Energy in motion. Investor presentation January 2019

Transcription

1 Energy in motion Investor presentation January 2019

2 2 S p i r e I n v e s t o r Pp r e s e n t a t i o n JD ae nc ue am rby e2r

3 Forward-looking statements and use of non-gaap measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Our forwardlooking statements in this presentation speak only as of today, and we assume no duty to update them. Forward-looking statements are typically identified by words such as, but not limited to: estimates, expects, anticipates, intends, and similar expressions. Although our forward-looking statements are based on reasonable assumptions, various uncertainties and risk factors may cause future performance or results to be different than those anticipated. For a more complete description of these uncertainties and risk factors, see our Form 10-K for the fiscal year ended September 30, 2018 filed with the Securities and Exchange Commission (SEC). This presentation also includes net economic earnings, net economic earnings per share, contribution margin, adjusted EBITDA, and adjusted long-term capitalization, non-gaap measures used internally by management when evaluating the Company s performance and results of operations. Net economic earnings exclude from 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 other non-recurring or unusual items such as certain regulatory, legislative, or GAAP standard-setting actions. In fiscal 2018, these items included the revaluation of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act and the write-off of certain long-standing assets related to pension costs and property sold as a result of disallowances in our Missouri rate proceedings. The fair value and timing adjustments, which primarily impact the Gas Marketing segment, include net unrealized gains and losses on energy-related derivatives resulting from the current changes in fair value of financial and physical transactions prior to their completion and settlement, lower of cost or market inventory adjustments, and realized gains and losses on economic hedges prior to the sale of the physical commodity. Management believes that excluding these items provides a useful representation of the economic impact of actual settled transactions and overall results of ongoing operations by facilitating comparisons of year-over-year results. Contribution margin is defined as operating revenues less natural and propane gas costs and gross receipts tax expense, which are directly passed on to customers and collected through revenues. These internal non-gaap operating metrics should not be considered as an alternative to, or more meaningful than, GAAP measures such as operating income or net income. Adjusted EBITDA is earnings before interest, income taxes, depreciation and amortization, plus largely non-cash write-offs related to Missouri rate cases. Reconciliations of net income to net economic earnings and of contribution margin to operating income are contained in our SEC filings and in the Appendix to this presentation. Reconciliations of adjusted EBITDA to net income and of capitalization per balance sheet to adjusted long-term capitalization are also contained in the Appendix. Note: Years shown in this presentation are fiscal years ended September 30, unless otherwise indicated. Investor Relations contact Scott W. Dudley Jr. Managing Director, Investor Relations Scott.Dudley@SpireEnergy.com 3

4 Putting our energy in motion Our mission Answer every challenge, advance every community and enrich every life through the strength of our energy. Transforming our company 1. Growing organically 2. Investing in infrastructure 3. Acquiring and integrating 4. Innovation and technology 4

5 We re expanding to serve more customers and markets We ve transformed our company by increasing our geographic footprint Our gas companies now serve 1.7 million homes and businesses across Alabama, Mississippi and Missouri We are advancing our gas-related businesses Spire Marketing Spire Storage Spire STL Pipeline 5

6 Moving forward confidently Gaining regulatory certainty through recent resets in Missouri and Alabama Executing on our organic growth and capital investment plans Advancing our gas-related businesses Strengthening our financial position Delivering solid FY18 net economic earnings per share (NEEPS) of $3.72 Setting growth expectations for FY19 and beyond FY19 NEEPS guidance of $3.70-$3.80 Long-term annual NEEPS growth target of 4%-7% based on FY18 run-rate earnings 6

7 Gaining regulatory certainty Missouri rate cases completed in March 2018 Increased return (ROE) and higher equity capitalization Secured weather normalization that mitigates margin exposure Received approval for $8 million ISRS increase in Missouri Alabama rate-setting parameters (RSE) updated ROEs and CCM reset Capital structures harmonized Gained infrastructure upgrade incentive for Spire Alabama Spire Alabama Spire Gulf Current Prior Current Prior Return on Equity (ROE) Range 10.15% % 10.50% % 10.45% % 10.45% % Adjusting point 10.40% 10.80% 10.70% 10.80% Equity capitalization 55.50% 56.50% 55.50% 56.00% Infrastructure incentive AIM: +/-10 bps ROE CIMFR: 75% eq ratio > baseline thru 2019 Cost Control Measurement (CCM) Metric O&M / customer Total O&M O&M / customer Total O&M Base year /- band 1.50% 1.75% 1.50% 1.75% 7

8 Growing organically Targeting programs to increase utility customers and margins Increased homes and businesses we served in FY18 New business capex to $85M (+44%) Installed record 11,000+ new meters Contracted 4,600 multi-family units Achieved higher Gas Utility margin Focused on managing costs across our utilities, post the regulatory resets Contribution margin Gas Utility (Millions) 1, $939 $948 $ O&M expenses per customer 1 $270 $260 $250 $240 $270 $255 $252 $244 $241 $250 $ Operation and maintenance (O&M) expenses and customers for Spire Missouri, Spire Alabama and Spire Gulf for all years (in orange) excludes pension and other amortization ($8M) associated with rate proceedings in MO and AL.

9 Investing for long-term growth 5-year capital investment forecast increased to $2.6B Driven by higher utility spend Supported by infrastructure upgrade programs with lives up to 20 years More than 85% of utility spend recovered with minimal regulatory lag or reflected in earnings Also reflects development of Spire STL Pipeline and Spire Storage Capital expenditures forecast (Millions) $650 $ $485 $495 $ Utility, with minimal lag and new business Rate base 1 growth 5-year forecast: $2.6B Other utility Pipelines and storage Balanced 5-year spending 9 Missouri East Missouri West Alabama/Mississippi Pipelines and storage 33% 10% 30% 27% $2.6 $ Rate base for Missouri utilities per order authorized 2/21/18 for cases C-GR and C-GR , plus retained shareholders equity for Spire Alabama and Spire Gulf per RSE filings on 10/26/18, and Spire Mississippi rate base per stipulation 4/10/18, all with estimated growth subject to prudence review.

10 Building Spire STL Pipeline Planned 65-mile pipeline to bring new gas supply to St. Louis region All approvals and permits have been received Land access secured and construction contractor mobilized Targeting in-service date in second half of calendar 2019 Total project investment estimated at $210 - $225 million 10

11 Growing Spire Marketing Solid business model supported by strong risk management protocols Provides gas marketing and related services to diverse customer base Physically delivers gas on 20+ pipelines Optimizes portfolio of commodity, transportation and storage contracts Strong FY18 results driven by Improved market conditions Wider regional basis differentials Greater storage and transport optimization Positioning Spire Marketing for continued growth and success Industry veterans leading the business and growing the team Expanding geographically with Houston business center Spire Marketing s operational reach 11

12 Investing in storage Building Spire Storage Integrating two adjacent natural gas storage facilities we acquired Upgrading operational capabilities and expanding service offerings Marketing to a broad range of customers: Utilities Power generators Pipelines Producers Marketers $56M total investment through FY18 Expect small earnings contribution in FY19 12

13 Strengthening our financial position FY18 adjusted EBITDA 1 of $493M Stronger long-term capitalization Equity improved 350bp from last year Near-term equity needs covered by May 2018 offering Ample liquidity from $975M facility Extended through 2023 Helps meet seasonal liquidity needs Capacity will increase with planned utility debt issuances Spire Missouri received $500M in new financing authority through 2021 FY18 adjusted EBITDA 1 (Millions) $500 $400 $482 FY17 Long-term capitalization 2 (at September 30, 2018) Equity Debt $493 FY % 47.8% 1 Adjusted EBITDA is Earnings before interest, income taxes, depreciation and amortization, plus largely non-cash write-offs related to Missouri rate cases. 2 See Adjusted long-term capitalization reconciliation in Appendix. 13

14 Driving long-term earnings growth Long-term NEEPS growth target of 4% - 7% Reflects ~6% annual utility rate base growth and regulatory certainty Growing contribution from all businesses Base is run-rate FY18 NEEPS, which removes 17 of Spire Marketing earnings driven by market conditions that are not expected to recur Earnings mix will remain predominately regulated Net economic earnings per share (NEEPS) 14

15 2019 NEEPS guidance Initiating 2019 NEEPS guidance of $ $3.80 Gas Utility growth driven by organic initiatives and infrastructure upgrades more than offsetting full-year impact of rate resets in Missouri (~3 ) and Alabama (~11 ) Increasing contributions from gas-related businesses as we develop Spire STL Pipeline and grow Spire Marketing and Spire Storage Other cost reductions (interest and other corporate costs) largely offset full-year impact of May 2018 equity offering 15

16 Dividends per share Dividend payout ratio Raising our dividend by 5.3% Annualized dividends per share $2.50 Dividend Yield 3.1% 2 $ % $2.30 $ % $2.10 $2.10 $ % $1.90 $1.84 $1.70 $1.66 $1.70 $ % $ % Annualized dividend increased to $2.37 per share 5.3% increase supported by our Long-term earnings growth targets Conservative payout ratio and target range of 55% - 65% 16 consecutive years of increases; 74 years of continuous payment 1 Quarterly dividend of $ per share effective January 3, 2019, annualized. 2 Based on $2.37 per share dividend and SR average closing stock price of $75.60 for calendar 4 th quarter

17 At Spire, we re always in motion, using our energy to get the job done today while exploring new and innovative ideas for tomorrow. 17

18 Appendix 18

19 Spire leadership team A. Suzanne Sitherwood President and Chief Executive Officer B. Steven P. Rasche Executive Vice President, Chief Financial Officer A B C. Steven L. Lindsey Executive Vice President, Chief Operating Officer of Distribution Operations D. Mark C. Darrell Senior Vice President, General Counsel and Chief Compliance Officer C D E. Michael C. Geiselhart Senior Vice President, Strategic Planning and Corporate Development F. Scott B. Carter Senior Vice President, Commercial Operations 19 E F

20 Our Spire utility portfolio Alabama Gulf Mississippi MO East MO West Founded Primary office Birmingham Mobile Hattiesburg St. Louis Kansas City Employees , Customers 420,600 83,900 18, , ,300 Pipeline miles ~23,000 ~4,300 ~1,200 ~16,000 ~14,000 Rate base (In Millions) $509 2 $92 2 $23 3 $2,200 4 ROE 10.40% % 9.34% 9.80% % 4 Equity capitalization 55.5% % 50.0% 54.2% 54.2% 1 Employees for Gulf and Mississippi utilities combined. 2 The Rate Stabilization and Equalization (RSE) mechanism uses avg common equity for year ended 9/30/18 for Alabama and Gulf utilities, rather than rate base, for ratemaking purposes. 3 Mississippi net assets less def. taxes for Rate Stabilization Adjustment (RSA) purposes as of 6/30/17. 4 Estimated FY18 year-end rate base at Spire Missouri reflecting growth since amended MoPSC order dated March 7, 2018, establishing rate base in MO East of $1,221M and MO West of $807M. Growth in rate base subject to prudence review. 5 Terms of renewed Rate Stabilization and Equalization (RSE), effective 10/1/18 through 9/30/22. 20

21 Pipeline replacement program Robust infrastructure replacement programs with lives up to ~20 years Estimated replacement miles As of 12/31/17 Steel 1 Cast iron Vintage plastic Total Est. years to completion Missouri 1, , Alabama , Total 2,300 1, ,000 % of total 58% 36% 6% 100% 1 Includes hard copper services inside bare steel, and threaded and coupled steel in Missouri. 21

22 Missouri regulatory summary Average-rated regulatory jurisdiction by RRA 1 Traditional approach: general rate case typically filed every three years Cost-of-service, rate base and capital structure determined using historical test year Both utilities have weather mitigated rate designs and mechanisms to address purchased gas costs, pensions and energy efficiency investments Infrastructure System Replacement Surcharge (ISRS) Enables recovery of (and on) infrastructure investment with minimal regulatory lag In effect since 2003 Missouri Public Service Commission five members appointed by Governor (also appoints the Chairman) William P. Kenney (R) Jan Maida Coleman (D) Aug Daniel Y. Hall (D) Sept Ryan Silvey (R), Chairman Jan Scott T. Rupp (R) Apr RRA is Regulatory Research Associates. 22

23 Missouri regulatory and legislative update State regulatory framework improved in 2018 with passage of electric and water utility legislation As a result of our recently completed rate cases, we now have Regulatory certainty in key areas, including ROE and capital structure Full residential weather normalization $8M increase in annual ISRS revenues, effective on Oct. 8th We are assessing our regulatory and legislative strategy going forward We still strongly believe in the benefits of more progressive and timely rate review 23

24 Alabama regulatory summary Top-rated regulatory jurisdiction by RRA Progressive approach using forward year budget Rate Stabilization and Equalization (RSE) Annual rate-setting process with quarterly reviews for potential rate reductions Rates set based on retained shareholders equity Spire Alabama: 10.40% allowed ROE and 55.5% equity ratio Spire Gulf: 10.7% allowed ROE and 55.5% equity ratio Includes current recovery on planned capital spend Cost Control Measurement (CCM) Incentive to manage O&M costs relative to target benchmark Sharing with customers outside of band Good recovery mechanisms Gas costs, weather normalization and certain other non-recurring costs Opportunity for enhanced return for pipeline replacement (Spire Alabama s AIM) and certain infrastructure investments (Spire Gulf s CIMFR) Alabama Public Service Commission commissioners elected to 4-year term Twinkle Andress Cavanaugh, President (R) 2020 Chris Chip Beeker (R) 2022 Jeremy H. Oden (R) 2022 Spire Alabama 24

25 Mississippi regulatory summary Average-rated regulatory jurisdiction by RRA Rate Stabilization Adjustment (RSA) RSA provides for annual rate performance reviews rather than periodic rate cases Formulaic approach to ROE setting with equity capitalization currently set at 50% Rate adjustment when ROE is outside a 1% band of allowed ROE (currently 9.34%) 50% of the amount over the allowed return going to a rate reduction, or 75% of the deficiency toward a rate increase Received approval for a new fixed rate structure to be effective with new RSA Weather normalization mechanism recently approved; effective heating season Supplemental Growth (SG) Rider 3-year pilot put into place December 2015 for up to $5 million in investment Qualified industrial development projects earn a 10-year supplemental return at 12.0% ROE Mississippi Public Service Commission commissioners elected to 4-year term Brandon Presley, Chairman (D) 2020 (Northern District) Cecil Brown, Vice Chair (D) 2020 (Central District) Sam Britton (R) 2020 (Southern District) 25

26 We delivered solid FY18 performance Twelve months ended September 30, (Millions, except earnings per share) Earnings by Segment Gas Utility $ Gas Marketing Other (22.3) (20.7) Net Economic Earnings (non-gaap) 1 $ $ Net Economic Earnings Per Share (non-gaap) 1 $ 3.72 $ 3.56 Other Key Metrics Adjusted EBITDA 2 $ $ Capital Expenditures Long-Term Debt (incl. current portion) 2,076 2,095 Total Debt 2,629 2,572 % Equity to Adjusted LT Capitalization % 48.7% Average Shares Outstanding - Diluted See Net economic earnings (non-gaap) reconciliation later in Appendix. 2 See Adjusted EBITDA (non-gaap) reconciliation later in Appendix. 3 See Adjusted long-term capitalization reconciliation later in Appendix. 26

27 FY18 earnings growth Net economic earnings 1 (NEE) $183.7M, up $16.1M or 10% NEE per share $3.72 (+$0.16 or 4.5%), reflecting 4.9% share increase Gas Utility: NEE $183.1M Contribution margin 2 +$8.5M Higher demand due to the return of normal weather Higher MO ISRS and modest customer growth Offset in part by seasonal rate design change at MO utilities and lower utility rates due to tax reform O&M expense (net of write-offs) up $14.0M due to weather-driven increases in employee-related costs and bad debt expense, and higher amortization of MO benefit costs Gas Marketing: NEE up $16.1M on improved market conditions 1 See Net economic earnings (non-gaap) reconciliation later in Appendix. 2 See Contribution margin (non-gaap) reconciliation later in Appendix. 27

28 Missouri rate cases New rates went into effect on April 19 Reflect ~$70 million in cost savings from our transformative growth Authorized 9.8% ROE, utility LT capital structure and $2.0B rate base Impact (Millions) Customer rates Earnings Base rate increase $66.2 $66.2 Rate reduction for tax benefits (33.0) Current ISRS reset to zero (49.0) (49.0) Amort. of reg. assets and other (23.1) Total ($15.8) ($5.9) Aligns MO rate design: higher volumetric component and full residential weather normalization We have filed legal appeals on pensions, rate case expenses and gain on sale disallowances (written off in Q2) Write-offs from the Missouri rate cases (Millions, except per share amounts) Gross Net of tax Per share Disputed pension contributions (prior to 1997) $ (28.8) $ (17.7) NBV of property sold in 2014 (1.8) (1.1) GAAP write-offs added back to NEE $ (30.6) $ (18.8) $ (0.39) Earnings or equity-based incentives (Jan 2016 on) $ (6.9) $ (4.2) Portion of rate case expenses (0.9) (0.6) GAAP write-offs reflected in NEE $ (7.8) $ (4.8) $ (0.10) Total impact $ (38.4) $ (23.6) 28

29 Tax Cuts and Jobs Act We lowered customer rates for all utilities as a result of tax reform 1H financial results include impacts based on the available guidance, including Lowering our effective tax expense by $14.4 million, reflecting lower federal income taxes, net of amounts reflected in lower customer rates GAAP results include revaluation of deferred taxes totaling $54 million (excluded from NEE) 2018 impact Cash flow will be reduced by ~$40 million annually due to lower customer rates Interest deductibility will likely be retained due to our largely regulated mix and growing non-regulated EBITDA Impact of tax reform (Millions, except per share amounts) Net impact Per share Non-cash benefit from the revaluation of net deferred tax liabilities GAAP benefit excluded from NEE $ 54.0 $ 1.10 Lower income tax expense, net amounts reflected in customer rates Included in both GAAP and NEE $ 14.4 $

30 Income tax expense Year ended September 30, Quarter ended September 30, (Millions) GAAP expense (benefit) before ADIT amortization 1 $ (23.0) $ 77.6 $ (14.5) $ (6.7) Amortization of excess ADIT (3.5) (3.5) GAAP income tax expense (benefit) $ (26.5) $ 77.6 $ (18.0) $ (6.7) Benefit from revaluation of net def. tax liab. (TCJA) Other tax adjustments (0.6) - Run rate income tax expense (benefit) $ 34.9 $ 77.6 $ (12.5) $ (6.7) Effective tax rate 18.6% 32.4% 28.5% 33.5% Income taxes includes the non-cash benefit from revaluing net deferred tax liabilities for the Tax Cuts and Jobs Act using current Treasury guidance Net of those benefits, the effective tax rate for 2018 was 18.6% Lower than prior year due to tax reform Includes the benefit of amortizing excess ADIT returned to Missouri customers 2019 effective tax rate anticipated to be 17% - 18%, reflecting a full 12-month amortization of excess ADIT amortization 1 Excess Accumulated Deferred Income Taxes (ADIT). 30

31 Net economic earnings per share (non-gaap) reconciliation Total Spire Fiscal year ended September 30, Diluted Earnings Per Share (GAAP) $2.79 $2.02 $2.35 $3.16 $3.24 $3.43 $4.33 Adjustments, pre-tax: Missouri regulatory adjustments 0.62 Unrealized (gain) loss on energy-related derivatives (0.02) 0.04 (0.04) (0.07) 0.13 (0.08) Lower of cost or market inventory adjustments 0.05 (0.03) Realized loss (gain) on economic hedges prior to the sale of the physical commodity 0.01 (0.01) 0.06 (0.04) (0.01) (0.01) Acquisition, divestiture and restructuring activities Gain on sale of property (0.18) Income tax effect of adjustments 1 (0.29) (0.31) (0.02) (0.06) (0.08) (0.21) Effects of the Tax Cuts and Jobs Act Weighted average shares adjustment Net Economic Earnings Per Share 2 (Non-GAAP) $2.79 $2.87 $3.05 $3.19 $3.42 $3.56 $3.72 (1.21) 1 Income tax effect of adjustments is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of pre-tax reconciling items. 2 Net economic earnings (NEE) per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted earnings per share calculation. Also, NEE per share exclude the impact of the equity offerings to fund the acquisitions of Spire MO West, Spire Alabama, and Spire EnergySouth in fiscal years 2013, 2014, and 2016, respectively. The weighted average shares used in the NEE per share calculation and the GAAP diluted EPS calculation were 22.5 million and 26.0 million, respectively, for FY13; 32.7 million and 35.9 million, respectively, for FY14; and 43.5 million and 44.3 million, respectively, for FY16. 31

32 Net economic earnings (non-gaap) reconciliation (Millions, except per share amounts) Gas Utility Gas Marketing Other Consolidated Per diluted share 2 Year ended September 30, 2018 Net Income (GAAP) $ $ 24.9 $ 44.9 $ $ 4.33 Adjustments, pre-tax: Missouri regulatory adjustments Unrealized gain on energy-related derivatives (4.0) (4.0) (0.08) Realized gain on economic hedges prior to the sale of the physical commodity (0.3) (0.3) (0.01) Acquisition, divestiture and restructuring activities Income tax effect of adjustments 1 (9.1) 1.2 (2.4) (10.3) (0.21) Effects of the Tax Cuts and Jobs Act (78.2) (60.1) (1.21) Net Economic Earnings (Loss) (Non-GAAP) $ $ 22.9 $ (22.3) $ $ 3.72 Diluted EPS (GAAP) $ 2.92 $ 0.50 $ 0.91 $ 4.33 Net Economic EPS (Non-GAAP) 2 $ 3.71 $ 0.46 $ (0.45) $ 3.72 Year ended September 30, 2017 Net Income (Loss) (GAAP) $ $ 3.4 $ (22.3) $ $ 3.43 Adjustments, pre-tax: Unrealized loss on energy-related derivatives Realized gain on economic hedges prior to the sale of the physical commodity (0.3) (0.3) (0.01) Acquisition, divestiture and restructuring activities Income tax effect of adjustments 1 (0.6) (2.2) (0.9) (3.7) (0.08) Net Economic Earnings (Loss) (Non-GAAP) $ $ 6.8 $ (20.7) $ $ 3.56 Diluted EPS (GAAP) $ 3.83 $ 0.07 $ (0.47) $ 3.43 Net Economic EPS (Non-GAAP) 2 $ 3.86 $ 0.14 $ (0.44) $ Income tax effect is calculated by applying federal, state, and local income tax rates applicable to ordinary income to the amounts of the pre-tax reconciling items and then adding any estimated effects of enacted state or local income tax laws for periods before the related effective date. 2 Net economic earnings per share is calculated by replacing consolidated net income with consolidated net economic earnings in the GAAP diluted EPS calculation. 32

33 Contribution margin (non-gaap) reconciliation (Millions) Gas Utility Gas Marketing Other Eliminations Consolidated Year ended September 30, 2018 Operating Income (Loss) (GAAP) $ $ 33.8 $ (16.3) $ $ Operation and maintenance (10.1) Depreciation and amortization Taxes, other than income taxes Less: Gross receipts tax expense (98.3) (0.1) (98.4) Contribution Margin (non-gaap) (10.1) Natural and propane gas costs (1.4) Gross receipts tax expense Operating Revenues (GAAP) $ 1,888.4 $ 71.6 $ 16.5 $ (11.5) $ 1,965.0 Year ended September 30, 2017 Operating Income (Loss) (GAAP) $ $ 5.2 $ (5.1) $ $ Operation and maintenance (5.5) Depreciation and amortization Taxes, other than income taxes Less: Gross receipts tax expense (83.0) (0.1) (83.1) Contribution Margin (non-gaap) (5.5) Natural and propane gas costs (8.7) Gross receipts tax expense Operating Revenues (GAAP) $ 1,667.9 $ 79.3 $ 7.7 $ (14.2) $ 1,

34 Adjusted EBITDA 1 (non-gaap) reconciliation (Millions) Net Income $ $ Add back: Year ended September 30, Interest charges Regulatory asset write-offs Income tax (benefit) expense (26.5) 77.6 Depreciation & amortization EBITDA $ $ Adjusted long-term capitalization reconciliation As of September 30, 2018 As of September 30, 2017 (Millions) Equity Debt Total Equity Debt Total Capitalization per balance sheet $ 2,263.3 $ 1,900.1 $ 4,163.4 $ 1,991.3 $ 1,995.0 $ 3,986.3 Current portion of long-term debt Adjusted long-term capitalization $ 2,263.3 $ 2,075.6 $ 4,338.9 $ 1,991.3 $ 2,095.0 $ 4,086.3 % of Total 52.2% 47.8% 100.0% 48.7% 51.3% 100.0% 1 Adjusted EBITDA is Earnings before interest, income taxes, depreciation and amortization, plus largely non-cash write-offs related to Missouri rate cases. 2 Largely non-cash, pre-tax impacts of regulatory asset and expense write-offs disallowed in Missouri rate cases. Note: Redeemable noncontrolling interest included in Equity ($7.9M) as of September 30,