ST. LOUIS - Spire Inc. (NYSE: NYSE:SR), a leading natural gas company, announced a forthcoming change in its executive team today. Steve Rasche is set to retire from his role as the company's executive vice president and chief financial officer on January 1, 2025. Rasche, who has been with Spire since 2009 and stepped into the CFO role in 2013, will continue to serve as a senior adviser until his retirement on April 1, 2025. Adam Woodard, currently vice president and treasurer, is appointed to succeed Rasche.
During Rasche's tenure as CFO, Spire experienced significant growth, becoming one of the largest publicly traded natural gas companies in the United States. Steve Lindsey, Spire's president and CEO, acknowledged Rasche's contributions, stating, "He has built an incredibly solid team and under his leadership, he has guided Spire through a remarkable growth trajectory."
Woodard, who has been with Spire since 2018, will assume the CFO responsibilities, overseeing accounting, treasury, investor relations, financial planning and analysis, and supply chain functions. He will also maintain his role in strategy and corporate development. Before joining Spire, Woodard had a 21-year career with A.G. Edwards & Sons and Wells Fargo (NYSE:WFC) Securities, where he specialized in the energy sector.
Additionally, Tim Krick, currently vice president and controller, will take on the role of chief accounting officer for Spire. Krick has been part of Spire's finance team for nearly 11 years and has a decade of previous accounting experience at Sigma-Aldrich, a company based in St. Louis.
Spire serves 1.7 million homes and businesses across Alabama, Mississippi, and Missouri, with its operations extending to gas utilities, Spire Marketing, and Spire Midstream. The company emphasizes its commitment to growth through organic means, infrastructure investment, and innovation.
This transition is part of Spire's ongoing strategy to maintain leadership continuity and uphold its position in the natural gas industry. The information regarding the executive changes is based on a press release statement from Spire Inc.
In other recent news, Spire Inc. has experienced significant changes. Ladenburg Thalmann recently downgraded Spire's stock from Neutral to Sell, citing increased regulatory uncertainty. This decision was prompted by a whistleblower complaint from a former employee, alleging that Spire's regulatory staff were instructed to dispose of documents relevant to an upcoming rate case. Despite this, Spire maintains that the potential investigation will not affect its upcoming Missouri rate case.
In a strategic financial move, Spire Missouri, a Spire Inc. subsidiary, issued $320 million in First Mortgage Bonds due 2034. The funds from these bonds will be used to manage debt and for general corporate purposes.
Spire Inc. also reported an improvement in its fiscal third quarter of 2024, reducing its net economic earnings loss to $0.14 per share from a $0.42 per share loss the previous year. This is attributed to a focus on cost management and economic development initiatives. Spire's recent acquisition of MoGas and the inclusion of Salt Plains have contributed to earnings, and new rates in Missouri and Alabama have benefited the company's gas utilities. These are recent developments in Spire's ongoing strategic initiatives.
InvestingPro Insights
As Spire Inc. (NYSE: SR) prepares for this significant leadership transition, InvestingPro data offers valuable context for investors. The company's market capitalization stands at $3.87 billion, reflecting its substantial presence in the natural gas industry. Spire's price-to-earnings ratio of 15.86 suggests a reasonable valuation relative to its earnings, which could be attractive to value-oriented investors.
Notably, Spire has demonstrated a strong commitment to shareholder returns. According to InvestingPro Tips, the company has raised its dividend for 21 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This track record aligns with the company's emphasis on stable growth and shareholder value, as mentioned in the article. The current dividend yield of 4.69% may be particularly appealing to income-focused investors.
Despite the upcoming change in financial leadership, Spire's financials appear solid. The company reported a revenue of $2.61 billion in the last twelve months, with a gross profit margin of 36.5%. The operating income margin of 18.09% indicates efficient management of operational costs, which bodes well for the incoming CFO, Adam Woodard.
InvestingPro Tips also reveal that Spire generally trades with low price volatility, which could be reassuring for investors during this transition period. Additionally, the stock is trading near its 52-week high, suggesting market confidence in the company's prospects and management decisions.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for Spire Inc., providing a more comprehensive view of the company's financial health and market position.
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