.3	)		(1.3	)		(2.6	)		(2.5	)
Amortization of prior service (credit) cost		—			(0.1	)		0.1			(0.2	)
Amortization of prior service cost														—			—			0.1			0.1
Subtotal		(0.6	)		(0.8	)		(1.2	)		(1.7	)		(0.7	)		(0.6	)		(1.2	)		(1.2	)
Regulatory adjustment		(0.5	)		(0.5	)		(0.9	)		(0.9	)		(0.4	)		(0.5	)		(0.9	)		(0.9	)
Net postretirement benefit income	$	(1.1	)	$	(1.3	)	$	(2.1	)	$	(2.6	)	$	(1.1	)	$	(1.1	)	$	(2.1	)	$	(2.1	)

Missouri and Alabama state laws provide for the recovery in rates of costs accrued pursuant to GAAP provided that such costs are funded through an independent, external funding mechanism. The Utilities have established Voluntary Employees’ Beneficiary Association (VEBA) and Rabbi Trusts as external funding mechanisms. The assets of the VEBA and Rabbi Trusts consist primarily of money market securities and mutual funds invested in stocks and bonds.

Effective December 23, 2021, the $8.6 allowance for recovery in rates for Spire Missouri’s postretirement benefit plans was discontinued. The difference between no recovery in rates and pension expense as calculated pursuant to the above and that otherwise would be included in the statements of income and statements of comprehensive income is deferred as a regulatory asset or regulatory liability.

The Utilities’ funding policy is to contribute amounts to the trusts equal to the periodic benefit cost calculated pursuant to GAAP as recovered in rates. There have been 0 contributions to the postretirement plans through March 31, ~~2021~~2022 for Spire Missouri or Spire Alabama, and 0ne are expected to be required for the remainder of the fiscal year.

The Company has 2 reportable segments: Gas Utility and Gas Marketing. 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. Other components of the Company’s consolidated information include:

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 ~~and Spire Alabama~~ to Spire Marketing, propane transportation services provided by Spire NGL ~~Inc.~~Inc to Spire Missouri, and ~~propane storage~~natural gas transportation services provided by Spire ~~Missouri~~STL Pipeline to Spire ~~NGL Inc.~~Missouri.

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			Other			Eliminations			Consolidated		Gas Utility		Gas Marketing		Other			Eliminations			Consolidated
Three Months Ended March 31, 2021
Three Months Ended March 31, 2022
Operating Revenues:
Revenues from external customers	$	1,053.0	$	47.4		$	4.5		$	—		$	1,104.9	$	817.4	$	59.4	$	4.1		$	—		$	880.9
Intersegment revenues		0.1		(14.0	)		11.1			2.8			—		—		—		14.0			(14.0	)		—
Total Operating Revenues		1,053.1		33.4			15.6			2.8			1,104.9		817.4		59.4		18.1			(14.0	)		880.9
Operating Expenses:
Natural gas		619.2		(6.2	)		0.1			6.0			619.1		356.0		45.8		—			(9.8	)		392.0
Operation and maintenance		104.0		7.1			11.1			(3.2	)		119.0		104.2		3.2		10.0			(4.2	)		113.2
Depreciation and amortization		49.5		0.3			1.7			0			51.5		56.5		0.4		2.0			—			58.9
Taxes, other than income taxes		56.4		0.5			1.0			0			57.9		70.3		0.4		0.9			—			71.6
Total Operating Expenses		829.1		1.7			13.9			2.8			847.5		587.0		49.8		12.9			(14.0	)		635.7
Operating Income	$	224.0	$	31.7		$	1.7		$	0		$	257.4	$	230.4	$	9.6	$	5.2		$	—		$	245.2
Net Economic Earnings (Loss)	$	159.7	$	39.8		$	(3.9	)	$	0		$	195.6	$	169.2	$	14.4	$	(2.6	)	$	—		$	181.0

	Gas Utility			Gas Marketing			Other			Eliminations			Consolidated		Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended March 31, 2020
Three Months Ended March 31, 2021
Operating Revenues:
Revenues from external customers	$	679.1		$	33.3		$	3.1		$	—		$	715.5	$	1,053.0	$	47.4		$	4.5		$	—		$	1,104.9
Intersegment revenues		(0.1	)		0			11.6			(11.5	)		—		0.1		(14.0	)		11.1			2.8			—
Total Operating Revenues		679.0			33.3			14.7			(11.5	)		715.5		1,053.1		33.4			15.6			2.8			1,104.9
Operating Expenses:
Natural gas		271.6			33.6			0.1			(8.2	)		297.1		619.2		(6.2	)		0.1			6.0			619.1
Operation and maintenance		95.8			3.6			9.6			(3.3	)		105.7		104.0		7.1			11.1			(3.2	)		119.0
Depreciation and amortization		47.0			0.1			2.1			0			49.2		49.5		0.3			1.7			—			51.5
Taxes, other than income taxes		51.7			0.4			0.9			0			53.0		56.4		0.5			1.0			—			57.9
Total Operating Expenses		466.1			37.7			12.7			(11.5	)		505.0		829.1		1.7			13.9			2.8			847.5
Operating Income	$	212.9		$	(4.4	)	$	2.0		$	0		$	210.5	$	224.0	$	31.7		$	1.7		$	—		$	257.4
Net Economic Earnings (Loss)	$	144.3		$	5.1		$	(5.4	)	$	0		$	144.0	$	159.7	$	39.8		$	(3.9	)	$	—		$	195.6

														Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Six Months Ended March 31, 2022
Operating Revenues:
Revenues from external customers														$	1,320.9	$	107.3		$	8.1		$	—		$	1,436.3
Intersegment revenues															—		—			26.6			(26.6	)		—
Total Operating Revenues															1,320.9		107.3			34.7			(26.6	)		1,436.3
Operating Expenses:
Natural gas															566.2		93.8			—			(18.8	)		641.2
Operation and maintenance															211.5		5.9			20.0			(7.8	)		229.6
Depreciation and amortization															111.1		0.7			4.0			—			115.8
Taxes, other than income taxes															107.3		0.4			1.5			—			109.2
Total Operating Expenses															996.1		100.8			25.5			(26.6	)		1,095.8
Operating Income														$	324.8	$	6.5		$	9.2		$	—		$	340.5
Net Economic Earnings (Loss)														$	236.4	$	14.9		$	(7.7	)	$	—		$	243.6

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated		Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Six Months Ended March 31, 2021
Operating Revenues:
Revenues from external customers	$	1,550.2	$	58.1		$	9.2		$	—		$	1,617.5	$	1,550.2	$	58.1		$	9.2		$	—		$	1,617.5
Intersegment revenues		1.1		0.1			23.1			(24.3	)		—		1.1		0.1			23.1			(24.3	)		—
Total Operating Revenues		1,551.3		58.2			32.3			(24.3	)		1,617.5		1,551.3		58.2			32.3			(24.3	)		1,617.5
Operating Expenses:
Natural gas		823.5		(5.5	)		0.1			(17.8	)		800.3		823.5		(5.5	)		0.1			(17.8	)		800.3
Operation and maintenance		207.0		10.4			19.7			(6.5	)		230.6		207.0		10.4			19.7			(6.5	)		230.6
Depreciation and amortization		98.1		0.6			3.6			0			102.3		98.1		0.6			3.6			—			102.3
Taxes, other than income taxes		91.9		0.7			1.4			0			94.0		91.9		0.7			1.4			—			94.0
Total Operating Expenses		1,220.5		6.2			24.8			(24.3	)		1,227.2		1,220.5		6.2			24.8			(24.3	)		1,227.2
Operating Income	$	330.8	$	52.0		$	7.5		$	0		$	390.3	$	330.8	$	52.0		$	7.5		$	—		$	390.3
Net Economic Earnings (Loss)	$	236.1	$	43.1		$	(6.7	)	$	0		$	272.5	$	236.1	$	43.1		$	(6.7	)	$	—		$	272.5

	Gas Utility		Gas Marketing			Other			Eliminations			Consolidated
Six Months Ended March 31, 2020
Operating Revenues:
Revenues from external customers	$	1,209.7	$	65.6		$	7.1		$	—		$	1,282.4
Intersegment revenues		0		0			18.7			(18.7	)		—
Total Operating Revenues		1,209.7		65.6			25.8			(18.7	)		1,282.4
Operating Expenses:
Natural gas		513.1		58.1			0.2			(12.4	)		559.0
Operation and maintenance		204.4		6.7			17.5			(6.3	)		222.3
Depreciation and amortization		93.4		0.1			3.2			0			96.7
Taxes, other than income taxes		89.6		0.7			1.3			0			91.6
Total Operating Expenses		900.5		65.6			22.2			(18.7	)		969.6
Operating Income	$	309.2	$	0		$	3.6		$	0		$	312.8
Net Economic Earnings (Loss)	$	213.4	$	11.2		$	(8.8	)	$	0		$	215.8

The following table reconciles the Company’s net economic earnings to net income. ~~For information about the Missouri regulatory adjustment for $9.0 of pension costs in fiscal 2021 and the provision for ISRS rulings in fiscal 2020, see~~ ~~Note 4, Regulatory Matters.~~

	Three Months Ended March 31,						Six Months Ended March 31,						Three Months Ended March 31,						Six Months Ended March 31,
	2021			2020			2021			2020			2022			2021			2022		2021
Net Income	$	187.4		$	133.6		$	276.3		$	200.6		$	173.6		$	187.4		$	229.3	$	276.3
Adjustments, pre-tax:
Missouri regulatory adjustment		(9.0	)		0			(9.0	)		0			—			(9.0	)		—		(9.0	)
Provision for ISRS rulings		0			2.2			0			4.8
Fair value and timing adjustments		20.1			11.6			4.1			15.3			9.9			20.1			13.6		4.1
Income tax effect of adjustments		(2.9	)		(3.4	)		1.1			(4.9	)
Income tax adjustments														(2.5	)		(2.9	)		0.7		1.1
Net Economic Earnings	$	195.6		$	144.0		$	272.5		$	215.8		$	181.0		$	195.6		$	243.6	$	272.5

	March 31,			September 30,			March 31,			March 31,			September 30,			March 31,
	2021			2020			2020			2022			2021			2021
Total Assets:
Gas Utility	$	7,265.0		$	6,716.2		$	6,311.6		$	7,684.1		$	7,615.4		$	7,265.0
Gas Marketing		341.0			182.7			159.3			431.1			466.1			341.0
Other		2,513.7			2,443.5			2,214.7			2,543.8			2,351.7			2,513.7
Eliminations		(1,182.9	)		(1,101.2	)		(667.6	)		(1,257.7	)		(1,076.8	)		(1,182.9	)
Total Assets	$	8,936.8		$	8,241.2		$	8,018.0		$	9,401.3		$	9,356.4		$	8,936.8

The Company and the Utilities have entered into contracts with various counterparties, expiring on dates through 2039, for the storage, transportation, and supply of natural gas. Minimum payments required under the contracts in place at March 31, ~~2021,~~2022, are estimated at ~~$1,632.2, $1,264.6,~~$1,972.1, $1,310.2, and ~~$244.7~~$554.6 for the Company, Spire Missouri, and Spire Alabama, respectively. Additional contracts are generally entered into prior to or during the heating season of November through April. The Utilities recover their costs from customers in accordance with their PGA clauses or GSA riders.

The Company and the Utilities account for contingencies, including environmental liabilities, in accordance with accounting standards under the loss contingency guidance of ASC Topic 450, Contingencies, when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

In addition to matters noted below, the Company and the Utilities are involved in other litigation, claims, and investigations arising in the normal course of business. Management, after discussion with counsel, believes the final outcome will not have a material effect on the statements of income, balance sheets, and statements of cash flows of the Company, Spire Missouri, or Spire Alabama. However, there is uncertainty in the valuation of pending claims and prediction of litigation results.

The Company and the Utilities 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 or Utilities’ financial position and results of operations. As environmental laws, regulations, and their interpretations change, the Company or the Utilities may incur additional environmental liabilities that may result in additional costs, which may be material.

In the natural gas industry, many gas distribution companies have incurred environmental liabilities associated with sites they or their predecessor companies formerly owned or operated where manufactured gas operations took place. The Utilities each have former manufactured gas plant (MGP) operations in their respective service territories, some of which are discussed under the Spire Missouri and Spire Alabama headings below. To the extent costs are incurred associated with environmental remediation activities, the Utilities would request authority from their respective regulators to defer such costs (less any amounts received from insurance proceeds or as contributions from other potentially responsible parties (PRPs)) and collect them through future rates.

To date, costs incurred for all Spire MGP sites for investigation, remediation, and monitoring have not been material. However, the amount of costs relative to future remedial actions at these and other sites is unknown and may be material. The actual future costs that Spire Missouri and Spire Alabama may incur could be materially higher or lower depending upon several factors, including whether remediation will be required, final selection and regulatory approval of any remedial actions, changing technologies and government regulations, the ultimate ability of other PRPs to pay, and any insurance recoveries.

In 2020, Spire retained an outside consultant to conduct probabilistic cost modeling of its former MGP sites in Missouri and Alabama. The purpose of this analysis was to develop an estimated range of probabilistic future liability for each of their MGP sites. That analysis, completed in March 2021, provided a range of demonstrated possible future expenditures to investigate, monitor and remediate the former MGP sites. Spire Missouri and Spire Alabama have recorded their best estimates of the probable expenditures that relate to these matters. The amount remains immaterial, and Spire Missouri, Spire Alabama, and the Company do not expect potential liabilities that may arise from remediating these sites to have a material impact on their future financial condition or results of operations.

Spire Missouri has identified 3 former MGP sites in the city of St. Louis, Missouri (the “City”) where costs have been incurred and claims have been asserted. Spire Missouri has enrolled 2 of the sites in the Missouri Department of Natural Resources ~~(MDNR)~~(MoDNR) Brownfields/Voluntary Cleanup Program (BVCP). The third site is the result of ~~a relatively new claim~~an assertion by the United States Environmental Protection Agency (EPA).

In conjunction with redevelopment of ~~one of~~ the ~~sites,~~Carondelet Coke site, Spire Missouri and another former owner of the site entered into an agreement (the “Remediation Agreement”) with the City development agencies, the developer, and an environmental consultant that obligates one of the City agencies and the environmental consultant to remediate the site and obtain a No Further Action (NFA) letter from the ~~MDNR.~~MoDNR. The Remediation Agreement also provides for a release of Spire Missouri and the other former site owner from certain liabilities related to the past and current environmental condition of the site and requires the developer and the environmental consultant to maintain certain insurance coverage, including remediation cost containment, premises pollution liability, and professional liability. The operative provisions of the Remediation Agreement were triggered on December 20, 2010, on which date Spire Missouri and the other former site owner, as full consideration under the Remediation Agreement, paid a small percentage of the cost of remediation of the site. The property was divided into seven parcels, and MoDNR NFA letters have been received for six of the parcels. Remediation is ongoing on the last parcel.

~~Spire Missouri has not owned the second site for many years.~~ In a letter dated June 29, 2011, the Attorney General for the State of Missouri informed Spire Missouri that the ~~MDNR~~MoDNR had completed an investigation of the ~~site.~~second site, Station A. The Attorney General requested that Spire Missouri participate in the follow up investigations of the site. In a letter dated January 10, 2012, Spire Missouri stated that it would participate in future environmental response activities at the site in conjunction with other ~~PRPs that are willing to contribute to such efforts in a meaningful and equitable fashion.~~PRPs. Accordingly, Spire Missouri entered into a cost sharing agreement for remedial investigation with other PRPs. ~~To date, MDNR has not~~MoDNR never approved the agreement, so no remedial investigation ~~has not yet occurred.~~took place.

Additionally, in correspondence dated November 30, 2016, Region 7 of the EPA has asserted that Spire Missouri is liable under Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) for alleged coal gas waste contamination at a third site, ~~in the northern portion of the City on which Spire Missouri operated a MGP. Spire Missouri has not owned or operated the site (also known as~~ Station ~~“B”) for over 70 years.~~B. Spire Missouri and the site owner ~~have met with the EPA and reviewed its assertions. Both Spire Missouri and the site owner have~~ notified the EPA that information and data provided by the EPA to date does not rise to the level of documenting a threat to the public health or environment. As such, in March 2017 Spire Missouri requested more information from the ~~EPA, some of which would also be utilized to identify other former owners and operators of the site that could be added as PRPs. To date,~~EPA. Spire Missouri ~~has not~~never received a response from the EPA.

Spire Missouri has notified its insurers that it seeks reimbursement for costs incurred in the past and future potential liabilities associated with these MGP sites. While some of the insurers have denied coverage and reserved their rights, Spire Missouri retains the right to seek potential reimbursements from them.

On March 10, 2015, Spire Missouri received a Section 104(e) information request under CERCLA from EPA Region 7 regarding the former Thompson Chemical/Superior Solvents site in the City. In turn, Spire Missouri issued a Freedom of Information Act (FOIA) request to the EPA on April 3, 2015, ~~in an effort~~ to identify the basis of the inquiry. The FOIA response from the EPA was received on July 15, 2015, and a response was provided to the EPA on August 15, 2015. Spire Missouri has received no further inquiry from the EPA regarding this matter.

In its western service area, Spire Missouri has 6 owned MGP sites enrolled in the BVCP, including Joplin MGP #1, St. Joseph MGP #1, Kansas City Coal Gas Station B, Kansas City Station A Railroad area, Kansas City Coal Gas Station A, and Independence MGP #2. Source removal has been conducted at all of the owned sites since 2003 with the exception of Joplin. On September 15, 2016, a request was made with the ~~MDNR~~MoDNR for a restrictive covenant use limitation with respect to Joplin. Remediation efforts at the six sites are at various stages of completion, ranging from groundwater monitoring and sampling following source removal activities to the aforementioned request ~~in respect to Joplin.~~for the Joplin site. As part of its participation in the BVCP, Spire Missouri communicates regularly with the ~~MDNR~~MoDNR with respect to its remediation efforts and monitoring activities at these sites. On May 11, 2015, ~~MDNR~~MoDNR approved the next phase of investigation at the Kansas City Station A ~~and~~ Railroad ~~areas.~~area.

Spire Alabama is in the chain of title of 9 former MGP sites, 4 of which it still owns, and 5 former manufactured gas distribution sites, 1 of which it still owns.

In 2012, Spire Alabama responded to an EPA Request for Information Pursuant to Section 104 of CERCLA relating to the 35th Avenue Superfund Site located in North Birmingham, Jefferson County, Alabama. Spire Alabama was identified as a PRP under CERCLA for the cleanup of the site or costs the EPA incurs in cleaning up the site. At this point, Spire Alabama has not been provided information that would allow it to determine the extent, if any, of its potential liability with respect to the 35th Avenue Superfund Site and vigorously denies its inclusion as a PRP.

In addition to those discussed above for Spire Missouri and Spire Alabama, Spire is aware of the following contingent matters.

Spire Marketing, along with many natural gas industry participants, faced the unprecedented effects of ~~the~~Winter Storm Uri in February ~~2021 cold weather event.~~2021. Numerous natural gas producers and midstream operators were unable to deliver natural gas to market as they experienced wellhead freeze-offs, power outages and equipment failure ~~from~~due to the extreme weather. These events resulted in supply curtailments, and related notices of force majeure to excuse performance, from and to certain counterparties. Further, these events have made Spire Marketing subject to various commercial disputes (including regarding force majeure) and a regulatory dispute regarding tariff obligations as a shipper on an interstate pipeline. As such, Spire Marketing has recorded an estimate of potential liabilities for damages based on communications with counterparties to date and the facts and circumstances surrounding each transaction. It is expected that the estimate will change as new facts emerge or settlements are reached, and it is possible that final settlement amounts may materially differ from the current estimate.

In February 2018, the Company was made aware of a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by the South Alabama Center for Fair Housing and the National Community Reinvestment Coalition. The complaint alleged that Spire Gulf discriminated against unspecified residents of Eight Mile, Alabama, on the basis of race in violation of the Fair Housing Act by failing to adequately address the odorant release that occurred in 2008. On December 2, 2020, HUD issued a determination that found no reasonable cause exists that Spire Gulf discriminated against residents in Eight Mile, Alabama.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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.” ~~The subsidiaries of Spire EnergySouth are Spire Gulf and Spire Mississippi.~~ 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:

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.

The Company has two reportable segments: Gas Utility and Gas Marketing. Nearly all of Spire’s earnings are derived from its Gas Utility segment, which reflects the regulated activities of the Utilities. Due to the seasonal nature of the Utilities’ business and the 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.

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.

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~~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.

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.

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 ~~across~~throughout the ~~central and southern~~ U.S. 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.

Spire STL Pipeline is a wholly owned subsidiary of Spire which owns and operates a 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. The pipeline is under the jurisdiction of the FERC and is ~~capable of delivering up~~currently permitted to ~~400,000 million British thermal units (MMBtu) per day of~~deliver natural gas supply into eastern ~~Missouri.~~Missouri under a temporary certificate authorization. Spire STL Pipeline’s operating revenue is derived primarily from Spire Missouri ~~is the~~as its foundation ~~shipper with a contractual commitment of 350,000 MMBtu per day. The pipeline was primarily constructed during fiscal 2019 and was placed into service in November 2019.~~shipper.

Spire Storage is engaged in the storage of natural gas in the western region of the United States. The facility consists of two storage fields operating under one FERC market-based rate tariff.

The outbreak of ~~the novel~~ coronavirus disease 2019 (COVID-19) has adversely impacted economic activity and conditions worldwide. We are continuing to assess the developments involving our workforce, customers and suppliers, as well as the response of federal and state authorities, our regulators and other business and community leaders. The Company has implemented what we believe to be appropriate procedures and protocols to ensure the safety of our customers, suppliers and employees. These actions include activating incident management procedures, work-from-home for our office-based employees, limiting direct contact with our customers, and suspending disconnections and late payment fees for our utility customers for several months in 2020.

~~We have experienced impacts~~Impacts on our results of operations from COVID-19 ~~including:~~

~~Spire Missouri received an Accounting Authority Order from the MoPSC to defer certain costs through March 31, 2021,~~have been minimal, partly as a result of regulatory recovery mechanisms and has recorded a related net regulatory asset of $3.4 and $3.8 as of March 31, 2021, and September 30, 2020, respectively. Even with the cost increases and lost revenues, Spire Alabama exceeded the allowed return and recorded a Rate Stabilization and Equalization giveback in September 2020 and in January 2021, so there was no bottom-line impact of these COVID-19 effects.

An extended slowdown of the United States' economy, changes in commodity costs and/or significant changes in policy and regulation could result in lower demand for natural gas as well as negatively impact the ability of our customers, contractors, suppliers and other business partners to remain in business or return to operating health. These could have a material adverse effect on our results of operations, financial condition, liquidity and prospects.approvals.

The Company is participating in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provisions allowing for a payroll tax deferral which ~~does~~did not have an impact on our results of operations but ~~defers~~deferred the payment of the Company’s portion of certain payroll taxes until ~~later~~late in fiscal 2021 and 2022. Although the Company does not currently expect to seek relief under any other CARES Act provisions, we will continue to monitor all pending and future federal, state and local efforts related to the COVID-19 health crisis and assess our need and, as applicable, eligibility for any such relief.

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 are non-GAAP measures that exclude from net income the 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. In addition, net economic earnings per share would exclude the impact, in the fiscal year of issuance, of any shares issued to finance acquisitions that have yet to be included in net economic earnings.

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:

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.

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.

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

																Gas Utility			Gas Marketing			Other			Total			Per Diluted Common Share**
Three Months Ended March 31, 2022
Net Income (Loss) [GAAP]																$	169.2		$	7.0		$	(2.6	)	$	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		$	(2.6	)	$	181.0		$	3.42
	Gas Utility			Gas Marketing			Other			Total			Per Diluted Common Share**
Three Months Ended March 31, 2021
Net Income (Loss) [GAAP]	$	166.4		$	24.9		$	(3.9	)	$	187.4		$	3.55		$	166.4		$	24.9		$	(3.9	)	$	187.4		$	3.55
Adjustments, pre-tax:
Missouri regulatory adjustments		(9.0	)		—			—			(9.0	)		(0.17	)
Missouri regulatory adjustment																	(9.0	)		—			—			(9.0	)		(0.17	)
Fair value and timing adjustments		0.2			19.9			—			20.1			0.39			0.2			19.9			—			20.1			0.39
Income tax effect of adjustments*		2.1			(5.0	)		—			(2.9	)		(0.06	)
Income tax adjustments*																	2.1			(5.0	)		—			(2.9	)		(0.06	)
Net Economic Earnings (Loss) [Non-GAAP]	$	159.7		$	39.8		$	(3.9	)	$	195.6		$	3.71		$	159.7		$	39.8		$	(3.9	)	$	195.6		$	3.71

Three Months Ended March 31, 2020
Net Income (Loss) [GAAP]	$	142.3		$	(3.3	)	$	(5.4	)	$	133.6		$	2.54
Adjustments, pre-tax:
Provision for ISRS rulings		2.2			—			—			2.2			0.04
Fair value and timing adjustments		0.4			11.2			—			11.6			0.23
Income tax effect of adjustments*		(0.6	)		(2.8	)		—			(3.4	)		(0.06	)
Net Economic Earnings (Loss) [Non-GAAP]	$	144.3		$	5.1		$	(5.4	)	$	144.0		$	2.75

Note: In the following discussion, all references to earnings (loss) per share and net economic earnings per share refer to earnings (loss) per diluted common share and net economic earnings (loss) per diluted common share.

Spire had net income of $173.6 for the three months ended March 31, 2022, compared with net income of $187.4 for the three months ended March 31, ~~2021, compared with net income of $133.6 for the three months ended March 31, 2020. Diluted income~~2021. Income per diluted share ~~of $3.55~~was $3.27 for the current ~~year~~ quarter compared to ~~$2.54~~income of $3.55 per diluted ~~income per~~ share for the ~~prior year~~prior-year quarter. The net income ~~growth~~decline of ~~$53.8~~$13.8 was primarily driven by ~~an $28.2 increase~~a $17.9 reduction in the Gas Marketing segment, ~~and a $24.1 increase~~partly offset by $2.8 improved performance in the Gas Utility ~~segment. The Gas Marketing~~segment and a $1.3 increase was the result of higher current year volume and margins, as a result of extreme weather and market conditions, as well as the monetization of storage positions. Gas Utility net income growth reflects the benefit of the Missouri Supreme Court ruling that partially reversed 2018 rate case pension cost disallowances totaling $9.0 ($6.8 after-tax), combined with higher volumes and ISRS revenues, and lower operating costs after removing the impact of the $19.1 transfer of year-over-year mix of service and nonservice postretirement benefit costs to other expense below the operating income line (the “Nonservice Cost Transfer”).in Other.

Spire’s net economic earnings for the second quarter were $181.0 ($3.42 per diluted share), compared to $195.6 ($3.71 per diluted share) ~~for the three months ended March 31, 2021, an increase of $51.6 from the $144.0 ($2.75 per diluted share) reported for the same period~~ in the prior ~~year. The principal drivers of the increase in net economic~~year, reflecting lower earnings ~~were higher~~at Gas Marketing, ~~results combined with higher~~partly offset by stronger performance in Gas Utility ~~earnings, as reflected in the above table.~~and Other. These impacts are described in further detail below.

~~For the three months ended March 31, 2021, net~~Net economic earnings for the Gas Utility segment increased ~~$15.4~~$9.5 from the second quarter of the prior fiscal year, ~~primarily due to a $9.9 increase~~driven by $11.8 growth at Spire Missouri, ~~and a $5.5 increase at Spire Alabama. Both Spire Missouri and~~while Spire Alabama ~~benefited from volume~~and the subsidiaries of Spire EnergySouth (together, the “Southeast Utilities”) decreased $0.9 and $1.4, respectively, versus the prior-year quarter. Spire Missouri’s growth was primarily driven by rate increases ~~and higher off-system sales. Spire Missouri also benefited from higher ISRS revenues, customer growth, and lower Operations and Maintenance expense (O&M) after removing~~that became effective in late December 2021, the ~~impact~~result of the ~~Nonservice Cost Transfer, offset by $1.7~~2021 rate case. The decline on the Southeast Utilities was primarily the result of unseasonably warm weather in the region and higher depreciation and amortization ~~expense. Spire Alabama growth was also favorably impacted by net Rate Stabilization and Equalization (RSE) adjustments and lower O&M that offset higher depreciation and amortization expenses.~~costs. These impacts are discussed in further detail below.

~~For the three months ended March 31, 2021, the~~Fiscal 2022 second quarter net economic earnings for the Gas Marketing segment ~~was $39.8,~~were $14.4, compared to ~~net economic earnings of $5.1 in the three months ended March 31, 2020. The increase in the current-year period was a result of extreme~~$39.8 last year, reflecting less favorable market conditions ~~due to the February 2021 cold weather event as well as asset optimization, including storage.~~that are described in further detail below.

For the three months ended March 31, ~~2021,~~2022, net economic loss ~~for Other~~ decreased ~~$1.5~~$1.3 compared with ~~the second quarter of the prior fiscal year. The improvement~~last year, primarily ~~reflects better~~reflecting improved results ~~from~~at Spire Storage.

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

																Gas Utility			Gas Marketing			Other		Eliminations			Consolidated
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			10.0		(4.2	)		113.2
Depreciation and amortization																	56.5			0.4			2.0		—			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			18.1		(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		$	18.1	$	(14.0	)	$	880.9
	Gas Utility			Gas Marketing			Other			Eliminations			Consolidated
Three Months Ended March 31, 2021
Operating Income [GAAP]	$	224.0		$	31.7		$	1.7		$	—		$	257.4		$	224.0		$	31.7		$	1.7	$	—		$	257.4
Operation and maintenance expenses		104.0			7.1			11.1			(3.2	)		119.0			104.0			7.1			11.1		(3.2	)		119.0
Depreciation and amortization		49.5			0.3			1.7			—			51.5			49.5			0.3			1.7		—			51.5
Taxes, other than income taxes		56.4			0.5			1.0			—			57.9			56.4			0.5			1.0		—			57.9
Less: Gross receipts tax expense		(42.1	)		(0.1	)		—			—			(42.2	)		(42.1	)		(0.1	)		—		—			(42.2	)
Contribution Margin [Non-GAAP]		391.8			39.5			15.5			(3.2	)		443.6			391.8			39.5			15.5		(3.2	)		443.6
Natural gas costs		619.2			(6.2	)		0.1			6.0			619.1			619.2			(6.2	)		0.1		6.0			619.1
Gross receipts tax expense		42.1			0.1			—			—			42.2			42.1			0.1			—		—			42.2
Operating Revenues	$	1,053.1		$	33.4		$	15.6		$	2.8		$	1,104.9		$	1,053.1		$	33.4		$	15.6	$	2.8		$	1,104.9

Three Months Ended March 31, 2020
Operating Income (Loss) [GAAP]	$	212.9		$	(4.4	)	$	2.0		$	—		$	210.5
Operation and maintenance expenses		95.8			3.6			9.6			(3.3	)		105.7
Depreciation and amortization		47.0			0.1			2.1			—			49.2
Taxes, other than income taxes		51.7			0.4			0.9			—			53.0
Less: Gross receipts tax expense		(37.6	)		(0.2	)		(0.1	)		—			(37.9	)
Contribution Margin [Non-GAAP]		369.8			(0.5	)		14.5			(3.3	)		380.5
Natural gas costs		271.6			33.6			0.1			(8.2	)		297.1
Gross receipts tax expense		37.6			0.2			0.1			—			37.9
Operating Revenues	$	679.0		$	33.3		$	14.7		$	(11.5	)	$	715.5

Spire reported operating ~~revenue~~revenues of ~~$1,104.9~~$880.9 for the three months ended March 31, ~~2021,~~2022, a ~~$389.4 increase~~$224.0 decrease versus the ~~prior year~~prior-year quarter. ~~Both the~~The Gas Utility ~~and Gas Marketing segments~~segment experienced ~~year-over-year increases~~a quarter-over-quarter decrease of $235.7 in operating revenues. This reduction was only partly offset by the $26.0 increase reported by the Gas Marketing segment. Spire’s contribution margin ~~increased $63.1~~decreased $6.6 compared with last year, ~~with increases~~as a decrease of ~~$40.0~~$25.9 in the Gas Marketing segment ~~$22.0 for~~was only partly offset by the increase experienced by the Gas Utility segment and ~~$1.0 for Other (STL Pipeline and Spire Storage) all contributing to growth.~~Other. Depreciation and amortization expenses were up ~~$2.3 company-wide driven by a $2.5 increase in the~~$7.4 due to continuing Gas Utility ~~segment.~~capital investments. Gas Utility operation and maintenance (O&M) expenses of $104.2 for the quarter were $0.2 higher than last year. Gas Utility O&M ~~expenses of $104.0~~was $4.7 lower after adjusting for the ~~quarter were $10.9 lower than~~$9.0 benefit recorded last year ~~after removing~~of previously disallowed pension expenses relating to the ~~$19.1 impact~~2018 rate case due to a Missouri Supreme Court ruling, the $3.1 transfer of quarter-over-quarter nonservice postretirement benefit costs to other expense below the ~~Nonservice~~operating income line (the “Nonservice Cost ~~Transfer.~~Transfer”) and the reversal of $1.0 of Spire Missouri non-operational overheads charged to O&M during the first quarter of 2022 that are now deferred. These impacts are described in further detail below.

Operating Revenues – Gas Utility operating revenues for the three months ended March 31, ~~2021,~~2022, were ~~$1,053.1,~~$817.4, or ~~$374.1 higher~~$235.7 lower than the same period in the prior year. The ~~increase~~decrease in Gas Utility operating revenues was attributable to the following factors:

Spire Missouri and Spire Alabama – Higher PGA/GSA costs	$	208.0
Spire Missouri – OFO charges			$	(195.8	)
Spire Missouri and Spire Alabama – Off-system sales and capacity release		95.5		(93.5	)
Spire Missouri and Spire Alabama – Volumetric usage (net of weather mitigation)		49.6		(17.2	)
Spire Missouri – ISRS (including prior year ISRS rulings provision true-up of $2.2)		6.6
Spire Missouri and Spire Alabama – Higher gross-receipt taxes		4.3
Spire Missouri and Spire Alabama – Higher PGA/GSA costs (gas cost recovery)				34.3
Spire Missouri – 2021 rate case outcomes				24.7
Spire Missouri – Higher gross receipts taxes				10.4
Spire Alabama – RSE adjustments, net		4.1		2.5
All other factors		6.0		(1.1	)
Total Variation	$	374.1	$	(235.7	)

The increase in revenues was primarily driven by higher gas volumes resulting in $208.0 higher gas costs (including $195.8 of cover charges and OFO penalties to certain wholesale customers), a $95.5 increase in off-system sales and capacity release (relating primarily toprior year Gas Utility results included benefits that resulted from the February 2021 cold weather ~~event), $49.6 positive impact of~~event (“Winter Storm Uri”). As a result, current year second quarter revenues were $235.7 below the prior-year quarter. Key drivers included $195.8 in cover charges and Operational Flow Order (OFO) penalties to certain wholesale customers at Spire Missouri in the prior year. Off-system sales in the current-year quarter were $93.5 lower than the prior year, with the prior year benefiting from historically high off-system sales relating primarily to Winter Storm Uri. Weather patterns in the prior year drove higher volumetric usage, contributing to a $17.2 quarter-over-quarter revenue decline. These negative impacts were only partly offset by $34.3 in higher gas cost recoveries in the current year, a $24.7 increase resulting from ~~colder weather versus~~Spire Missouri’s 2021 rate order that went into effect late in the ~~prior~~first quarter of this year, ~~primarily~~$10.4 of higher gross-receipt taxes at Spire ~~Missouri. The Utility segment also benefited from $6.6 growth in ISRS revenues (including the impact of reversing a prior-year charge of $2.2 related to the ISRS ruling settled later in the year),~~Missouri, and ~~$4.1~~$2.5 in net ~~positive~~rate adjustments under the RSE ~~adjustments~~mechanism at Spire Alabama.

Contribution Margin – Gas Utility contribution margin was ~~$391.8~~$409.5 for the three months ended March 31, ~~2021,~~2022, a ~~$22.0~~$17.7 increase over the same period in the prior year. The increase was attributable to the following factors:

Spire Missouri – 2021 rate case outcomes			$	24.7
Spire Alabama – Rate adjustment under RSE mechanism, net				2.3
Spire Missouri and Spire Alabama – Volumetric usage (net of weather mitigation)	$	7.3		(4.3	)
Spire Missouri – ISRS (including prior year ISRS rulings provision true-up of $2.2)		6.6
Spire Alabama – RSE adjustments, net		4.3
Spire Missouri and Spire Alabama – Off-system sales and capacity release		2.1		(2.2	)
All other factors		1.7		(2.8	)
Total Variation	$	22.0	$	17.7

~~The~~Quarter-over-quarter contribution growth was driven by the $24.7 increase ~~in contribution margin was primarily attributable to $7.3 favorable weather/volumetric impacts,~~from the previously mentioned rate increases at Spire ~~Missouri’s net ISRS amounts (including $2.2 prior-year true-up of charges for ISRS rulings) of $6.6, combined with $4.3~~Missouri and $2.3 net favorable rate adjustments under the RSE ~~adjustments~~mechanism at Spire ~~Alabama,~~Alabama. These positive impacts were only partly offset by decreases resulting from volumetric usage and ~~$2.1 higher~~lower off-system sales ~~primarily due to the February 2021 cold weather events when compared to warmer temperatures last year.~~of $4.3 and $2.2, respectively.

Operating Expenses – O&M expenses for the three months ended March 31, ~~2021~~2022, were ~~$1.9 lower~~$0.2 higher than the prior ~~year after~~year. After removing the ~~$19.1~~$3.1 impact of the Nonservice Cost Transfer, $1.0 of non-operational overheads mentioned earlier, and ~~the reversal of~~last year’s $9.0 ~~of previously disallowed pension expenses relating to the 2018~~ rate case ~~due to a recent~~refund ruling by the Missouri Supreme Court, ~~ruling.~~expenses decreased $4.7. The decrease was largely due to lower ~~costs in operations, administrative~~employee-related expenses, and ~~employee-related expenses.~~lower bad debt expense. Depreciation and amortization expenses for the ~~three months ended March 31, 2021,~~fiscal 2022 second quarter were ~~$2.5~~$7.0 higher than the same period in the prior year primarily driven by continued infrastructure capital expenditures across all the Utilities.

Operating Revenues – Operating revenues increased ~~$0.1~~$26.0 versus the prior-year period as higher ~~retail volumes and higher~~ commodity prices ~~were mostly offset by adjustments for certain retail customers.~~and a lower proportion of total current year sales attributable to trading activities (trading revenues are netted against trading costs) all contributed to the growth over prior-year quarter.

Contribution Margin – Gas Marketing contribution margin during the ~~three months~~quarter ended March 31, ~~2021, increased $48.7~~2022, decreased $25.9 from the same period in the prior ~~year. After consideration~~year, due principally to the benefit from the prior-year quarter that resulted from Winter Storm Uri totaling $23.8 (net of ~~$8.7 unfavorable change in derivative activity and fair value measurements which are excluded from net economic earnings, the reported variance was a $40.0 increase versus the same quarter~~2021 commercial claims that were resolved in the ~~prior~~second quarter of fiscal 2022). Current year ~~reflecting value realized from~~margin was negatively impacted by lower storage ~~positions.~~and wholesale/retail margins, driven by tighter spreads, higher demand charges and tighter geographic location spreads. These impacts were ~~magnified due to the February 2021 cold weather event.~~only partly offset by $10.0 favorable mark-to-market adjustments on open derivative positions.

Spire Marketing, along with many natural gas industry participants, faced the unprecedented effects of the February 2021 cold weather event. Numerous natural gas producers and midstream operators were unable to deliver natural gas to market as they experienced wellhead freeze-offs, power outages and equipment failure from the extreme weather. These events resulted in supply curtailments, and related notices of force majeure to excuse performance, from and to certain counterparties. Further, these events have made Spire Marketing subject to various commercial disputes (including regarding force majeure) and a regulatory dispute regarding tariff obligations as a shipper on an interstate pipeline. As such, Spire Marketing has recorded an estimate of potential liabilities for damages based on communications with counterparties to date and the facts and circumstances surrounding each transaction. It is expected that the estimate will change as new facts emerge or settlements are reached, and it is possible that final settlement amounts may materially differ from the current estimate.

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

Spire had net income of $173.6 for the three months ended March 31, ~~2021, decreased~~2022, compared with net income of $187.4 for the three months ended March 31, 2021. Income per diluted share was $3.27 for the current quarter compared to income of $3.55 per diluted share for the prior-year quarter. The net income decline of $13.8 was primarily driven by ~~$1.4 from~~a $17.9 reduction in the ~~same period~~Gas Marketing segment, partly offset by $2.8 improved performance in the Gas Utility segment and a $1.3 increase in Other.

Spire’s net economic earnings for the second quarter were $181.0 ($3.42 per diluted share), compared to $195.6 ($3.71 per diluted share) in the prior year, ~~principally due~~reflecting lower earnings at Gas Marketing, partly offset by stronger performance in Gas Utility and Other. These impacts are described in further detail below.

Net economic earnings for the Gas Utility segment increased $9.5 from the second quarter of the prior fiscal year, driven by $11.8 growth at Spire Missouri, while Spire Alabama and the subsidiaries of Spire EnergySouth (together, the “Southeast Utilities”) decreased $0.9 and $1.4, respectively, versus the prior-year quarter. Spire Missouri’s growth was primarily driven by rate increases that became effective in late December 2021, the result of the 2021 rate case. The decline on the Southeast Utilities was primarily the result of unseasonably warm weather in the region and higher depreciation and amortization costs. These impacts are discussed in further detail below.

Fiscal 2022 second quarter net economic earnings for the Gas Marketing segment were $14.4, compared to ~~lower rates on short-term borrowings.~~ $39.8 last year, reflecting less favorable market conditions that are described in further detail below.

For the three months ended March 31, ~~2021~~2022, net economic loss decreased $1.3 compared with last year, primarily reflecting improved results at Spire Storage.

Operating Revenues and ~~2020, average short-term borrowings were $626.7~~Expenses and ~~$544.2, respectively, and~~Contribution Margin

Reconciliations of the ~~average interest rates on these borrowings were 0.28% and 2.1%, respectively.~~Company’s contribution margin to the most directly comparable GAAP measure are shown below.

	Gas Utility			Gas Marketing			Other		Eliminations			Consolidated
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			10.0		(4.2	)		113.2
Depreciation and amortization		56.5			0.4			2.0		—			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			18.1		(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		$	18.1	$	(14.0	)	$	880.9

Three Months Ended March 31, 2021
Operating Income [GAAP]	$	224.0		$	31.7		$	1.7	$	—		$	257.4
Operation and maintenance expenses		104.0			7.1			11.1		(3.2	)		119.0
Depreciation and amortization		49.5			0.3			1.7		—			51.5
Taxes, other than income taxes		56.4			0.5			1.0		—			57.9
Less: Gross receipts tax expense		(42.1	)		(0.1	)		—		—			(42.2	)
Contribution Margin [Non-GAAP]		391.8			39.5			15.5		(3.2	)		443.6
Natural gas costs		619.2			(6.2	)		0.1		6.0			619.1
Gross receipts tax expense		42.1			0.1			—		—			42.2
Operating Revenues	$	1,053.1		$	33.4		$	15.6	$	2.8		$	1,104.9

~~Consolidated income tax~~Spire reported operating revenues of $880.9 for the three months ended March 31, ~~2021, increased $15.8~~2022, a $224.0 decrease versus the ~~same period~~prior-year quarter. The Gas Utility segment experienced a quarter-over-quarter decrease of $235.7 in operating revenues. This reduction was only partly offset by the $26.0 increase reported by the Gas Marketing segment. Spire’s contribution margin decreased $6.6 compared with last year, as a decrease of $25.9 in the ~~prior year. The variance is~~Gas Marketing segment was only partly offset by the increase experienced by the Gas Utility segment and Other. Depreciation and amortization expenses were up $7.4 due to ~~higher pre-tax book income~~continuing Gas Utility capital investments. Gas Utility operation and ~~the mix~~maintenance (O&M) expenses of ~~earnings by source, which results in a higher effective tax rate in the current year.~~

~~Operating revenues~~$104.2 for the ~~three months ended March 31, 2021, increased $333.4 from the same period in the prior year primarily due by~~quarter were $0.2 higher gas volumes resulting in $202.9 higher gas costs (including $195.8 of cover charges and OFO penalties to certain wholesale customers), a $94.3 increase related to higher off-system sales, combined with $24.8 in volumetric impacts (including weather mitigation), higher ISRS revenues of $6.6 and a $2.4 increase in gross receipts taxes.

~~Contribution margin~~than last year. Gas Utility O&M was $4.7 lower after adjusting for the ~~three months ended March 31, 2021, increased $17.2 from the same period in the prior~~$9.0 benefit recorded last year ~~largely due to the $6.8 increase attributable to volumetric impacts (including weather mitigation), combined with the $6.6 increase in ISRS mentioned above and $1.4 higher off-system sales.~~

O&M expenses for the three months ended March 31, 2021, increased $12.0 versus the prior year quarter. After removing the $19.7 year-over-year impact of the Nonservice Cost Transfer, O&M was $7.7 lower than the prior year, largely due to the Missouri Supreme Court ruling in the current quarter that reversed $9.0 of previously disallowed pension expenses relating to the 2018 rate ~~case. Depreciation and amortization increased $1.7 in the current quarter versus the prior-year quarter~~case due to ~~ongoing capital investments.~~

~~Other~~a Missouri Supreme Court ruling, the $3.1 transfer of quarter-over-quarter nonservice postretirement benefit costs to other expense below the operating income ~~was up $21.7, primarily due~~line (the “Nonservice Cost Transfer”) and the reversal of $1.0 of Spire Missouri non-operational overheads charged to due the impact of the Nonservice Cost Transfer. Removing this impact, other income increased $2.0, primarily due to increases in the value of investments associated with non-qualified employee benefit plans reflecting market conditions.

~~Degree days in Spire Missouri’s service areas~~O&M during the ~~three months ended March 31, 2021, were 1.7% warmer than normal, but 10.5% colder than the same period last year, resulting~~first quarter of 2022 that are now deferred. These impacts are described in higher usage on a year-over-year comparative basis. Spire Missouri’s total system therms sold and transported were 772.9 million for the three months ended March 31, 2021, compared with 695.3 million for the same period in the prior year. Total off-system therms sold and transported were 12.8 million for the three months ended March 31, 2021, compared with 9.8 million for the same period last year.further detail below.

Resulting net income for the quarter ended March 31, 2021, increased $18.6 versus the prior-year quarter or $10.1 after removing the after-tax impacts of the $2.2 prior-year true-up of charges for ISRS rulings and $9.0 of previously disallowed pension expense.

~~Operating~~ Gas Utility operating revenues for the three months ended March 31, ~~2021, increased $37.1 from~~2022, were $817.4, or $235.7 lower than the same period in the prior year. The ~~change~~decrease in Gas Utility operating ~~revenue~~revenues was ~~principally due to $24.8~~ attributable to the following factors:

The prior year Gas Utility results included benefits that resulted from the February 2021 cold weather ~~usage impacts, higher gas costs of $5.1,~~event (“Winter Storm Uri”). As a ~~net favorable RSE adjustment of $4.1,~~result, current year second quarter revenues were $235.7 below the prior-year quarter. Key drivers included $195.8 in cover charges and ~~a $1.2 increase~~Operational Flow Order (OFO) penalties to certain wholesale customers at Spire Missouri in ~~off-system sales.~~

~~Contribution margin was $4.8 higher versus~~the prior year. Off-system sales in the current-year quarter were $93.5 lower than the prior year, with the prior year benefiting from historically high off-system sales relating primarily to Winter Storm Uri. Weather patterns in the prior year drove higher volumetric usage, contributing to a $17.2 quarter-over-quarter revenue decline. These negative impacts were only partly offset by $34.3 in higher gas cost recoveries in the current year, a $24.7 increase resulting from Spire Missouri’s 2021 rate order that went into effect late in the first quarter of this year, $10.4 of higher gross-receipt taxes at Spire Missouri, and $2.5 in net rate adjustments under the RSE mechanism at Spire Alabama.

Contribution Margin – Gas Utility contribution margin was $409.5 for the three months ended March 31, 2022, a $17.7 increase over the same period in the prior year. The increase was attributable to the following factors:

Quarter-over-quarter contribution growth was driven by the $24.7 increase from the previously mentioned rate increases at Spire Missouri and $2.3 net favorable ~~net~~rate adjustments under the RSE mechanism at Spire Alabama. These positive impacts were only partly offset by decreases resulting from volumetric usage and ~~annual rate adjustment~~lower off-system sales of $4.3 and ~~a $1.2 increase due to the combined impacts from weather usage impacts (including weather mitigation) and off-system sales.~~$2.2, respectively.

Operating Expenses – O&M expenses for the three months ended March 31, ~~2021 decreased $3.4 ($2.8 after~~2022, were $0.2 higher than the prior year. After removing the $3.1 impact of the Nonservice Cost ~~Transfer) versus~~Transfer, $1.0 of non-operational overheads mentioned earlier, and last year’s $9.0 rate case refund ruling by the ~~prior-year quarter, primarily~~Missouri Supreme Court, expenses decreased $4.7. The decrease was largely due to lower ~~field distribution~~employee-related expenses, and ~~administrative expenses.~~lower bad debt expense. Depreciation and amortization expenses for the ~~three months ended March 31, 2021,~~fiscal 2022 second quarter were ~~$0.6~~$7.0 higher than ~~the same period last year, the result of continued investment in infrastructure upgrades.~~

~~For the quarter ended March 31, 2021, resulting net income increased $5.5 versus the prior-year quarter.~~

As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended March 31, 2021 were 1.4% warmer than normal, but 32.3% colder than a year ago. Spire Alabama’s total system therms sold and transported were 340.3 million for the three months ended March 31, 2021, compared with 320.6 million for the same period in the prior ~~year. The~~year primarily driven by continued infrastructure capital expenditures across all the Utilities.

Operating Revenues – Operating revenues increased $26.0 versus the prior-year period as higher commodity prices and a lower proportion of total current year sales attributable to trading activities (trading revenues are netted against trading costs) all contributed to the growth over prior-year quarter.

Contribution Margin – Gas Marketing contribution margin during the quarter ~~reflects off-system sales, and related therms sold totaled 16.1 million, versus no volume~~ended March 31, 2022, decreased $25.9 from the same period in the prior year, asdue principally to the ~~program had not yet commenced.~~

~~EARNINGS – SIX MONTHS ENDED MARCH 31~~,benefit from the prior-year quarter that resulted from Winter Storm Uri totaling $23.8 (net of 2021 commercial claims that were resolved in the second quarter of fiscal 2022). Current year margin was negatively impacted by lower storage and wholesale/retail margins, driven by tighter spreads, higher demand charges and tighter geographic location spreads. These impacts were only partly offset by $10.0 favorable mark-to-market adjustments on open derivative positions.

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

	Gas Utility			Gas Marketing			Other			Total			Per Diluted Common Share**			Gas Utility			Gas Marketing			Other			Total			Per Diluted Common Share**
Six Months Ended March 31, 2021
Three Months Ended March 31, 2022
Net Income (Loss) [GAAP]	$	242.9		$	40.1		$	(6.7	)	$	276.3		$	5.20		$	169.2		$	7.0		$	(2.6	)	$	173.6		$	3.27
Adjustments, pre-tax:
Missouri regulatory adjustments		(9.0	)		—			—			(9.0	)		(0.18	)
Fair value and timing adjustments		0.1			4.0			—			4.1			0.08			—			9.9			—			9.9			0.20
Income tax effect of adjustments*		2.1			(1.0	)		—			1.1			0.02
Income tax adjustments*																	—			(2.5	)		—			(2.5	)		(0.05	)
Net Economic Earnings (Loss) [Non-GAAP]	$	236.1		$	43.1		$	(6.7	)	$	272.5		$	5.12		$	169.2		$	14.4		$	(2.6	)	$	181.0		$	3.42

Six Months Ended March 31, 2020
Three Months Ended March 31, 2021
Net Income (Loss) [GAAP]	$	209.4		$	—		$	(8.8	)	$	200.6		$	3.77		$	166.4		$	24.9		$	(3.9	)	$	187.4		$	3.55
Adjustments, pre-tax:
Provision for ISRS rulings		4.8			—			—			4.8			0.09
Missouri regulatory adjustment																	(9.0	)		—			—			(9.0	)		(0.17	)
Fair value and timing adjustments		0.4			14.9			—			15.3			0.30			0.2			19.9			—			20.1			0.39
Income tax effect of adjustments*		(1.2	)		(3.7	)		—			(4.9	)		(0.10	)
Income tax adjustments*																	2.1			(5.0	)		—			(2.9	)		(0.06	)
Net Economic Earnings (Loss) [Non-GAAP]	$	213.4		$	11.2		$	(8.8	)	$	215.8		$	4.06		$	159.7		$	39.8		$	(3.9	)	$	195.6		$	3.71

~~Spire’s~~Spire had net income ~~was $276.3~~of $173.6 for the ~~six~~three months ended March 31, ~~2021,~~2022, compared with ~~$200.6~~net income of $187.4 for the ~~six~~three months ended March 31, ~~2020. Basic and~~2021. Income per diluted ~~earnings~~share was $3.27 for the current quarter compared to income of $3.55 per diluted share for the ~~six months ended March 31, 2021, were $5.21 and $5.20 respectively, compared with basic and diluted earnings per share of $3.78 and $3.77, respectively, for the six months ended March 31, 2020.~~

prior-year quarter. The ~~increase in~~ net income decline of ~~$75.7 reflects~~$13.8 was primarily driven by a ~~$40.1 increase~~$17.9 reduction in ~~net income from~~ the Gas Marketing segment, ~~and a $33.5 increase~~partly offset by $2.8 improved performance in ~~net income from~~ the Gas Utility segment ~~combined with a positive net change of $2.1 in Other.~~

The Gas Marketing segment was positively impacted by favorable market conditions totaling $31.9, particularly in February of the current year, that drove volume, higher local/regional basis differentials and higher realized value from storage withdrawals. Gas Marketing also benefited from $10.9 ($8.2 after-tax) in favorable fair value mark-to-market adjustments. The Gas Utility segment is higher due to a $27.2 increase at Spire Missouri and a ~~$6.0~~$1.3 increase ~~at Spire Alabama.~~in Other.

~~Net~~Spire’s net economic earnings for the second quarter were ~~$272.5~~$181.0 ($~~5.12~~3.42 per diluted share), compared to $195.6 ($3.71 per diluted share) for the six months ended March 31, 2021, compared to $215.8 ($4.06 per diluted share) for the same period last year, reflecting earnings improvements in both the Gas Marketing and Gas Utility segments. These variances are discussed in greater detail below.

Gas Utility net income increased by $33.5 from the prior year. The Gas Utility segment is higher due principally to a $13.1 increase in Spire Missouri ISRS revenues (including the impact of a prior-year provision of $4.2 related to the ISRS ruling settled later in the year), the Missouri Supreme Court ruling that partially reversed 2018 rate case pension cost disallowances totaling $9.0 ($6.8 after-tax), $8.4 higher contribution margin due to the impacts of colder weather, $3.0 in net favorable RSE adjustments at Spire Alabama, and lower run-rate operating costs. These positive impacts offset higher depreciation and amortization reflecting increased capital investment.

~~Net economic earnings in the current year were $236.1, an increase of $22.7 over the same period~~ in the prior ~~year. The increase was primarily driven~~year, reflecting lower earnings at Gas Marketing, partly offset by ~~higher contribution margin~~stronger performance in Gas Utility and ~~lower operations and maintenance expense, after adjusting for the Year-To-Date Postretirement Nonservice Cost Transfer.~~Other. These impacts are described in further detail below.

The Gas Marketing segment reported net income of $40.1 for the six months ended March 31, 2021, versus no net income during the same period last year, principally reflecting strong second quarter operating results in the current year, driven by market conditions due to extreme weather that resulted in higher value realization of storage withdrawals. Gas Marketing also benefited from $8.2 in after-tax favorable year-over-year fair value mark-to-market valuations. Net economic earnings for the ~~current year were $43.1, an increase of $31.9~~Gas Utility segment increased $9.5 from the ~~same period~~second quarter of the prior fiscal year, driven by $11.8 growth at Spire Missouri, while Spire Alabama and the subsidiaries of Spire EnergySouth (together, the “Southeast Utilities”) decreased $0.9 and $1.4, respectively, versus the prior-year quarter. Spire Missouri’s growth was primarily driven by rate increases that became effective in late December 2021, the result of the 2021 rate case. The decline on the Southeast Utilities was primarily the result of unseasonably warm weather in the region and higher depreciation and amortization costs. These impacts are discussed in further detail below.

Fiscal 2022 second quarter net economic earnings for the Gas Marketing segment were $14.4, compared to $39.8 last year, asreflecting less favorable market conditions ~~more than offset higher operating costs.~~that are described in further detail below.

For the ~~six~~three months ended March 31, ~~2021,~~2022, net economic loss ~~for Other was $6.7, an improvement from $8.8 in the prior-year period. Included in those~~decreased $1.3 compared with last year, primarily reflecting improved results ~~was a $4.4 reduction in the net loss from~~at Spire ~~Storage, offset by slightly higher corporate and interest costs.~~Storage.

Reconciliations of the Company’s contribution margin to the most directly comparable GAAP measure are shown ~~in the table below:~~below.

	Gas Utility			Gas Marketing			Other			Eliminations			Consolidated			Gas Utility			Gas Marketing			Other		Eliminations			Consolidated
Six Months Ended March 31, 2021
Operating Income (Loss) [GAAP]	$	330.8		$	52.0		$	7.5		$	—		$	390.3
Three Months Ended March 31, 2022
Operating Income [GAAP]																$	230.4		$	9.6		$	5.2	$	—		$	245.2
Operation and maintenance expenses		207.0			10.4			19.7			(6.5	)		230.6			104.2			3.2			10.0		(4.2	)		113.2
Depreciation and amortization		98.1			0.6			3.6			—			102.3			56.5			0.4			2.0		—			58.9
Taxes, other than income taxes		91.9			0.7			1.4			—			94.0			70.3			0.4			0.9		—			71.6
Less: Gross receipts tax expense		(63.8	)		(0.1	)		—			—			(63.9	)		(51.9	)		—			—		—			(51.9	)
Contribution Margin [Non-GAAP]		664.0			63.6			32.2			(6.5	)		753.3			409.5			13.6			18.1		(4.2	)		437.0
Natural gas costs		823.5			(5.5	)		0.1			(17.8	)		800.3			356.0			45.8			—		(9.8	)		392.0
Gross receipts tax expense		63.8			0.1			—			—			63.9			51.9			—			—		—			51.9
Operating Revenues	$	1,551.3		$	58.2		$	32.3		$	(24.3	)	$	1,617.5		$	817.4		$	59.4		$	18.1	$	(14.0	)	$	880.9

Six Months Ended March 31, 2020
Three Months Ended March 31, 2021
Operating Income [GAAP]	$	309.2		$	—		$	3.6		$	—		$	312.8		$	224.0		$	31.7		$	1.7	$	—		$	257.4
Operation and maintenance expenses		204.4			6.7			17.5			(6.3	)		222.3			104.0			7.1			11.1		(3.2	)		119.0
Depreciation and amortization		93.4			0.1			3.2			—			96.7			49.5			0.3			1.7		—			51.5
Taxes, other than income taxes		89.6			0.7			1.3			—			91.6			56.4			0.5			1.0		—			57.9
Less: Gross receipts tax expense		(62.2	)		(0.2	)		(0.1	)		—			(62.5	)		(42.1	)		(0.1	)		—		—			(42.2	)
Contribution Margin [Non-GAAP]		634.4			7.3			25.5			(6.3	)		660.9			391.8			39.5			15.5		(3.2	)		443.6
Natural gas costs		513.1			58.1			0.2			(12.4	)		559.0			619.2			(6.2	)		0.1		6.0			619.1
Gross receipts tax expense		62.2			0.2			0.1			—			62.5			42.1			0.1			—		—			42.2
Operating Revenues	$	1,209.7		$	65.6		$	25.8		$	(18.7	)	$	1,282.4		$	1,053.1		$	33.4		$	15.6	$	2.8		$	1,104.9

~~Spire’s~~Spire reported operating revenues ~~increased~~of $880.9 for the three months ended March 31, 2022, a $224.0 decrease versus the prior-year quarter. The Gas Utility segment experienced a quarter-over-quarter decrease of $235.7 in operating revenues. This reduction was only partly offset by ~~$341.6 at~~the $26.0 increase reported by the Gas Marketing segment. Spire’s contribution margin decreased $6.6 compared with last year, as a decrease of $25.9 in the Gas Marketing segment was only partly offset by the increase experienced by the Gas Utility segment and Other increased by $6.5. These increases more than offset the $7.4 decline in the Gas Marketing segment. The Gas Utility increase was due principally to $182.9 of higher gas costs (including $195.8 of cover charges and OFO penalties to certain wholesale customers), a $94.4 increase in higher off-system sales, and a $41.2 increase due to weather/volumetric impacts (net of weather mitigation). The Gas Utility segment also benefited from higher ISRS revenues at Spire Missouri and a favorable net RSE adjustment at Spire Alabama. The Gas Marketing decrease was due to higher trading activity (trading activities are recorded as revenues net of costs) offsetting higher volumes and prices volumes, while Other reflects an added $4.1 from STL Pipeline which entered service in late calendar 2019 and $2.4 higher revenues at Spire Storage.

Spire’s contribution margin increased $92.4 compared with the same six-month period last year, with all segments reporting increases. The Gas Utility contribution margin increased $29.6, primarily driven by the $24.9 increase from Spire Missouri and the $5.0 increase at Spire Alabama. The $56.3 increase in Gas Marketing reflects very favorable weather conditions in the current year second quarter, combined with favorable fair value mark-to-market adjustments. Higher contribution margins at the STL Pipeline are consistent with its in-service date earlier this year, and Spire Storage’s improvement reflects higher utilization of its storage capacity.

Other. Depreciation and amortization expenses were ~~higher in the~~up $7.4 due to continuing Gas Utility ~~segment, due to~~capital investments. Gas Utility operation and maintenance (O&M) expenses of $104.2 for the quarter were $0.2 higher ~~capital investments in both Spire Missouri and Spire Alabama.~~than last year. Gas Utility O&M was $4.7 lower after adjusting for the $9.0 benefit recorded last year of previously disallowed pension expenses ~~were $2.6 higher in~~relating to the ~~current year driven primarily by the Year-To-Date Postretirement Nonservice Cost Transfer of $18.1. Excluding this adjustment, O&M expenses were lower by $15.5 largely~~2018 rate case due to ~~the~~a Missouri Supreme Court ruling, the $3.1 transfer of quarter-over-quarter nonservice postretirement benefit costs to other expense below the operating income line (the “Nonservice Cost Transfer”) and the reversal of $1.0 of Spire Missouri non-operational overheads charged to O&M during the first quarter of 2022 that ~~partially reversed 2018 rate case pension cost disallowances totaling $9.0.~~are now deferred. These ~~fluctuations~~impacts are described in ~~more~~further detail below.

Operating Revenues –Gas Utility operating revenues for the ~~six~~three months ended March 31, ~~2021,~~2022, were ~~$1,551.3,~~$817.4, or ~~$341.6 higher~~$235.7 lower than the same period ~~last~~in the prior year. The ~~increase~~decrease in Gas Utility operating revenues was attributable to the following factors:

Spire Missouri and Spire Alabama – Higher PGA/GSA costs	$	182.9
Spire Missouri and Spire Alabama – Off -system sales and capacity release		94.4
Spire Missouri – OFO charges			$	(195.8	)
Spire Missouri and Spire Alabama – Off-system sales and capacity release				(93.5	)
Spire Missouri and Spire Alabama – Volumetric usage (net of weather mitigation)		41.2		(17.2	)
Spire Missouri – ISRS (including ISRS rulings prior year true-up)		13.1
Spire Missouri and Spire Alabama – Higher PGA/GSA costs (gas cost recovery)				34.3
Spire Missouri – 2021 rate case outcomes				24.7
Spire Missouri – Higher gross receipts taxes				10.4
Spire Alabama – RSE adjustments, net		2.5		2.5
All other factors		7.5		(1.1	)
Total Variation	$	341.6	$	(235.7	)

The ~~increase~~prior year Gas Utility results included benefits that resulted from the February 2021 cold weather event (“Winter Storm Uri”). As a result, current year second quarter revenues were $235.7 below the prior-year quarter. Key drivers included $195.8 in ~~revenues was driven primarily by a $182.9 increase in gas costs (including $195.8 of~~ cover charges and ~~OFO~~Operational Flow Order (OFO) penalties to certain wholesale ~~customers), a $94.4 increase~~customers at Spire Missouri in the prior year. Off-system sales in the current-year quarter were $93.5 lower than the prior year, with the prior year benefiting from historically high off-system sales ~~and~~relating primarily to Winter Storm Uri. Weather patterns in the prior year drove higher ~~weather/~~volumetric usage, contributing to a $17.2 quarter-over-quarter revenue decline. These negative impacts were only partly offset by $34.3 in higher gas cost recoveries in the current year, a $24.7 increase resulting from Spire Missouri’s 2021 rate order that went into effect late in the first quarter of ~~$41.2. The segment also benefited from a $13.1 increase~~this year, $10.4 of higher gross-receipt taxes at Spire Missouri, ~~ISRS (net of ISRS ruling provision),~~ and ~~by a~~ $2.5 ~~increase due to~~in net rate adjustments under the RSE mechanism at Spire ~~Alabama’s RSE rate renewal.~~Alabama.

Contribution Margin – Gas Utility contribution margin was ~~$664.0~~$409.5 for the ~~six~~three months ended March 31, ~~2021,~~2022, a ~~$29.6~~$17.7 increase over the same period ~~last~~in the prior year. The increase was attributable to the following factors:

Spire Missouri – ISRS (including ISRS rulings prior year true-up)	$	13.1
Spire Missouri – 2021 rate case outcomes			$	24.7
Spire Alabama – Rate adjustment under RSE mechanism, net				2.3
Spire Missouri and Spire Alabama – Volumetric usage (net of weather mitigation)		8.4		(4.3	)
Spire Alabama – RSE adjustments, net		3.0
Spire Missouri and Spire Alabama – Off-system sales and capacity release		2.2		(2.2	)
All other factors		2.9		(2.8	)
Total Variation	$	29.6	$	17.7

~~The~~Quarter-over-quarter contribution ~~margin~~growth was driven by the $24.7 increase ~~resulted primarily~~ from the previously mentioned rate increases at Spire Missouri ~~ISRS (net~~and $2.3 net favorable rate adjustments under the RSE mechanism at Spire Alabama. These positive impacts were only partly offset by decreases resulting from volumetric usage and lower off-system sales of ~~ISRS ruling provisions), higher volumetric margins, Spire Alabama RSE adjustment impacts~~$4.3 and ~~higher off-system sales.~~$2.2, respectively.

Operating Expenses – ~~Gas Utility~~ O&M expenses ~~increased $2.6 from last~~for the three months ended March 31, 2022, were $0.2 higher than the prior year. ~~Removing~~After removing the ~~Year-To-Date Postretirement~~$3.1 impact of the Nonservice Cost Transfer, ~~the year-over-year variance is a decrease~~$1.0 of ~~$15.5. Of this decrease,~~non-operational overheads mentioned earlier, and last year’s $9.0 ~~is attributable to~~rate case refund ruling by the Missouri Supreme Court, ~~ruling that partially reversed 2018 rate case pension cost disallowances.~~expenses decreased $4.7. The ~~remaining~~ decrease ~~of $6.5 is~~was largely due to lower ~~operations~~employee-related expenses, and ~~employee-related costs.~~lower bad debt expense. Depreciation and amortization expenses for the ~~six months ended March 31, 2021, increased $4.7 from~~fiscal 2022 second quarter were $7.0 higher than the same period ~~last~~in the prior year ~~as a result of~~primarily driven by continued ~~levels of~~infrastructure capital ~~investment in excess of depreciation expense.~~expenditures across all the Utilities.

Operating Revenues – ~~Gas Marketing operating~~Operating revenues ~~decreased $7.4 from~~increased $26.0 versus the ~~same~~prior-year period ~~last~~as higher commodity prices and a lower proportion of total current year ~~principally due~~sales attributable to ~~a net reduction in revenue billed~~trading activities (trading revenues are netted against trading costs) all contributed to ~~retail customers.~~the growth over prior-year quarter.

Contribution Margin – Gas Marketing contribution margin during the ~~six~~quarter ended March 31, 2022, decreased $25.9 from the same period in the prior year, due principally to the benefit from the prior-year quarter that resulted from Winter Storm Uri totaling $23.8 (net of 2021 commercial claims that were resolved in the second quarter of fiscal 2022). Current year margin was negatively impacted by lower storage and wholesale/retail margins, driven by tighter spreads, higher demand charges and tighter geographic location spreads. These impacts were only partly offset by $10.0 favorable mark-to-market adjustments on open derivative positions.

Consolidated interest charges increased by $1.7, principally due to higher Gas Utilities long-term debt and higher average short-term borrowings and interest rates in the current-year quarter. For the three months ended March 31, 2021, increased $56.3 from the same period last year, driven principally by strong second quarter results in the current year. During this quarter, particularly the month of February, very favorable weather patterns drove significantly higher regional basis differentials2022 and volume. The current year also benefited from a favorable net $10.9 year-over-year swing in derivative activity and mark-to-market valuations. More discussion of the effects on Gas Marketing of the February 2021, ~~cold weather event and related disputes is included in the corresponding section of “Earnings – Three Months Ended March 31, 2021” above.~~

Consolidated interest charges during the six months ended March 31, 2021, were $2.4 lower than the same period last year. The decrease was primarily driven by slightly lower average short-term interest rates in the current period offsetting the impact of net long-term debt issuances and higher levels of short-term borrowings. For the six months ended March 31, 2021 and 2020, average short-term borrowings were ~~$681.4~~$789.4 and ~~$636.4,~~$626.7, respectively, and the average interest ~~rates~~rate on these borrowings ~~were 0.4%~~was 0.56% and ~~2.1%~~0.28%, respectively.

Consolidated income tax ~~expense during~~for the ~~six~~three months ended March 31, 2021 increased $24.1 versus the prior year. The variance is the result of the higher pre-tax book income in the current year, combined with a higher effective tax rate in the current year due to mix of earnings.

Operating revenues during the six months ended March 31, 2021, increased $314.9 from the same period last year primarily due to a $184.1 increase attributable to higher gas costs, a $92.2 increase due to higher off-system sales, and a $21.2 increase in volumetric impacts (net of weather mitigation) relating to colder weather conditions in the current year. Spire Missouri also benefited from $13.1 higher ISRS (including ISRS rulings provision true-up) and a $1.2 increase due to customer growth.

~~Contribution margin increased $24.9~~2022, decreased $5.3 versus the same period in the prior year. The variance ~~was~~is due principally to the lower pre-tax book income and a slightly favorable effective tax rate resulting from income mix.

Prior year operating revenues results included benefits derived from Winter Storm Uri. As a result, revenues for the three months ended March 31, 2022 were $219.7 below the prior-year quarter. Key drivers were a reduction in gas recovery costs totaling $165.1, primarily the result of $195.8 in cover charges and OFO penalties to certain wholesale customers in the prior year. Off-system sales in the current-year quarter were $92.2 lower than the prior year, with the second quarter of 2021 benefiting from historically high off-system sales relating primarily to Winter Storm Uri. These negative impacts were only partly offset by the $24.7 increase resulting from the rate increases that went into effect late in the first quarter of this year, $10.4 of higher gross-receipt taxes, and a $5.6 increase due to volume (driven by a combination of higher costs and volume).

Contribution margin for the three months ended March 31, 2022, increased $19.5 from the same period in the prior year, largely the result of the $24.7 increase attributable to the previously mentioned ~~$13.1 increase~~rate changes more than offsetting $2.0 lower off-system sales and a $1.9 decrease due volumetric impacts (including weather mitigation).

Reported O&M expenses for the second quarter increased $1.5 versus the prior year. After removing the $2.5 impact of the Nonservice Cost Transfer, $1.0 of non-operational overheads mentioned earlier, and last year’s $9.0 rate case refund ruling by the Missouri Supreme Court, expenses decreased $4.0. The decrease was largely due to lower employee-related expenses and lower bad debt expenses. Depreciation and amortization increased $4.9 versus the prior-year quarter due to ongoing capital investments.

Other expense was higher by $3.2, with $2.5 due to the Nonservice Cost Transfer and most of the remaining variance due to unfavorable fair market value adjustments to unqualified pension trusts.

Resulting net income for the quarter ended March 31, 2022, increased $5.1 versus the prior-year quarter.

Degree days in ~~ISRS, $7.0~~Spire Missouri’s service areas during the three months ended March 31, 2022, were 0.9% colder than normal, and 1.9% colder than the same period last year. Spire Missouri’s total system therms sold and transported were 781.3 million for the quarter, compared with 772.9 million for the same period in the prior year. Total off-system therms sold and transported were 14.7 million for the current quarter, compared with 12.8 million a year ago.

Operating revenues for the three months ended March 31, 2022, decreased $18.5 from the same period in the prior year. The change in operating revenue was principally due to $22.8 attributable to unfavorable weather usage impacts, a decrease in off-system sales totaling $1.3, partly offset by higher ~~volumetric margins,~~gas cost recoveries of $3.6 and net favorable rate adjustments under the RSE mechanism of $2.5.

Contribution margin was $0.3 lower versus the prior-year quarter, primarily driven by $2.4 unfavorable weather/usage and $0.2 lower off-system sales, mostly offset by favorable net rate adjustments under the RSE mechanism of $2.3.

O&M expenses for the three months ended March 31, 2022, decreased $0.8 versus the prior-year quarter, or $0.5 after removing the impact of the Nonservice Cost Transfer. Lower bad debt expense more than offset modest increases in administrative expenses. Depreciation and amortization expenses were up $1.5, the result of ~~colder weather,~~continued investment in infrastructure upgrades.

For the quarter ended March 31, 2022, resulting net income decreased $0.9 versus the prior-year quarter.

As measured in degree days, temperatures in Spire Alabama’s service area during the three months ended March 31, 2022, were 16.2% warmer than normal and ~~$1.2 related~~15.3% warmer than a year ago. Spire Alabama’s total system therms sold and transported were 326.1 million for the three months ended March 31, 2022, compared with 340.3 million for the same period in the prior year. Total off-system therms sold and transported were 0.1 million for the quarter, compared with 16.1 million a year ago.

The following tables reconcile the Company’s net economic earnings to ~~customer growth.~~the most comparable GAAP number, net income.

Spire’s net income was $229.3 for the six months ended March 31, 2022, compared with $276.3 for the six months ended March 31, 2021. Basic and diluted earnings per share for the six months ended March 31, 2022, were both $4.28, compared with basic and diluted earnings per share of $5.21 and $5.20, respectively, for the six months ended March 31, 2021.

The decrease in net income of $47.0 primarily reflects a $35.4 decrease in net income from the Gas Marketing segment and a $10.6 decrease in net income from the Gas Utility segment.

The Gas Marketing segment was negatively impacted by the more favorable market conditions experienced in the prior year, particularly in the month of February that drove volume, higher local/regional basis differentials and higher realized value from storage withdrawals. Results in the current year reflected more normalized market conditions. Gas Marketing net income in the current year was also negatively impacted by unfavorable unrealized fair value mark-to-market adjustments. The Gas Utility segment was lower due to a $6.2 decrease at Spire Missouri, a $2.4 decrease at Spire Alabama, and a $2.0 decrease attributable to the utilities of Spire EnergySouth.

Net economic earnings were $243.6 ($4.56 per diluted share) for the six months ended March 31, 2022, compared to $272.5 ($5.12 per diluted share) for the same period last year, primarily reflecting lower earnings in the Gas Marketing segment that was only partly offset by small increases in the Gas Utility segment. These variances are discussed in greater detail below.

Gas Utility net income decreased by $10.6 from the first half of the prior year. This decrease was driven primarily by the $6.2 reduction at Spire Missouri. Spire Missouri’s results for the current year were negatively impacted by timing of ISRS filings, $8.7 higher depreciation expense, $5.3 higher interest expense resulting from higher levels of long-term debt and higher short-term interest rates, the fact that the prior year included a $9.0 ($6.8 after-tax) benefit from the Missouri Supreme Court ruling that partially reversed 2018 rate case pension cost disallowances, combined with the current year being burdened with a $4.1 income tax expense resulting from the 2021 ~~increased $9.4~~rate order. These negative impacts more than offset the $24.8 increase in contribution margin resulting from the new rates implemented late in the first quarter of 2022. Spire Alabama’s net income declined by $2.4, as $5.5 in net favorable RSE adjustments were offset by a $3.6 reduction in contribution relating to volume/usage and lower off-system sales, $3.0 in higher depreciation expense, higher property taxes and lower miscellaneous income.

Net economic earnings in the first six months of fiscal 2022 were $236.4, an increase of $0.3 over the corresponding period in the prior year. The $4.7 increase at Spire Missouri was mostly offset by the $4.4 decline experienced by the Southeast Utilities. These impacts are described in further detail below.

The Gas Marketing segment reported net income of $4.7 for the six months ended March 31, 2022, versus $40.1 during the same period last year, principally reflecting strong second quarter operating results in the prior year due to Winter Storm Uri. Fiscal 2022 results also reflect less favorable market conditions and basis differentials despite price volatility, offset by favorable resolution of certain customer claims. Gas Marketing also experienced $7.2 in after-tax unfavorable year-over-year derivative fair value mark-to-market valuations. Net economic earnings for the current-year period were $14.9, a decrease of $28.2 from the same period last ~~year. Excluding~~year, as net income variance is reduced by adding back the ~~Year-To-Date Postretirement Nonservice Cost Transfer of $19.4, O&M~~unrealized derivative fair value impact.

For the six months ended March 31, 2022, net economic loss for Other was ~~$10.0 lower~~$7.7, versus $6.7 in the prior-year period. Included in those results were slightly higher corporate costs in the current year.

Reconciliations of the Company’s contribution margin to the most directly comparable GAAP measure are shown in the table below:

	Gas Utility			Gas Marketing			Other		Eliminations			Consolidated
Six Months Ended March 31, 2022
Operating Income [GAAP]	$	324.8		$	6.5		$	9.2	$	—		$	340.5
Operation and maintenance expenses		211.5			5.9			20.0		(7.8	)		229.6
Depreciation and amortization		111.1			0.7			4.0		—			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			34.7		(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		$	34.7	$	(26.6	)	$	1,436.3

Six Months Ended March 31, 2021
Operating Income [GAAP]	$	330.8		$	52.0		$	7.5	$	—		$	390.3
Operation and maintenance expenses		207.0			10.4			19.7		(6.5	)		230.6
Depreciation and amortization		98.1			0.6			3.6		—			102.3
Taxes, other than income taxes		91.9			0.7			1.4		—			94.0
Less: Gross receipts tax expense		(63.8	)		(0.1	)		—		—			(63.9	)
Contribution Margin [Non-GAAP]		664.0			63.6			32.2		(6.5	)		753.3
Natural gas costs		823.5			(5.5	)		0.1		(17.8	)		800.3
Gross receipts tax expense		63.8			0.1			—		—			63.9
Operating Revenues	$	1,551.3		$	58.2		$	32.3	$	(24.3	)	$	1,617.5

Spire’s operating revenues decreased by $230.4 at the Gas Utility segment, which more than offset the $49.1 increase in the Gas Marketing segment and the $2.4 increase in Other. The Gas Utility variance was largely due to the prior year ~~versus~~results including the ~~prior-year period. This~~benefits that resulted from Winter Storm Uri. The Gas Marketing increase was due to lower trading activity (trading activities are recorded as revenues net of costs) and higher volumes and pricing, while Other primarily reflects higher revenues at Spire Storage.

Spire’s contribution margin decreased $32.0 compared with the same six-month period last year, as the $17.1 increase in the Gas Utility segment was more than offset by the $50.3 reduction at Gas Marketing. The Gas Utility contribution margin increase was primarily driven by the $17.5 increase from Spire Missouri and the $1.9 increase at Spire Alabama, offset slightly by a decline at the utilities of Spire EnergySouth. The decrease isin Gas Marketing reflects very favorable market conditions in the prior year second quarter, combined with unfavorable fair value mark-to-market adjustments in the current year. Higher contribution margins in Other are primarily due to Spire Storage improvement resulting from higher utilization of its storage capacity.

Depreciation and amortization expenses were higher in the ~~result~~Gas Utility segment, due to higher capital investments in both Spire Missouri and Spire Alabama. Gas Utility O&M expenses were $4.5 higher in the current year. Removing the prior year impact of the Missouri Supreme Court ruling that partially reversed 2018 rate case pension cost disallowances totaling ~~$9.0.~~$9.0, and the year-to-date postretirement Nonservice Cost Transfer of $1.4, run-rate O&M expenses in the current year are lower by $3.1. These fluctuations are described in more detail below.

Operating Revenues – Gas Utility operating revenues for the six months ended March 31, 2022, were $1,320.9, or $230.4 lower than the same period last year. The decrease in Gas Utility operating revenues was attributable to the following factors:

The decrease in revenues was driven primarily by the prior year inclusion of $195.8 of cover charges and OFO penalties to certain wholesale customers at Spire Missouri, a $97.9 decrease in off-system sales, and weather/volumetric impacts of $22.7. These negative impacts more than offset the benefits of higher current year gas cost recoveries of $46.4, Spire Missouri’s new rates that resulted from the 2021 rate order, and Spire Alabama’s favorable RSE adjustments.

Contribution Margin – Gas Utility contribution margin was $681.1 for the six months ended March 31, 2022, a $17.1 increase over the same period last year. The increase was attributable to the following factors:

The contribution margin increase resulted primarily from the changes resulting from the 2021 rate order and Spire Alabama RSE adjustment impacts more than offsetting negative volumetric usage and lower off-system sales.

Operating Expenses – Gas Utility O&M expenses were $4.5 higher in the current year. Removing the Missouri Supreme Court ruling that partially reversed 2018 rate case pension cost disallowances totaling $9.0, and the year-to-date postretirement Nonservice Cost Transfer of $1.4, run-rate O&M expenses in the current year are lower by $3.1. This decrease is primarily due to lower operations and employee-related costs and lower bad debt expense. Depreciation and amortization expenses for the six months ended March 31, 2021, increased $13.0 from the same period last year, the result of continued levels of capital investment.

Operating Revenues – Gas Marketing operating revenues increased $49.1 from the same period last year, primarily due to trading activity making up a lower proportion of total sales (trading activities are recorded as revenues net of costs) and higher volumes and pricing.

Contribution Margin – Gas Marketing contribution margin during the six months ended March 31, 2022, decreased $50.3 from the same period last year, driven principally by ~~$3.1~~strong second quarter results in the prior year. During that quarter, particularly the month of February, very favorable weather patterns drove significantly higher regional basis differentials and volume. The current year reflects more normalized market conditions.

Consolidated interest charges during the six months ended March 31, 2022, were $4.6 higher than the same period last year. The increase was primarily driven by higher average short-term interest rates in the current year period, combined with the impact of net long-term debt issuances and higher levels of short-term borrowings. For the six months ended March 31, 2022 and 2021, average short-term borrowings were $799.1 and $681.4, respectively, and the average interest rates on these borrowings were 0.5% and 0.4%, respectively.

Consolidated income tax expense during the six months ended March 31, 2022 decreased $9.5 versus the prior year. The variance is the result of the lower pre-tax book income in the current year, offset by a $4.1 charge resulting from Tax Cuts and Jobs Act reconciliations from the recently completed Spire Missouri rate case.

Prior year operating revenues results included benefits derived from Winter Storm Uri. As a result, current year revenues were $227.3 below the prior-year quarter. Key drivers were a reduction in gas recovery costs totaling $154.5, primarily the result of $195.8 in cover charges and OFO penalties to certain wholesale customers in the prior year only being partly offset by higher commodity costs in the current year. Off-system sales and capacity release in the current-year quarter were $95.0 lower than the prior year, with the second quarter of 2021 benefiting from historically high off-system sales relating primarily to Winter Storm Uri. Revenues were also negatively impacted by a $9.1 reduction due to lower volume and usage. These negative impacts were only partly offset by the $24.8 increase resulting from the rate increases as a result of ~~continuing~~the 2021 rate order, and $10.1 of higher gross-receipt taxes.

Contribution margin for the three months ended March 31, 2022, increased $17.5 from the same period in the prior year, largely the result of the $24.8 increase attributable to the rate case changes outlined above more than offsetting a $2.9 decrease due volumetric impacts (including weather mitigation) and $2.6 lower off-system sales.

Reported O&M expenses increased $4.9 versus the prior year. After removing the $0.8 impact of the year-to-date Nonservice Cost Transfer and last year’s $9.0 rate case refund ruling by the Missouri Supreme Court, expenses decreased $3.3. The decrease was largely due to lower employee-related expenses and lower bad debt expenses. Depreciation and amortization increased $8.7 versus the prior-year quarter due to ongoing capital ~~investment.~~investments.

~~Spire Missouri’s other~~Interest expense for the six months ended March 31, 2022 increased $5.3 versus the same period in the prior year, the result of net long term debt issuances and significantly higher short-term interest rates.

Resulting net income ~~increased $23.4~~for the six months ended March 31, 2022, decreased $6.2 versus the comparable prior-year period. Removing the impact of the Year-To-Date Postretirement Nonservice Cost Transfer of $19.4, other income increased $4.0, primarily due to increases in the value of investments associated with non-qualified employee benefit plans reflecting market conditions.

Temperatures in Spire Missouri’s service areas during the six months ended March 31, 2021, were ~~0.4% colder~~6.7% warmer than the same period last year ~~but 4.7%~~and 10.3% warmer than normal. The Spire Missouri total system therms sold and transported were ~~1,295.7~~1,220.8 million for the six months ended March 31, ~~2021,~~2022, compared with ~~1,251.4~~1,295.7 million for the same period last year. Total off-system therms sold and transported were ~~21.3~~16.8 million for the six months ended March 31, ~~2021,~~2022, compared with ~~18.5~~21.3 million for the same period last year.

~~Resulting net income for the six months ended March 31, 2021, increased $27.2 versus the same period in the prior year.~~

	Six Months Ended March 31,						Six Months Ended March 31,
	2021			2020			2022			2021
Operating Income [GAAP]	$	111.7		$	102.1		$	109.0		$	111.7
Operation and maintenance expenses		66.5			72.3			67.4			66.5
Depreciation and amortization		30.2			28.9			33.2			30.2
Taxes, other than income taxes		22.9			22.0			23.5			22.9
Less: Gross receipts tax expense		(17.1	)		(16.1	)		(17.0	)		(17.1	)
Contribution Margin [Non-GAAP]		214.2			209.2			216.1			214.2
Natural gas costs		104.9			86.4			97.6			104.9
Gross receipts tax expense		17.1			16.1			17.0			17.1
Operating Revenues	$	336.2		$	311.7		$	330.7		$	336.2
Net Income	$	77.0		$	71.0		$	74.6		$	77.0

Operating revenues for the six months ended March 31, ~~2021, increased $24.5~~2022, decreased $5.5 from the same period last year. The change was principally driven by a ~~$20.0 increase~~$13.6 decrease in weather and usage impacts (net of weather mitigation) and ~~$2.5 net RSE adjustments (reset and giveback).~~lower Off-system sales of ~~$2.2~~$2.9. These negative impacts were only partly offset by ~~lower~~$6.0 net favorable RSE adjustments and by higher gas ~~costs~~cost recoveries of ~~$1.2.~~$5.1.

Contribution margin increased ~~$5.0,~~$1.9, principally as a result of the RSE adjustments of ~~$3.0~~$5.5 (mentioned above), ~~$1.3~~mostly offset by $3.4 lower volume usage impacts and $0.4 related to ~~higher~~lower off-system ~~sales, and $1.4 of weather and usage.~~sales. O&M expenses for the six months ended March 31, ~~2021, decreased $5.8~~2022, increased $0.9 from the same period last year. Excluding the impact of the ~~Year-To-Date Postretirement~~year-to-date postretirement Nonservice Cost Transfer of ~~$1.1,~~$0.4, the ~~decrease~~increase of ~~$4.7~~$1.3 was primarily driven by ~~lower~~slightly higher operations and employee-related costs.

Temperatures in Spire Alabama’s service area during the six months ended March 31, ~~2021,~~2022, were ~~11.5% colder~~10.8% warmer than the same period last year ~~but 5.9%~~and 14.9% warmer than normal. Spire Alabama’s total system therms sold and transported were ~~584.7~~583.9 million for the six months ended March 31, ~~2021,~~2022, compared with ~~603.7~~584.7 million for the same period last year. ~~The current year reflects off-system~~Off-system sales, and related therms sold totaled ~~27.1~~0.1 million, versus ~~no volume~~27.1 million in the prior year, which benefited from Winter Storm Uri.

For the six months ended March 31, 2022, net cash from operating activities decreased $4.1 from the corresponding period of fiscal 2021. Offsetting a decline in net income of $47.0 (discussed above) were changes due principally to high recovery of deferred gas costs this year and fluctuations in working capital items, as discussed below in the ~~program had not yet commenced.~~Future Cash Requirements section. Those typical variance drivers have been impacted by Spire Missouri’s Operational Flow Order and Filing Adjustment Factor put into place last year, as discussed in Note 4, Regulatory Matters, of the Notes to Financial Statements in Item 1.

For the six months ended March 31, 2022, net cash used in investing activities was $31.1 less than for the same period in the prior year, primarily driven by a $27.6 decrease in capital expenditures. The primary drivers of the lower capital expenditures were a $14.9 spending decline at Gas Utility, and a $11.8 decline related principally to Spire Storage, as well as a slight decline at Spire STL Pipeline.

Lastly, for the six months ended March 31, 2022, net cash provided by financing activities was down $123.0 versus net cash provided for the six months ended March 31, 2021. Current year long-term debt issuances were $300.0, or $25.0 lower than a year ago, net short-term debt repayments were higher by $70.4 in the current period, and repayments of long-term debt rose $50.4 over the prior year period. Partially offsetting these fluctuations was a $23.3 increase in issuances of common stock during the first six months of fiscal 2022 versus the same prior year period.

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, 2022, are related to capital expenditures, principal and interest payments on long-term debt, natural gas purchase obligations, and dividends. Except for Spire Missouri’s December 2021 issuance of $300.0 of floating rate bonds due in December 2024, 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, 2021. Total Company capital expenditures are planned to be $540 for fiscal 2022.

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, 2022, 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).

Bank deposits were used to support working capital needs of the business. Spire had no temporary cash investments as of March 31, 2022.

The Company’s short-term cash requirements can be met through the sale of up to $975.0 of commercial paper or through the use of Spire’s $975.0 revolving credit facility. For information about short-term borrowings, see Note 5 of the Notes to Financial Statements in Item 1.

At March 31, 2022, including the current portion but excluding unamortized discounts and debt issuance costs, Spire had long-term debt totaling $3,258.9, of which $1,648.0 was issued by Spire Missouri, $575.0 was issued by Spire Alabama, and $205.9 was issued by other subsidiaries. For information about long-term debt issued this fiscal year, see Note 5 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. As of March 31, 2022, the entire amount remained available under this authorization. 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 169,420 and 164,624 shares at March 31, 2022 and May 1, 2022, 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 14, 2022. A new universal shelf registration statement on Form S-3 will be filed before the expiration of the current one.

On February 6, 2019, Spire entered into an “at-the-market” (ATM) equity distribution agreement, supplemented as of May 14, 2019, pursuant to which the Company may offer and sell, from time to time, shares of its common stock pursuant to Spire’s universal shelf registration statement referenced above and a prospectus supplement dated May 14, 2019. Under this program, a total of 626,249 shares with an aggregate offering price of $47.8 were issued in fiscal 2019 and 2020, and 354,000 shares with an aggregate offering price of $23.5 have been issued to date in fiscal 2022. On April 28, 2022, Spire’s board approved a new authorization for the sale of additional shares with an aggregate offering price of up to $200.0 before the May 2025 expiration of the new universal shelf registration statement on Form S-3 to be filed in May 2022.

Including the current portion of long-term debt, the Company’s long-term consolidated capitalization consisted of 47% equity at both March 31, 2022 and September 30, 2021.

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 10 of the Notes to Financial Statements in Item 1.

For discussions of regulatory matters for Spire, Spire Missouri, and Spire Alabama, see Note 4, Regulatory Matters, of the Notes to Financial Statements in Item 1.

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.

~~Our discussion~~At March 31, 2022, including the current portion but excluding unamortized discounts 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. GAAP 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 resultsdebt issuance costs, Spire had long-term debt totaling $3,258.9, of which ~~form the basis for making judgments~~$1,648.0 was issued by Spire Missouri, $575.0 was issued by Spire Alabama, and $205.9 was issued by other subsidiaries. For information 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 the Company’s, Spire Missouri’s, and Spire Alabama’s combined Annual Report on Form 10-K for thelong-term debt issued this fiscal year, ended September 30, 2020, and include regulatory accounting, employee benefits and postretirement obligations, impairment of long-lived assets, and income taxes. While accounting estimates related to these and other items such as goodwill and allowance for credit losses were considered in light of the COVID-19 health crisis and the February 2021 cold weather event, there were no significant changes to critical accounting estimates during the six months ended March 31, 2021.

~~For discussion of other significant accounting policies,~~ see Note 15 of the Notes to Financial Statements ~~included~~ in Item 1.

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 169,420 and 164,624 shares at March 31, 2022 and May 1, 2022, respectively, remaining available for issuance under this Form ~~10-Q~~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 14, 2022. A new universal shelf registration statement on Form S-3 will be filed before the expiration of the current one.

On February 6, 2019, Spire entered into an “at-the-market” (ATM) equity distribution agreement, supplemented as ~~well as~~ of May 14, 2019, pursuant to which the Company may offer and sell, from time to time, shares of its common stock pursuant to Spire’s universal shelf registration statement referenced above and a prospectus supplement dated May 14, 2019. Under this program, a total of 626,249 shares with an aggregate offering price of $47.8 were issued in fiscal 2019 and 2020, and 354,000 shares with an aggregate offering price of $23.5 have been issued to date in fiscal 2022. On April 28, 2022, Spire’s board approved a new authorization for the sale of additional shares with an aggregate offering price of up to $200.0 before the May 2025 expiration of the new universal shelf registration statement on Form S-3 to be filed in May 2022.

Including the current portion of long-term debt, the Company’s long-term consolidated capitalization consisted of 47% equity at both March 31, 2022 and September 30, 2021.

For discussions of regulatory matters for Spire, ~~Missouri’s,~~Spire Missouri, and Spire ~~Alabama’s combined Annual Report on Form 10-K for~~Alabama, see Note 4, Regulatory Matters, of the ~~fiscal year ended September 30, 2020.~~Notes to Financial Statements in Item 1.

The Company, Spire Missouri and Spire Alabama have evaluated or are in the process of evaluating the ~~impact~~effects that recently issued accounting standards will have on the companies’ financial position or results of operations upon ~~adoption. For disclosures related to the~~ adoption, ~~of new accounting standards, see the New Accounting Pronouncements section in~~ ~~Note 1~~ ~~of the Notes to Financial Statements in Item 1.~~

For the six months ended March 31, 2021, net cash provided by operating activities decreased $162.5 from the corresponding period of fiscal 2020. The change was due principally to regulatory timing and fluctuations in working capital items, as discussed above.

For the six months ended March 31, 2021, net cash used in investing activities was $40.3 less than for the same period in the prior year, primarily driven by a $42.6 decrease in capital expenditures. The primary driver of the lower capital expenditures was a $42.9 decline related to Spire Storage and Spire STL Pipeline, while Gas Utility expenditures increased slightly. Total capital expenditures for the full fiscal year 2021but none are currently expected to ~~be approximately $590.~~

Lastly, for the six months ended March 31, 2021, net cash provided by financing activities was $245.0, up $119.5 versus net cash provided of $125.5 for the six months ended March 31, 2020. Current year long-term debt issuances were $325.0, $185.0 less thanhave a year ago, and the issuances of common stock during the first six months of fiscal 2021 were $14.5 less than last year. This was offset by $134.6 less repayments of long-term debt in the current year, as well as $5.5 net short-term debt issued in the current year versus $182.6 net repayments in the prior year.significant impact.

The Company’s, Spire Missouri’s and Spire Alabama’s access to capital markets, including the commercial paper market, and their respective financing costs, may depend on the credit rating of the entity that is accessing the capital markets. Our debt is rated by two rating agencies: Standard & Poor’s Corporation (“S&P”) and Moody’s Investors Service (“Moody’s”). As of March 31, 2021, the debt ratings of the Company, Spire Missouri and Spire Alabama, shown in the following table, remain at investment grade with a stable outlook.

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 capital requirements, which primarily include capital expenditures, interest payments on long-term debt, scheduled maturities of long-term debt, short-term seasonal needs and dividends.

The effects of COVID-19 on the U.S. capital markets may significantly impact Spire. We rely on access to the capital markets to fund our capital requirements. These uncertain economic conditions may also result in the inability of our customers to pay for services and could have an impact on our liquidity. Still, considering our financing as described in ~~Note 5, Financing, of the Notes to Financial Statements in Item 1, we believe we have sufficient access to cash to meet our needs.~~

~~Bank deposits were used to support working capital needs of the business~~. ~~Spire had $100.2 of temporary cash investments as of March 31, 2021.~~

The Utilities’ short-term borrowing requirements typically peak during the colder months, while most of the Company’s other needs are less seasonal. These short-term cash requirements can be met through the sale of commercial paper or through the use of a revolving credit facility. For information about these resources, see ~~Note 5, Financing, of the Notes to Financial Statements in Item 1.~~

At March 31, ~~2021,~~2022, including the current portion but excluding unamortized discounts and debt issuance costs, Spire had long-term debt totaling ~~$2,819.6,~~$3,258.9, of which ~~$1,098.0~~$1,648.0 was issued by Spire Missouri, ~~$625.0~~$575.0 was issued by Spire Alabama, and ~~$231.6~~$205.9 was issued by other subsidiaries. For ~~more~~ information about long-term debt issued this fiscal year, see Note 5 of the Notes to Financial Statements in Item 1.

~~In February 2021, Spire issued 3.5 million equity units for an aggregate stated amount of $175.0, resulting in net proceeds of $169.3 after underwriting fees and other issuance costs. See~~ ~~Note~~Effective March 5, ~~of the Notes to Financial Statements in Item 1 for additional discussion of these equity units.~~

2022, Spire Missouri was authorized by the MoPSC to issue ~~registered securities (first~~conventional term loans, first mortgage bonds, unsecured debt, ~~and~~ preferred ~~stock),~~stock and common stock ~~and private placement debt~~ in an aggregate amount of up to ~~$660.0~~$800.0 for financings placed any time before ~~September 30, 2023.~~December 31, 2024. As of March 31, ~~2021,~~2022, the entire ~~$660.0~~amount remained available under this authorization. Spire Alabama has no standing authority to issue long-term debt and must petition the APSC for each planned issuance. ~~On March 24, 2020, the APSC approved an application for up to $150.0 of additional long-term debt financing for Spire Alabama, which was ultimately issued on December 15, 2020.~~

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 ~~194,709~~169,420 and ~~189,751~~164,624 shares at March 31, ~~2021~~2022 and ~~April 30, 2021,~~May 1, 2022, 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 14, 2022. A new universal shelf registration statement on Form S-3 will be filed before the expiration of the current one.

On February 6, 2019, Spire entered into an “at-the-market” (ATM) equity distribution agreement, supplemented as of May 14, 2019, pursuant to which the Company may offer and sell, from time to time, shares of its common stock ~~having an aggregate offering price of up to $150.0. Those shares are issued~~ pursuant to Spire’s universal shelf registration statement referenced above and a prospectus supplement dated May 14, 2019. Under this program, a total of 626,249 shares with an aggregate offering price of $47.8 were issued in fiscal 2019 and 2020, and as354,000 shares with an aggregate offering price of ~~March 31, 2021, Spire can still issue~~$23.5 have been issued to date in fiscal 2022. On April 28, 2022, Spire’s board approved a new authorization for the sale of additional shares ~~having~~with an aggregate offering price of up to ~~$102.2.~~$200.0 before the May 2025 expiration of the new universal shelf registration statement on Form S-3 to be filed in May 2022.

Including the current portion of long-term debt, the Company’s long-term consolidated capitalization consisted of 47% equity at both March 31, ~~2021, consisted of 49% equity~~2022 and at September 30, ~~2020, consisted of 50% equity.~~

~~During the six months ended March 31, 2021, except for the issuance of $150.0 of ten-year notes by Spire Alabama and the $175.0 of notes issued by Spire as part of the equity units described in~~ ~~Note 5~~, Financing, of the Notes to Financial Statements in Item 1, there were no material changes outside the ordinary course of business to the estimated contractual obligations from the disclosure provided in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

There were no material changes in the Company’s commodity price risk or counterparty credit risk as of March 31, 2021, relative to the corresponding information provided in the Company’s Annual Report on Form 10-K as of September 30, 2020. During the first quarter of fiscal 2019, the Company entered into a three-year interest rate swap with a fixed interest rate of 3.250% and a notional amount of $100.0 to protect itself against adverse movements in interest rates on future interest rate payments. The Company recorded a $32.2 mark-to-market gain on this swap for the six months ended March 31, 2021. In the second quarter of 2020, the Company entered into multiple three-year interest rate swaps with fixed interest rates ranging from 0.921% to 1.3105% for a total notional amount of $150.0 to protect itself against adverse movements in interest rates on future interest rate payments. The Company recorded a $27.9 mark-to-market gain on these swaps for the six months ended March 31, 2021. In the second quarter of 2021, the Company entered into a three-year interest rate swap with a fixed interest rate of 2.12% for a total notional amount of $25.0 to protect itself against adverse movements in interest rates on future interest rate payments. The Company recorded a $0.5 mark-to-market gain on these swaps for the six months ended March 31, 2021. As of March 31, 2021, the Company has recorded through other comprehensive income a cumulative mark-to-market net asset of $6.5 on open swaps.

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, ~~and~~ regulations, ~~along with their~~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 10 of the Notes to Financial Statements in Item 1.

AtFor discussions of regulatory matters for Spire, Spire Missouri, and Spire Alabama, see Note 4, Regulatory Matters, of the Notes to Financial Statements in Item 1.

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, 2021, 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, 2022.

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, 2021.

There were no material changes in the Company’s commodity price risk or counterparty credit risk as of March 31, 2022, relative to the corresponding information provided in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021. In the second fiscal quarter of 2020, the Company entered into multiple ten-year interest rate swaps with fixed interest rates ranging from 0.934% to 1.2975% for a total notional amount of $75.0 to protect itself against adverse movements in interest rates on future interest rate payments. The Company recorded a $2.4 mark-to-market gain in accumulated other comprehensive income on these swaps for six months ended March 31, 2022. In the third quarter of 2021 the Company ~~had no off-balance-sheet financing arrangements other than surety bonds and letters of credit~~ entered into multiple ten-year interest rate swaps with fixed interest rates ranging from 2.008% to 2.1075% for a total notional amount of $150.0 to protect itself against adverse movements in ~~the ordinary course of business.~~interest rates on future interest rate payments. The Company ~~does not expect~~recorded a $4.6 mark-to-market gain in accumulated other comprehensive income on these swaps for the six months ended March 31, 2022.

In the fourth quarter of 2021, the Company entered into two swap contracts. Both contracts are ten-year interest rate swaps; the first swap has a notional amount of $50.0 with a fixed interest rate of 1.597%, while the second swap has a notional amount of $50.0 with a fixed interest rate of 1.821%. The Company recorded a $0.6 mark-to-market gain to ~~engage in any significant off-balance-sheet financing arrangements in~~accumulated other comprehensive income on these swaps for the ~~near future.~~six months ended March 31, 2022.

In the first quarter of fiscal 2022, the Company entered into a ten-year interest rate swap contract with a notional amount of $50.0 with a fixed interest rate of 1.4918%. The Company recorded a $2.3 mark-to-market gain to accumulated other comprehensive income on this swap for the six months ended March 31, 2022.

In the second quarter of fiscal 2022, the Company entered into multiple ten-year interest rate swap contracts with a cumulative total notional amount of $150.0 with fixed interest rates ranging from 1.64750% to 1.7460%. The Company recorded a $3.9 mark-to-market gain to accumulated other comprehensive income on these swaps for the six months ended March 31, 2022.

As of March 31, 2022, the Company has recorded through accumulated other comprehensive income a cumulative mark-to-market net asset of $20.8 on open swaps for the current fiscal year.

For this discussion, see Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations – Market Risk.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended. Based upon such evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective.

There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, ~~2021,~~2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the disclosure controls and procedures pursuant to Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective.

For a description of legal proceedings, environmental matters and regulatory matters, see Note 10, Commitments and Contingencies, and Note 4, Regulatory Matters, of the Notes to Financial Statements in Item 1 of Part I.

There ~~have been~~were no material changes ~~from~~in the Company’s risk factors ~~as previously~~from those disclosed in Part I, Item 1A ~~to Part I~~ of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, ~~2020.~~2021.

The only repurchases of Spire’s common stock in the quarter were pursuant to elections by employees to have shares of stock withheld to cover employee tax withholding obligations upon the vesting of performance-based and time-vested restricted stock and stock units. The following table provides information on those repurchases.

Spire Missouri’s outstanding first mortgage bonds contain restrictions on its ability to pay cash dividends on its common stock. As of March 31, ~~2021,~~2022, all of Spire Missouri’s retained earnings were free from such restrictions.

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Commission File Number	Name of Registrant, Address of Principal Executive Offices and Telephone Number	State of Incorporation	I.R.S. Employer Identification Number

1-16681	Spire Inc. 700 Market Street St. Louis, MO 63101 314-342-0500	Missouri	74-2976504

1-1822	Spire Missouri Inc. 700 Market Street St. Louis, MO 63101 314-342-0500	Missouri	43-0368139

2-38960	Spire Alabama Inc. 605 Richard Arrington Blvd N Birmingham, AL 35203 205-326-8100	Alabama	63-0022000

Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Common Stock $1.00 par value	SR	New York Stock Exchange LLC

Depositary Shares, each representing a 1/1,000^th interest in a share of 5.90% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $25.00 per share	SR.PRA	New York Stock Exchange LLC

Spire Inc.	Yes ☒	No ☐
Spire Missouri Inc.	Yes ☒	No ☐
Spire Alabama Inc.	Yes ☒	No ☐

Spire Inc.	Yes ☒	No ☐
Spire Missouri Inc.	Yes ☒	No ☐
Spire Alabama Inc.	Yes ☒	No ☐

	Large accelerated filer	Accelerated filer	Non- accelerated filer	Smaller reporting company	Emerging growth company
Spire Inc.	X
Spire Missouri Inc.			X
Spire Alabama Inc.			X

Spire Inc.	Yes ☐	No ☒
Spire Missouri Inc.	Yes ☐	No ☒
Spire Alabama Inc.	Yes ☐	No ☒

Spire Inc.	Common Stock, par value $1.00 per share	~~51,679,561~~52,121,977
Spire Missouri Inc.	Common Stock, par value $1.00 per share (all owned by Spire Inc.)	~~24,577~~24,929
Spire Alabama Inc.	Common Stock, par value $0.01 per share (all owned by Spire Inc.)	1,972,052

TABLE OF CONTENTS

			Page No.

GLOSSARY			2

PART I. FINANCIAL INFORMATION
Item 1	Financial Statements (Unaudited)
	Spire Inc.
		Condensed Consolidated Statements of Income	4
		Condensed Consolidated Statements of Comprehensive Income	5
		Condensed Consolidated Balance Sheets	6
		Condensed Consolidated Statements of Shareholders’ Equity	8
		Condensed Consolidated Statements of Cash Flows	10
	Spire Missouri Inc.
		Condensed Statements of Comprehensive Income	11
		Condensed Balance Sheets	12
		Condensed Statements of Shareholder’s Equity	14
		Condensed Statements of Cash Flows	15
	Spire Alabama Inc.
		Condensed Statements of Income	16
		Condensed Balance Sheets	17
		Condensed Statements of Shareholder’s Equity	19
		Condensed Statements of Cash Flows	20
	Notes to Financial Statements
		Note 1. Summary of Significant Accounting Policies	21
		Note 2. Revenue	24
		Note 3. Earnings Per Common Share	25
		Note 4. Regulatory Matters	26
		Note 5. Financing	31
		Note 6. Fair Value of Financial Instruments	33
		Note 7. Fair Value Measurements	34
		Note 8. Pension Plans and Other Postretirement Benefits	3637
		Note 9. Information by Operating Segment	40
		Note 10. Commitments and Contingencies	42
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations		45
Item 3	Quantitative and Qualitative Disclosures About Market Risk		6563
Item 4	Controls and Procedures		6563

PART II. OTHER INFORMATION
Item 1	Legal Proceedings		6664
Item 11AA	Risk Factors		6664
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds		6664
Item 3	Defaults upon Senior Securities		6664
Item 4	Mine Safety Disclosures		6664
Item 5	Other Information		6664
Item 6	Exhibits		6765

SIGNATURES			6866

APSC	Alabama Public Service Commission	PGA	Purchased Gas Adjustment
ASC	Accounting Standards Codification	RSE	Rate Stabilization and Equalization
Company	Spire ~~Inc.~~and its subsidiaries unless the context suggests otherwise	SEC	U.S. Securities and Exchange Commission
Degree days	The average of a day’s high and low temperature below 65, subtracted from 65, multiplied by the number of days impacted	Spire	Spire Inc.
FASB	Financial Accounting Standards Board	Spire Alabama	Spire Alabama Inc.
FERC	Federal Energy Regulatory Commission	Spire EnergySouth	Spire EnergySouth Inc., the parent of Spire Gulf and Spire Mississippi
GAAP	Accounting principles generally accepted in the United States of America	Spire Gulf	Spire Gulf Inc.
Gas Marketing	Segment including Spire Marketing, which ~~is engaged in the non-regulated marketing of~~provides natural gas ~~and related activities~~marketing services	Spire Marketing	Spire Marketing Inc.
Gas Utility	Segment including the ~~regulated~~ operations of the Utilities	Spire Mississippi	Spire Mississippi Inc.
GSA	Gas Supply Adjustment	Spire Missouri	Spire Missouri Inc.
ISRS	Infrastructure System Replacement Surcharge	Spire STL Pipeline	Spire STL Pipeline LLC, or the 65-mile FERC-regulated pipeline it constructed and operates to deliver natural gas into eastern Missouri
MoPSC	Missouri Public Service Commission	Spire Storage	~~Spire’s~~The physical natural gas storage operations ~~at two facilities in Wyoming~~of Spire Storage West LLC
MSPSC	Mississippi Public Service Commission	U.S.	United States
O&M	Operation and maintenance expense	Utilities	Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth


~~If the applicable market value~~* ~~per share~~ ~~of Spire common stock is:~~		~~Number of shares to be purchased per stock purchase contract is:~~
~~Equal to or greater than $78.6906 (“threshold appreciation price”)~~		~~0.6354 (“minimum settlement rate”)~~
~~Less than $78.6906, but greater than $64.24~~		$50.00 ÷ applicable market value*
~~Less than or equal to $64.24 (“reference price”)~~		~~0.7783 (“~~maximum ~~settlement rate”)~~

	Six Months Ended March 31,
Cash Flow Summary	2022			2021
Net cash provided by operating activities	$	155.1		$	159.2
Net cash used in investing activities		(273.2	)		(304.3	)
Net cash provided by financing activities		122.0			245.0

	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

	~~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

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid Per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs
January 1, 2021 – January 31, 2021		—	$	—		—		—
February 1, 2021 – February 28, 2021		209		62.35		—		—
March 1, 2021 – March 31, 2021		104		66.97		—		—
Total		313		63.89		—		—

Exhibit No.		Description
4.1*		Twenty-Fourth Supplemental Indenture, ~~(For Unsecured Debt Securities),~~ dated as of ~~February 16, 2021,~~June 1, 1999, between ~~the~~Laclede Gas and State Street Bank and Trust Company ~~and U.S. Bank National Association,~~of Missouri, N.A., as trustee; filed as Exhibit ~~4.1~~4.01 to ~~the Company’s~~Laclede Gas’ Current Report on Form 8-K ~~on February 16, 2021.~~filed June 4, 1999.
4.2*4.2		~~First~~Thirty-Seventh Supplemental Indenture, dated as of ~~February 16, 2021,~~May 2, 2022, between ~~the Company and U.S. Bank National Association, as trustee; filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K on February 16, 2021.~~
4.3*		~~Form of Series A 0.75% Remarketable Senior Note due 2026; included in Exhibit 4.2 to the Company’s Current Report on Form 8-K on February 16, 2021.~~
4.4*		Purchase Contract and Pledge Agreement, dated as of February 16, 2021, between the Company and U.S. Bank National Association, as purchase contract agent, collateral agent, custodial agent and securities intermediary; filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K on February 16, 2021.
4.5*		~~Form of Remarketing Agreement; included in Exhibit 4.4 to the Company’s Current Report on Form 8-K on February 16, 2021.~~
4.6*		~~Form of Corporate Unit; included in Exhibit 4.4 to the Company’s Current Report on Form 8-K on February 16, 2021.~~
4.7*		~~Form of Treasury Unit; included in Exhibit 4.4 to the Company’s Current Report on Form 8-K on February 16, 2021.~~
10.1*		~~Loan Agreement, dated March 23, 2021, by and among~~ Spire Missouri ~~Inc.~~and UMB Bank & Trust, N.A., as the Borrower, and five banks including U.S. Bank National Association, as the Administrative Agent; filed as Exhibit 10.1 to the Company and Spire Missouri’s Current Report on Form 8-K on March 23, 2021.trustee.
31.1		CEO and CFO Certifications under Exchange Act Rule 13a-14(a) of Spire Inc.
31.2		CEO and CFO Certifications under Exchange Act Rule 13a-14(a) of Spire Missouri Inc.
31.3		CEO and CFO Certifications under Exchange Act Rule 13a-14(a) of Spire Alabama Inc.
32.1		CEO and CFO Section 1350 Certifications of Spire Inc.
32.2		CEO and CFO Section 1350 Certifications of Spire Missouri Inc.
32.3		CEO and CFO Section 1350 Certifications of Spire Alabama Inc.
101		Interactive Data Files including the following information from the Quarterly Report on Form 10-Q for the period ended March 31, ~~2021~~2022, formatted in inline extensible business reporting language (“Inline XBRL”): (i) Cover Page Interactive Data and (ii) the Financial Statements included in Item 1.
104		Cover Page Interactive Data File (formatted in Inline XBRL and included in the Interactive Data Files submitted under Exhibit 101).

		Spire Inc.

Date:	May ~~7, 2021~~6, 2022	By:	/s/ Steven P. Rasche
			Steven P. Rasche
			Executive Vice President and Chief Financial Officer
			(Authorized Signatory and Principal Financial Officer)