We reported a consolidated net loss of $21.6 million, 0r ($0.48) per diluted share, compared to a prior-year net loss of $1.4 million, or ($0.10) per share. Net economic earnings (NEE) were a loss of $18.6 million, or ($0.42) per share, compared to earnings of $4.1 million, or $0.01 per share, last year, reflecting lower results across our businesses as discussed below.

Gas Utility

The Gas Utility segment includes the regulated distribution operations of our five gas utilities across Alabama, Mississippi and Missouri. Gas Utility reported a seasonal loss on an NEE basis of $12.3 million, compared to earnings of $4.2 million in the prior year. The lower results reflect the timing of prior-year regulatory adjustments, lower usage and higher costs.

Contribution margin decreased $2.5 million from the prior year. Spire Missouri's margin was $4.1 million higher as new rates were only partially offset by lower usage. Spire Alabama margins were below last year by $4.9 million, reflecting ineffective weather mitigation and the timing of prior-year regulatory adjustments under Cost Control Measure. Spire Gulf margins trailed last year by $1.7 million on lower residential usage. Across our gas utilities, weather during the quarter was 18% warmer than normal and 22% warmer than the prior year, which impacted usage, especially in the early spring.

Operation and maintenance (O&M) expenses of $111.7 million were $16.7 million higher than a year ago, or $8.4 million higher after removing a $8.3 million non-service cost transfer to other income (no earnings impact). The net O&M increase was largely attributable to $6 million of Spire Missouri overhead costs that are being expensed in 2023 but were deferred last year. The remainder of the increase was due to slightly higher operations and customer service expenses, partially offset by lower employee-related expenses.

Depreciation and amortization expense increased $3.6 million from last year, reflecting increased capital investment in our gas utilities. Taxes other than income taxes increased $2.9 million due to higher gross receipts taxes, which are passed through to customers.

Gas Utility interest expenses, net of carrying cost credits at Spire Missouri, were $31.1 million compared to $20.1 million in the prior year due to sustained higher average borrowing levels at higher interest rates in support of capital expenditures and other working capital items that remain to be collected from customers.

Gas Marketing

The Gas Marketing segment includes the results of Spire Marketing, which provides natural gas marketing services throughout the United States. NEE, which excludes mark-to-market and other fair value adjustments, was a loss of $2.5 million, compared to earnings of $0.4 million in the prior year. The lower earnings were driven by less favorable conditions and higher demand charges and storage costs.

Midstream

NEE of $3.6 million for the Midstream segment, which includes Spire STL Pipeline and Spire Storage West, declined $0.7 million from the prior year due to the timing of short-term storage optimization activities.

Other

Corporate costs, on an NEE basis, totaled $7.4 million, up from $4.8 million a year ago, reflecting higher interest expense and corporate costs.