- Court ruling could shut down its STL Pipeline, potentially costing the company $0.35 a share in annual earnings and a $5.00 per share asset write off.
- This action marks a rare case where a court has revoked a FERC-issued pipeline certificate after a project was already operational. The legal question: did the permitting process determine “need”?
- Management responded the STL Pipeline saved its ratepayer $300 million in gas costs during the deadly Winter Storm Uri, and is justification of the “need".
- On price weakness, the 7.1% yield convertible equity units SRCU could be preferred over the common.
For further details see:
Spire Inc.: Natural Gas Utility Facing Precedent-Setting Pipeline Shutdown