<PAGE>

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D. C. 20549
                                  FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the Quarter Ended June 30, 2003
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934


<TABLE>
<CAPTION>
     -------------------------------------------------------------------------------------------------------
     Commission File    Exact Name of Registrant as            State of              I.R.S.
     Number             Specified in its Charter and           Incorporation         Employer
                        Principal Office Address and                                 Identification
                        Telephone Number                                             Number
     -------------------------------------------------------------------------------------------------------
<S>                     <C>                                    <C>                   <C>
     1-16681            The Laclede Group, Inc.                Missouri              74-2976504
                        720 Olive Street
                        St. Louis, MO 63101
                        314-342-0500
     -------------------------------------------------------------------------------------------------------
     1-1822             Laclede Gas Company                    Missouri              43-0368139
                        720 Olive Street
                        St. Louis, MO 63101
                        314-342-0500
     -------------------------------------------------------------------------------------------------------
</TABLE>


Indicate by check mark whether the registrant:

(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such report),

          The Laclede Group, Inc.:                    Yes  X            No
                                                          ---              ---

          Laclede Gas Company:                        Yes  X            No
                                                          ---              ---

and (2) has been subject to such filing requirements for the past 90 days:

          The Laclede Group, Inc.:                    Yes  X            No
                                                          ---              ---

          Laclede Gas Company:                        Yes  X            No
                                                          ---              ---

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act):

          The Laclede Group, Inc.                     Yes  X            No
                                                          ---              ---
          Laclede Gas Company:                        Yes               No  X
                                                          ---              ---

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date:

<TABLE>
<CAPTION>
                                                                         Shares Outstanding At
Registrant                    Description of Common Stock                    July 25, 2003
----------                    ---------------------------                    -------------
<S>                           <C>                                            <C>
The Laclede Group, Inc.       Common Stock ($1.00 Par Value)                 19,078,853
Laclede Gas Company           Common Stock ($1.00 Par Value)                        100   (100% owned by
                                                                                           Laclede Group)

</TABLE>

                                     1


<PAGE>
<PAGE>


<TABLE>
<CAPTION>
TABLE OF CONTENTS                                                                       Page No.
                                                                                        --------

<S>                                                                                    <C>
PART I. FINANCIAL INFORMATION

Item 1   Financial Statements

         The Laclede Group, Inc.:
                  Statements of Consolidated Income                                         4
                  Statements of Consolidated Comprehensive Income                           5
                  Consolidated Balance Sheets                                               6-7
                  Statements of Consolidated Cash Flows                                     8
                  Notes to Consolidated Financial Statements                                9-17

         Laclede Gas Company:
                  Statements of Income                                                 Ex. 99.1, p. 1
                  Balance Sheets                                                       Ex. 99.1, p. 2-3
                  Statements of Cash Flows                                             Ex. 99.1, p. 4
                  Notes to Financial Statements                                        Ex. 99.1, p. 5-10


Item 2   Management's Discussion and Analysis of Financial Condition and
                  Results of Operations (The Laclede Group, Inc.)                          18-26
         Management's Discussion and Analysis of Financial Condition and
                  Results of Operations (Laclede Gas Company)                          Ex. 99.1, p. 11-19

Item 3   Quantitative and Qualitative Disclosures About Market Risk                        27

Item 4   Controls and Procedures                                                           27

PART II. OTHER INFORMATION

Item 1   Legal Proceedings                                                                 28

Item 6   Exhibits and Other Reports on Form 8-K                                            28

SIGNATURES - The Laclede Group, Inc.                                                       29

SIGNATURES - Laclede Gas Company                                                           30

INDEX TO EXHIBITS                                                                          31
</TABLE>

Filing Format
-------------
This Quarterly Report on Form 10-Q is a combined report being filed by two
separate registrants: The Laclede Group, Inc. (Laclede Group or the Company)
and Laclede Gas Company (Laclede Gas or the Utility).

Effective October 1, 2001, Laclede Gas and its subsidiaries became
subsidiaries of The Laclede Group. At that time stock certificates
previously representing shares of Laclede Gas common stock were deemed to
represent the same number of shares of The Laclede Group common stock. All
of the former subsidiaries of Laclede Gas (Laclede Investment LLC, Laclede
Energy Resources, Inc., Laclede Gas Family Services, Inc., Laclede
Development Company, Laclede Venture Corp. and Laclede Pipeline Company) are
now subsidiaries of Laclede Group.


                                     2

<PAGE>
<PAGE>


                                   PART I
                            FINANCIAL INFORMATION

The interim financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. These financial statements should be
read in conjunction with the financial statements and the notes thereto
included in the Company's Form 10-K for the year ended September 30, 2002.



                                     3

<PAGE>
<PAGE>


Item 1. Financial Statements

<TABLE>
                                           THE LACLEDE GROUP, INC.
                                      STATEMENTS OF CONSOLIDATED INCOME
                                                 (UNAUDITED)
<CAPTION>
(Thousands, Except Per Share Amounts)
                                                            Three Months Ended           Nine Months Ended
                                                                June 30,                     June 30,
                                                           2003           2002          2003           2002
                                                           ----           ----          ----           ----
<S>                                                      <C>            <C>           <C>            <C>
Operating Revenues:
  Regulated
     Gas distribution                                    $114,207       $ 87,284      $688,828       $527,297
  Non-Regulated
     Services                                              27,276         39,482        75,414         54,756
     Gas marketing                                         41,762         19,650       118,903         44,029
     Other                                                  3,350            844         5,800          3,285
                                                   -----------------------------------------------------------
      Total Operating Revenues                            186,595        147,260       888,945        629,367
                                                   -----------------------------------------------------------
Operating Expenses:
  Regulated
    Natural and propane gas                                60,293         41,565       442,054        313,274
    Other operation expenses                               27,097         25,497        88,084         80,577
    Maintenance                                             4,583          4,547        13,977         13,179
    Depreciation and amortization                           5,579          6,106        16,668         18,741
    Taxes, other than income taxes                         11,553          9,752        48,260         41,088
                                                   -----------------------------------------------------------
      Total regulated operating expenses                  109,105         87,467       609,043        466,859
  Non-Regulated
    Services                                               24,801         35,874        78,161         54,054
    Gas marketing                                          40,381         19,058       115,228         43,594
    Other                                                   3,185            898         5,269          3,122
                                                   -----------------------------------------------------------
      Total Operating Expenses                            177,472        143,297       807,701        567,629
                                                   -----------------------------------------------------------
Operating Income                                            9,123          3,963        81,244         61,738
Other Income and (Income Deductions) - Net                     12            (55)          469            694
                                                   -----------------------------------------------------------
Income Before Interest and Income Taxes                     9,135          3,908        81,713         62,432
                                                   -----------------------------------------------------------
Interest Charges:
  Interest on long-term debt                                4,945          5,205        15,355         15,615
  Preferred dividends and subsidiary trust
   distributions                                              866              -         1,877              -
  Other interest charges                                      810          1,129         3,112          3,868
                                                   -----------------------------------------------------------
      Total Interest Charges                                6,621          6,334        20,344         19,483
                                                   -----------------------------------------------------------
Income (Loss) Before Income Taxes                           2,514         (2,426)       61,369         42,949
Income Tax Expense (Benefit)                                  476         (1,532)       22,635         15,350
                                                   -----------------------------------------------------------
Net Income (Loss)                                           2,038           (894)       38,734         27,599
Dividends on Redeemable Preferred Stock -
 Laclede Gas                                                   16             16            47             52
                                                   -----------------------------------------------------------
Net Income (Loss) Applicable to Common Stock             $  2,022       $   (910)     $ 38,687       $ 27,547
                                                   ===========================================================

Average Number of Common Shares Outstanding                19,044         18,878        19,002         18,878

Basic Earnings (Loss) Per Share of Common Stock              $.11          $(.05)        $2.04          $1.46

Diluted Earnings (Loss) Per Share of Common Stock            $.11          $(.05)        $2.04          $1.46

Dividends Declared Per Share of Common Stock                $.335          $.335        $1.005         $1.005
See notes to consolidated financial statements.
</TABLE>


                                     4

<PAGE>
<PAGE>

<TABLE>
                                            THE LACLEDE GROUP, INC.
                                STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
                                                  (UNAUDITED)


<CAPTION>
(Thousands)

                                                       Three Months Ended           Nine Months Ended
                                                            June 30,                     June 30,
                                                        2003        2002           2003           2002
                                                        ----        ----           ----           ----

<S>                                                    <C>          <C>           <C>           <C>
Net Income                                             $2,022       $(910)        $38,687       $27,547
                                                --------------------------------------------------------
Other Comprehensive Income:
  Net gains on cash flow hedging
   derivative instruments:
     Net hedging gain arising during period               259           -             519             -
     Less: Reclassification adjustment for
      gains included in net income                        229           -             229             -
                                                --------------------------------------------------------
     Net unrealized gains on cash flow
      hedging derivative instruments                       30           -             290             -
                                                --------------------------------------------------------
Other Comprehensive Income, Before Tax                     30           -             290             -
Income Tax Expense Related to
 Items of Other Comprehensive Income                       11           -             112             -
                                                --------------------------------------------------------
Other Comprehensive Income, Net of Tax                     19           -             178             -
                                                --------------------------------------------------------
Comprehensive Income                                   $2,041       $(910)        $38,865       $27,547
                                                ========================================================
</TABLE>


                                     5

<PAGE>
<PAGE>


<TABLE>
                                        THE LACLEDE GROUP, INC.
                                      CONSOLIDATED BALANCE SHEETS

<CAPTION>
                                                                            June 30          Sept. 30
                                                                             2003              2002
                                                                            -------          --------

                                                                                     (Thousands)

                                                                           (UNAUDITED)
<S>                                                                        <C>              <C>
                        ASSETS
Utility Plant                                                              $1,018,482       $  988,747
  Less: Accumulated depreciation and amortization                             406,482          394,371
                                                                        ------------------------------
      Net Utility Plant                                                       612,000          594,376
                                                                        ------------------------------
Goodwill                                                                       28,124           27,455
                                                                        ------------------------------
Other Property and Investments                                                 44,291           46,986
                                                                        ------------------------------

Current Assets:
  Cash and cash equivalents                                                     7,274           12,870
  Accounts receivable                                                         109,845           94,010
  Allowances for doubtful accounts                                             (5,415)          (4,532)
  Materials, supplies, and merchandise at avg. cost                             4,342            4,364
  Natural gas stored underground at LIFO cost                                  51,870           77,121
  Propane gas at FIFO cost                                                     12,473           14,712
  Delayed customer billings                                                    16,778                -
  Deferred income taxes                                                         6,332           12,305
  Prepayments and other                                                         8,869           11,505
                                                                        ------------------------------
      Total Current Assets                                                    212,368          222,355
                                                                        ------------------------------

Deferred Charges:
  Prepaid pension cost                                                        110,662          114,313
  Regulatory assets                                                            72,266           72,484
  Other                                                                         6,052            3,904
                                                                        ------------------------------
      Total deferred charges                                                  188,980          190,701
                                                                        ------------------------------
Total Assets                                                               $1,085,763       $1,081,873
                                                                        ==============================

See notes to consolidated financial statements.


                                     6

<PAGE>
<PAGE>


<CAPTION>
                                          THE LACLEDE GROUP, INC.
                                  CONSOLIDATED BALANCE SHEETS (Continued)

                                                                             June 30        Sept. 30
                                                                               2003          2002
                                                                             -------        --------

                                                                       (Thousands, except share amounts)

                                                                           (UNAUDITED)
<S>                                                                        <C>             <C>
                 CAPITALIZATION AND LIABILITIES
Capitalization:
  Common stock (50,000,000 shares authorized, 19,046,235 and
   18,921,287 shares issued, respectively)                                 $   19,046      $   18,921
  Paid-in capital                                                              67,521          64,667
  Retained earnings                                                           222,105         202,517
  Accumulated other comprehensive loss                                           (161)           (339)
                                                                         -----------------------------
      Total common stock equity                                               308,511         285,766
  Redeemable preferred stock - Laclede Gas                                      1,258           1,266
  Obligated mandatorily redeemable preferred securities of
   subsidiary trust                                                            45,000               -
  Long-term debt (less sinking fund requirements) - Laclede Gas               259,607         259,545
                                                                         -----------------------------
      Total Capitalization                                                    614,376         546,577
                                                                         -----------------------------

Current Liabilities:
  Notes payable                                                               128,860         161,670
  Accounts payable                                                             63,226          45,707
  Advance customer billings                                                         -          24,832
  Current portion of long-term debt                                                 -          25,000
  Taxes accrued                                                                25,110           9,815
  Unamortized purchased gas adjustment                                          1,898          22,976
  Other                                                                        43,866          46,797
                                                                         -----------------------------
      Total Current Liabilities                                               262,960         336,797
                                                                         -----------------------------

Deferred Credits and Other Liabilities:
  Deferred income taxes                                                       155,481         157,378
  Unamortized investment tax credits                                            5,394           5,629
  Pension and postretirement benefit costs                                     20,489          14,658
  Other                                                                        27,063          20,834
                                                                         -----------------------------
      Total Deferred Credits and Other Liabilities                            208,427         198,499
                                                                         -----------------------------
Total Capitalization and Liabilities                                       $1,085,763      $1,081,873
                                                                         =============================

See notes to consolidated financial statements.
</TABLE>



                                     7

<PAGE>
<PAGE>

<TABLE>
                                        THE LACLEDE GROUP, INC.
                                STATEMENTS OF CONSOLIDATED CASH FLOWS
                                             (UNAUDITED)

<CAPTION>
                                                                                  Nine Months Ended
                                                                                       June 30,
                                                                                 2003           2002
                                                                                 ----           ----

                                                                                     (Thousands)
<S>                                                                            <C>            <C>
Operating Activities:
  Net Income                                                                   $ 38,734       $ 27,599
  Adjustments to reconcile net income
   to net cash provided by (used in) operating activities:
    Depreciation and amortization                                                18,901         19,963
    Deferred income taxes and investment
     tax credits                                                                  4,899         (7,834)
    Other - net                                                                     450            685
    Changes in assets and liabilities:
      Accounts receivable - net                                                 (14,952)         3,192
      Unamortized purchased gas adjustments                                     (21,078)        (7,306)
      Deferred purchased gas costs                                                6,257         24,244
      Delayed customer billings - net                                           (41,610)        (8,496)
      Accounts payable                                                           17,519          7,563
      Taxes accrued                                                              15,295          8,674
      Natural gas stored underground                                             25,251         44,660
      Other assets and liabilities                                                9,100         (2,230)
                                                                          -----------------------------
          Net cash provided by operating activities                            $ 58,766       $110,714
                                                                          -----------------------------

Investing Activities:
  Construction expenditures                                                     (35,824)       (37,109)
  Employee benefit trusts                                                          (151)            32
  Acquisition of SM&P, net of cash and cash equivalents                               -        (38,044)
  Other investments                                                                 556         (1,056)
                                                                          -----------------------------
          Net cash used in investing activities                                $(35,419)      $(76,177)
                                                                          -----------------------------

Financing Activities:
  Maturity of first mortgage bonds                                              (25,000)             -
  Repayment of short-term debt - net                                            (32,810)        (3,740)
  Dividends paid                                                                (19,104)       (19,024)
  Issuance of common stock                                                        2,979              -
  Issuance of obligated mandatorily redeemable preferred
   Securities of subsidiary trust                                                45,000              -
  Preferred stock reacquired                                                         (8)          (395)
                                                                          -----------------------------
          Net cash used in financing activities                                $(28,943)      $(23,159)
                                                                          -----------------------------

Net Increase (Decrease) in Cash and Cash Equivalents                           $ (5,596)      $ 11,378
Cash and Cash Equivalents at Beg of Period                                       12,870          3,223
                                                                          -----------------------------
Cash and Cash Equivalents at End of Period                                     $  7,274       $ 14,601
                                                                          =============================

Supplemental Disclosure of Cash Paid
 During the Period for:
    Interest                                                                   $ 22,120       $ 19,565
    Income taxes                                                                    473         10,777

See notes to consolidated financial statements.
</TABLE>


                                     8

<PAGE>
<PAGE>


                           THE LACLEDE GROUP, INC.
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.)      These notes are an integral part of the accompanying consolidated
         financial statements of The Laclede Group, Inc. (Laclede Group or
         the Company) and its subsidiaries. In the opinion of Laclede Group,
         this interim report includes all adjustments (consisting of only
         normal recurring accruals) necessary for the fair presentation of
         the results of operations for the periods presented. Certain
         prior-period amounts have been reclassified to conform to
         current-period presentation. This Form 10-Q should be read in
         conjunction with the Notes to Financial Statements contained in the
         Company's Fiscal Year 2002 Form 10-K.

2.)      On December 16, 2002, Laclede Capital Trust I (Trust), a wholly
         owned Delaware Statutory trust of Laclede Group, issued $45 million
         of 7.70% Trust Preferred Securities with a liquidation value of $25
         per share due December 1, 2032. These securities can be redeemed on
         or after December 16, 2007. All of the proceeds from the sale of
         the Trust Preferred Securities were invested by the Trust in
         debentures of Laclede Group with the same economic terms as the
         Trust Preferred Securities. Net proceeds of approximately $43.3
         million from the sale of these debentures were used to repay the
         $42.8 million bank note obtained in January 2002 to fund the
         acquisition of SM&P, and for other general corporate purposes.

         The Trust Preferred Securities sold by the Trust represent
         preferred beneficial interests and 97% beneficial ownership in the
         assets held by the Trust. In exchange for the funds realized from
         the sale of the Trust Preferred Securities and Trust common
         securities representing 3% beneficial ownership interest in the
         assets held by the Trust, Laclede Group issued $46.4 million of
         junior subordinated debt instruments that constitute 100% of the
         assets of the Trust.

         The Trust Preferred Securities are rated A- (stable outlook) by
         Standard & Poor's Ratings Group (S&P), Baa3 (stable outlook) by
         Moody's Investors Service, Inc. and BBB+ (negative outlook) by
         Fitch Ratings. These ratings remain subject to review and change by
         the rating agencies.

3.)      On October 3, 2002, the Missouri Public Service Commission (MoPSC or
         the Commission) approved a settlement reached among the parties to
         the 2002 rate case, filed by Laclede Gas Company (Laclede Gas or
         the Utility) on January 25, 2002. The terms of the settlement
         included (1) an annual rate increase of $14 million effective on
         November 9, 2002; (2) a moratorium on additional rate filings
         until March 1, 2004; and (3) an innovative rate design that is
         expected to provide the Utility with the ability to recover its
         distribution costs, which are essentially fixed, in a manner that
         is significantly less sensitive to weather. The settlement also
         provided for, among other things, changes resulting in negative
         amortization of the depreciation reserve of $3.4 million annually
         effective from July 1, 2002 until the Utility's next rate case
         proceeding, minor changes in depreciation rates effective January
         1, 2003, and changes in the regulatory treatment of pension costs
         primarily designed to stabilize such costs, effective beginning
         fiscal 2003. Also approved was an incentive program beginning in
         fiscal 2003 under which the Utility may achieve, under specific
         conditions, income related to management of its gas supply
         commodity costs. Previously deferred costs of $.3 million are
         being recovered and amortized on a straight-line basis over a
         ten-year period, without return on investment, effective with
         implementation of the new rates, in addition to certain amounts
         authorized previously.

4.)      On January 28, 2002, Laclede Group completed its acquisition from
         NiSource, Inc. of 100% of the stock of SM&P Utility Resources,
         Inc. (SM&P), one of the nation's major underground locating and
         marking service businesses. SM&P, a Carmel, Indiana-based company,
         operates in the midwestern states. Locators mark the placement of
         underground facilities for major providers of telephone, natural
         gas, electric, water, cable TV and fiber optic services so that
         construction work can be performed without damaging buried
         facilities. As a result of the acquisition, SM&P's earnings flow
         is expected to diversify Laclede Group's earnings and be
         counter-seasonal to those of Laclede Gas. SM&P is a subsidiary of
         Laclede Group and remains headquartered in Indiana. This
         acquisition was financed initially with conventional bank debt
         totaling $42.8 million, that was refinanced through the issuance
         of Laclede Capital Trust I Preferred Securities on December 16,
         2002.

         The following table summarizes the fair values of the assets
         acquired and liabilities assumed at the date of acquisition. The
         goodwill recognized in this transaction is fully deductible for tax
         purposes. Acquired intangible assets of $498,000 were assigned to
         registered trademarks that are not subject to amortization. Net
         assets acquired includes cash and cash equivalents of $5.1 million.


                                     9


<PAGE>
<PAGE>

                                                           At January 28, 2002
                                                           -------------------
                                                                (Thousands)
         Current assets                                            $20,578
         Property, plant, and equipment                              7,457
         Other assets                                                  456
         Intangible assets                                             498
         Goodwill                                                   28,124
                                                                   -------
              Total assets acquired                                $57,113
                                                                   -------

         Current liabilities                                       $13,571
         Long-term liabilities                                         404
                                                                   -------
              Total liabilities assumed                            $13,975
                                                                   -------

              Net assets acquired                                  $43,138
                                                                   =======

         The fair values of assets acquired and liabilities assumed at the
         date of acquisition were adjusted to final valuation amounts during
         the quarter ended March 31, 2003, resulting in an increase to
         goodwill amounting to approximately $662,000.

         SM&P's earnings are impacted by construction trends. SM&P's
         revenues are dependent on a limited number of customers, primarily
         in the utility and telecommunications sector, with contracts that
         may be terminated on as short as 30 days' notice. For more
         information, see Note 11 on page 13.

5.)      The consolidated financial position, results of operations and cash
         flows of Laclede Group are comprised primarily from the
         consolidated financial position, results of operations and cash
         flows of Laclede Gas. Laclede Gas is a natural gas distribution
         utility having a material seasonal cycle. As a result, these
         interim statements of income for Laclede Group are not necessarily
         indicative of annual results or representative of succeeding
         quarters of the fiscal year. Due to the seasonal nature of the
         business of Laclede Gas, earnings are typically concentrated in
         the November through April period, which generally corresponds
         with the heating season. The Utility typically experiences losses
         during the non-heating season. This seasonal effect on Laclede
         Group is expected to be tempered somewhat by the impact of the
         weather mitigation rate design implemented in November 2002 and
         the addition of SM&P, whose operations tend to be counter-seasonal
         to those of Laclede Gas.

6.)      Net provision (benefit) for income taxes was as follows during the
         periods set forth below:

                                  Three Months Ended      Nine Months Ended
                                       June 30,                June 30,
                                 -------------------     -------------------
                                   2003        2002       2003         2002
                                   ----        ----       ----         ----
                                                 (Thousands)
         Federal
           Current               $(1,774)    $(6,793)    $14,790     $19,819
           Deferred                1,782       5,554       4,090      (6,793)
         State and Local
           Current                   135      (1,277)      2,946       3,334
           Deferred                  333         984         809      (1,010)
                              -----------------------------------------------
               Total             $   476     $(1,532)    $22,635     $15,350
                              ===============================================

         In the quarter ended June 30, 2003, Laclede Gas filed an election
         with the Internal Revenue Service to change its income tax method
         of accounting for the net costs of removal for certain
         straight-line vintage property, effective with fiscal year 2002.
         The Utility changed its method of accounting for tax purposes to
         expense such costs of removal, and take any related salvage
         proceeds into income; instead of charging removal costs, net of
         salvage proceeds, to the depreciation reserve. Deductible cost of
         removal resulting from

                                     10

<PAGE>
<PAGE>

         this change in method of accounting decreased income tax expense
         by approximately $.3 million for the quarter ended June 30, 2003.

7.)      Under the Gas Supply Incentive Plan (GSIP) of Laclede Gas, the Utility
         shared with its customers certain gains and losses related to the
         acquisition and management of its gas supply assets. The
         provisions of the GSIP extended through September 30, 2001. In
         September 2001, the MoPSC ruled that the GSIP should be allowed to
         expire. The Utility requested clarification and rehearing, which
         were denied. The Utility then sought a stay of the decision, which
         was denied, and then sought a judicial review of the MoPSC's
         decision. On April 3, 2003, the Cole County Circuit Court issued
         its Order and Judgment affirming the MoPSC's decision to terminate
         the GSIP. The Company has determined that it will not seek further
         judicial review of the MoPSC's decision. However, in the 2002 rate
         case, the Commission approved a new Gas Supply Incentive Plan
         applicable only to the Company's gas supply commodity costs. In
         addition, pursuant to the 2001 rate case settlement, the MoPSC
         authorized Laclede Gas to retain all income from releases of
         pipeline capacity effective December 1, 2001. Income from releases
         of pipeline capacity was previously shared with customers under
         the terms of the GSIP. Laclede Gas will continue to retain all
         income resulting from sales outside of its traditional service
         area, as previously authorized by the Commission. Income related
         to releases of pipeline capacity and sales made outside its
         traditional service area are volatile in nature and subject to
         market conditions.

<TABLE>
<CAPTION>
                                                           Three Months Ended           Nine Months Ended
                                                                 June 30,                    June 30,
                                                            2003         2002           2003         2002
                                                            ----         ----           ----         ----
                                                                             (Thousands)
<S>                                                        <C>           <C>           <C>          <C>
         Pre-Tax Income - Capacity Release                 $1,523        $428          $2,838       $1,008
         Pre-Tax Income - Off System Sales                    408         512           7,123        3,615
                                                      ------------------------    -------------------------
         Total Pre-Tax Income                              $1,931        $940          $9,961       $4,623
                                                      ========================    =========================
</TABLE>

8.)      In the course of its business, Laclede Group's non-regulated marketing
         affiliate, Laclede Energy Resources, Inc. (LER), enters into fixed
         price commitments for the sale of natural gas to customers. LER
         manages the price risk associated with these sales by either
         closely matching the purchases of physical supplies at fixed
         prices or through the use of exchange-traded futures contracts to
         lock in margins. At June 30, 2003, LER's open positions were not
         material to Laclede Group's financial position or results of
         operations. At that same date, LER had settled futures positions
         of .6 million MmBtu of natural gas for July 2003 and open long
         positions of .56 million MmBtu for March 2004 at an average price
         of $5.19 per MmBtu. Also, LER had open short futures positions of
         .05 million MmBtu for August 2003, .01 million MmBtu for September
         2003 and .75 million MmBtu for November 2003 at average prices of
         $6.41 per MmBtu, $6.27 per MmBtu and $5.82 per MmBtu,
         respectively. These futures contracts are derivative instruments
         and management has designated these items as cash flow hedges of
         forecasted transactions. The fair values of the instruments are
         recognized on the Consolidated Balance Sheets. The change in the
         fair value of the effective portion of these hedge instruments is
         recorded, net of tax, in Other Comprehensive Income, a component
         of Common Stock Equity. These amounts will reduce or be charged to
         Non-Regulated Gas Marketing Operating Revenues or Expenses in the
         Statements of Consolidated Income as the transactions occur. It is
         expected that approximately $.2 million of the net unrealized
         gains on cash flow hedging derivative instruments at June 30, 2003
         will be reclassified into the Consolidated Statement of Income
         during fiscal 2004. The ineffective portions of these hedge
         instruments were immaterial for the periods presented, and such
         amounts are charged to Non-Regulated Gas Marketing Operating
         Revenues or Expenses. Cash flows from hedging transactions are
         classified in the same category as the cash flows from the items
         that are being hedged in the Statements of Consolidated Cash Flows.

9.)      The Laclede Group Equity Plan was approved at the annual meeting of
         shareholders of Laclede Group on January 30, 2003. The purpose of
         the Equity Plan is to provide a more competitive compensation
         program and to attract and retain those executive and other key
         employees essential to achieve the Company's strategic objectives.
         To accomplish this purpose, the compensation committee may grant
         awards under the Equity Plan that may be earned by achieving
         performance objectives and/or other criteria as determined by the
         compensation committee. Under the terms of the Equity Plan, key
         employees of the Company and its subsidiaries, as determined by
         the sole discretion of the administrator, will be eligible to
         receive (a) restricted shares of common stock, (b) performance
         awards, (c) stock options exercisable into shares of common stock,

                                     11

<PAGE>
<PAGE>

         (d) stock appreciation rights, and (e) stock units, as well as any
         other stock-based awards not inconsistent with the Equity Plan.
         Each award under the Equity Plan shall have a minimum vesting
         period of at least one year. The total number of shares that may
         be issued pursuant to awards under the Equity Plan may not exceed
         1,250,000.

         During the quarter ended March 31, 2003, the Company granted
         221,500 non-qualified stock options to employees at an exercise
         price of $23.27 per share. No option can be exercised before
         February 6, 2004. The stock options vest one-fourth each year for
         four years after the date of the grant and expire on the tenth
         anniversary of the grant date. The Company accounts for the Equity
         Plan under the recognition and measurement principles of Accounting
         Principles Board Opinion No. 25, "Accounting for Stock Issued to
         Employees", and related Interpretations. No compensation expense
         has been recognized in net income, as all options granted under the
         Equity Plan had an exercise price equal to the market value of the
         Company's stock on the date of the grant.

                                                               Weighted Average
                                                  Shares        Exercise Price
                                                  ------       ----------------

         Outstanding at March 31, 2003            221,500           $23.27

         Granted                                        -                -
         Exercised                                      -                -
         Forfeited                                (12,500)          $23.27

         Outstanding at June 30, 2003             209,000           $23.27

         Exercisable at June 30, 2003                   -

         The closing price of the Company's common stock was $26.80 at June 30,
         2003.

         If compensation expense had been determined based on the fair value
         recognition provisions of Statement of Financial Accounting
         Standards (SFAS) No. 123, Accounting for Stock-Based Compensation,
         the Company's net income and earnings per share would have been
         reduced to the amounts shown in the following table. The
         weighted-average fair value of options granted during 2003 is $4.33
         per option. The estimated fair value of options would be amortized
         to expense over the options' vesting period.

<TABLE>
<CAPTION>
                                                            Three Months Ended             Nine Months Ended
                                                                 June 30,                      June 30,
                                                            ------------------             ----------------
                                                           2003            2002           2003           2002
                                                           ----            ----           ----           ----
                                                                 (Thousands, Except Per Share Amounts)
<S>                                                       <C>             <C>           <C>            <C>
         Net income (loss) applicable to
          common stock, as reported                       $2,022          $(910)        $38,687        $27,547

         Deduct: Total stock-based employee
          compensation expense determined
          under the fair value based method
          for all awards, net of tax effects                  33              -              58              -
                                                    -----------------------------------------------------------

         Pro forma net income (loss) applicable
          to common stock                                 $1,989          $(910)        $38,629        $27,547
                                                    ===========================================================

         Earnings (loss) per share:
         Basic - as reported                                $.11          $(.05)          $2.04          $1.46
         Diluted - as reported                              $.11          $(.05)          $2.04          $1.46
         Basic - pro forma                                  $.10          $(.05)          $2.03          $1.46
         Diluted - pro forma                                $.10          $(.05)          $2.03          $1.46
</TABLE>

                                     12

<PAGE>
<PAGE>

         The fair value of the options was estimated at the date of grant
         using the Black-Scholes option pricing model with the following
         weighted-average assumptions:

                                                       2003          2002
                                                 ------------------------------
         Risk free interest rate                        4.00%   Not Applicable
         Expected dividend yield of stock               5.70%   Not Applicable
         Expected volatility of stock                  25.00%   Not Applicable
         Expected life of option                    96 months   Not Applicable


10.)     SFAS No. 128, Earnings Per Share, requires dual presentation of
         basic and diluted earnings per share (EPS). Basic EPS does not
         include potentially dilutive securities and is computed by dividing
         net income applicable to common stock by the weighted-average
         number of common shares outstanding during the period. Diluted EPS
         assumes the issuance of common shares pursuant to the Company's
         stock-based compensation plan at the beginning of each respective
         period.

<TABLE>
<CAPTION>
                                                                  Three Months Ended         Nine Months Ended
                                                                       June 30                    June 30
         (Thousands, Except Per Share Amounts)                     2003        2002           2003        2002
                                                              -----------------------    -----------------------

<S>                                                              <C>         <C>            <C>         <C>
         Basic EPS:
         Net Income Applicable to Common Stock                   $ 2,022     $  (910)       $38,687     $27,547
         Weighted-Average Shares Outstanding                      19,044      18,878         19,002      18,878
         Earnings (Loss) Per Share of Common Stock                  $.11       $(.05)         $2.04       $1.46


         Diluted EPS:
         Net Income Applicable to Common Stock                   $ 2,022     $  (910)       $38,687     $27,547

         Weighted-Average Shares Outstanding                      19,044      18,878         19,002      18,878
         Dilutive Effect of Employee Stock Options                    10           -              3           -
                                                              -----------------------    -----------------------
         Weighted-Average Diluted Shares                          19,054      18,878         19,005      18,878

         Earnings (Loss) Per Share of Common Stock                  $.11       $(.05)         $2.04       $1.46
</TABLE>


11.)     The Regulated Gas Distribution segment consists of the regulated
         operations of Laclede Gas and is the core business segment of
         Laclede Group. Laclede Gas is a public utility engaged in the
         retail distribution of natural gas serving an area in eastern
         Missouri, with a population of approximately 2.0 million,
         including the City of St. Louis, St. Louis County, and parts of
         eight other counties. The Non-Regulated Services segment includes
         the results of SM&P, an underground locating and marking business
         operating in the midwestern states, a wholly owned subsidiary of
         Laclede Group acquired on January 28, 2002. The Non-Regulated Gas
         Marketing segment includes the results of Laclede Energy
         Resources, Inc., a wholly owned subsidiary of Laclede Group as a
         result of the October 1, 2001 restructuring. Previously, LER's
         operations did not meet the quantitative thresholds to produce a
         reportable segment. Its operations are included as a reportable
         segment in the current period, and prior-period segment
         information has been reclassified. Non-Regulated Other includes
         the transportation of liquid propane, the sale of insurance
         related products, real estate development, the compression of
         natural gas, and financial investments in other enterprises. These
         operations are conducted through six wholly owned subsidiaries,
         five of which became subsidiaries of Laclede Group as a result of
         the restructuring on October 1, 2001, plus Laclede Energy
         Services, Inc. (LES), a wholly owned subsidiary of Laclede Group
         that became operational on May 1, 2002 and was dissolved on
         April 14, 2003. LES performed administrative gas supply and risk
         management services. The dissolution of LES had no material effect
         on the financial position or results of operations of Laclede
         Group. The results of SM&P's operations since January 28, 2002 and
         the results of LES' operations since May 1, 2002 are included in
         Laclede Group's Consolidated Financial Statements. There are no
         material intersegment revenues.

                                     13

<PAGE>
<PAGE>

<TABLE>
<CAPTION>
                                      Regulated                  Non-Regulated
                                         Gas       Non-Regulated      Gas        Non-Regulated
         (Thousands)                 Distribution    Services      Marketing         Other      Eliminations   Consolidated
         ------------------------------------------------------------------------------------------------------------------
<S>                                   <C>             <C>          <C>              <C>           <C>           <C>
         Three Months Ended
         June 30, 2003
         -------------
         Operating revenues           $  114,207      $27,276      $ 41,762         $ 3,339       $     11      $  186,595
         Net income
          applicable to
          common stock                        23          995           888             116              -           2,022
         Total assets                  1,004,537       57,720        32,841          28,822        (38,157)      1,085,763

         Nine Months Ended
         June 30, 2003
         -------------
         Operating revenues           $  688,828      $75,414      $118,903         $ 5,879       $    (79)     $  888,945
         Net income
          applicable to
          common stock                    39,470       (3,438)        2,221             434              -          38,687
         Total assets                  1,004,537       57,720        32,841          28,822        (38,157)      1,085,763

         Three Months Ended
         June 30, 2002
         -------------
         Operating revenues           $   87,284      $39,482      $ 19,650             844       $      -      $  147,260
         Net income
          applicable to
          common stock                    (3,376)       2,096           367               3              -            (910)
         Total assets                    926,018       60,478        16,460          31,002        (15,943)      1,018,015

         Nine Months Ended
         June 30, 2002
         -------------
         Operating revenues           $  527,297      $54,756      $ 44,029         $ 3,285       $      -      $  629,367
         Net income
          applicable to
          common stock                    27,034           63           288             162              -          27,547
         Total assets                    926,018       60,478        16,460          31,002        (15,943)      1,018,015
</TABLE>

         In November 2002, two customers notified SM&P that, due to actions
         they have taken to address workforce management issues, they did
         not intend to continue to outsource certain functions, which
         include locating services provided by SM&P, after February and
         March 2003. One of these customers notified SM&P in January 2003
         that it will continue to outsource a portion of its locating
         services provided by SM&P beyond that timeframe. Revenue from these
         customers totaled approximately $45 million for fiscal 2002 and is
         currently expected to total approximately $28 million for fiscal
         2003. In connection with the reduction in work from these
         customers, SM&P made reductions in the required levels of
         personnel, facilities and equipment. Management continues to
         estimate that the total cost of these reductions will result in an
         after-tax charge of approximately $1 million, all of which was
         expensed during the quarter ended March 31, 2003.

12.)     Laclede Gas is subject to various environmental laws and
         regulations that, to date, have not materially affected the
         Company's financial position and results of operations. As these
         laws, regulations, and their interpretation evolve, however,
         additional costs may be incurred.

         With regard to a former manufactured gas plant site located in
         Shrewsbury, Missouri, Laclede Gas and state and federal
         environmental regulators have agreed upon certain actions and those
         actions are nearing completion. Laclede Gas currently estimates the
         overall costs of these actions will be approximately $2.3 million.
         As of June 30, 2003, Laclede Gas has paid or reserved for these
         actions. If regulators require additional actions or assert
         additional claims, Laclede Gas will incur additional costs.

         Laclede Gas enrolled a second former manufactured gas plant site
         into the Missouri Voluntary Cleanup Program (VCP). The VCP provides
         opportunities to minimize the scope and cost of site cleanup while
         maximizing possibilities for site development. This site is located
         in and is presently owned by the City of


                                     14

<PAGE>
<PAGE>

         St. Louis, Missouri. The City of St. Louis has separately
         authorized a developer to prepare both a Remedial Action Plan
         (RAP), for submission to the VCP, and a site development plan.
         Laclede Gas continues to explore with the developer what role, if
         any, it might play in these efforts. Laclede Gas continues to
         evaluate other options as well, including, but not limited to, the
         submission of its own RAP to the VCP. Laclede Gas currently
         estimates that the cost of site investigations, agency oversight
         and related legal and engineering consulting may be approximately
         $629,000. Currently, Laclede Gas has paid or reserved for these
         actions. Laclede has requested that other former site owners and
         operators share in these costs and one party has agreed to
         participate and has reimbursed Laclede Gas to date for $173,000.
         Laclede Gas anticipates additional reimbursement from this party.
         Laclede Gas plans to seek proportionate reimbursement of all costs
         relative to this site from other potentially responsible parties
         if practicable.

         Costs incurred are charged to expense or capitalized in accordance
         with generally accepted accounting principles. A predetermined
         level of expense is recovered through Laclede Gas' rates.

         Laclede Gas has been advised that a third former manufactured gas
         plant site previously operated but no longer owned by Laclede Gas
         may contain gas plant waste that may require remediation. Laclede
         Gas is working to determine the nature and extent of such waste, if
         any, and its responsibility, if any, for any remediation costs.

         While the scope of costs relative to the Shrewsbury site will not
         be significant, the scope of costs relative to the other sites is
         unknown and may be material. Laclede Gas has notified its insurers
         that it seeks reimbursement of its costs at these three
         manufactured gas plant sites. In response, the majority of insurers
         have reserved their rights. While some of the insurers have denied
         coverage, Laclede Gas continues to seek reimbursement from them.
         With regard to the Shrewsbury site, denials of coverage are not
         expected to have any material impact on the financial position and
         results of operations of Laclede Gas. With regard to the other two
         sites, since the scope of costs are unknown and may be significant,
         denials of coverage may have a material impact on the financial
         position and results of operations of Laclede Gas. Such costs, if
         incurred, have typically been subject to recovery in rates.

13.)     On June 28, 2002, the Staff of the MoPSC filed its recommendation
         in a proceeding established to review Laclede Gas' gas costs for
         fiscal 2001. In its recommendation, the Staff proposed to disallow
         approximately $4.9 million in pre-tax gains achieved by Laclede
         Gas in its incentive-based Price Stabilization Program. This
         Program was discontinued at the end of the 2001-2002 heating
         season. Laclede Gas believes that Staff's position lacks merit and
         has vigorously opposed the adjustment in proceedings before the
         MoPSC, including a formal hearing that was held on this matter in
         February 2003. Nevertheless, on April 29, 2003, the MoPSC decided
         by a 3-2 vote to disallow the $4.9 million in pre-tax gains
         achieved by Laclede Gas, and directed Laclede Gas to flow through
         such amount to its ratepayers in its November 2003 PGA filing. On
         June 19, 2003, Laclede Gas appealed the MoPSC's decision to the
         Cole County Circuit Court. Laclede Gas continues to believe in the
         merit of its position and intends to vigorously pursue its appeal.
         To the extent that a final decision in the Courts sustains the
         Commission's disallowance, the proceeding's outcome could have a
         material effect on the future financial position and results of
         operations of Laclede Gas.

14.)     In June 2001, the Financial Accounting Standards Board (FASB) issued
         SFAS No. 141, "Business Combinations," which requires all business
         combinations in the scope of this Statement to be accounted for
         using the purchase method. The provisions of this Statement apply
         to all business combinations initiated after June 30, 2001. The
         FASB also issued SFAS No. 142, "Goodwill and Other Intangible
         Assets", which addresses how acquired goodwill and other
         intangible assets that are acquired individually or with a group
         of other assets should be accounted for in financial statements
         upon acquisition and after they have been initially recognized in
         the financial statements. The Company adopted the provisions of
         SFAS No. 141 with the acquisition of SM&P. As required by SFAS No.
         141, the goodwill for SM&P is being accounted for consistent with
         the provisions of SFAS No. 142. The complete adoption of SFAS Nos.
         141 and 142 on October 1, 2002 did not have a material effect on
         the financial position and results of operations of Laclede Group.

         The FASB issued SFAS No. 143, "Accounting for Asset Retirement
         Obligations", which addresses financial accounting and reporting
         for obligations associated with the retirement of tangible
         long-lived assets and associated asset retirement costs. It applies
         to legal obligations associated with the retirement of long-lived
         assets that result from acquisition, construction, development
         and/or the normal operation of a long-lived asset, except for certain
         obligations of lessees. The provisions of the Statement provide for
         rate-regulated entities that meet the criteria for application of
         SFAS No. 71, such as Laclede Gas, to recognize regulatory

                                     15

<PAGE>
<PAGE>

         assets or liabilities for differences in the timing of recognition
         of the period costs associated with asset retirement obligations
         for financial reporting pursuant to this Statement and rate-making
         purposes. The adoption of this Statement on October 1, 2002 did
         not affect the financial position and results of operations of
         Laclede Group. There are legal obligations related to final
         abandonment of the Utility's gas distribution system. However,
         these obligations related to mass property and other distribution
         system assets generally continue in perpetuity and can not be
         measured under SFAS No. 143 because of indeterminate settlement
         dates and cash flow estimates.

         SFAS No. 148, "Accounting for Stock-Based Compensation - Transition
         and Disclosure", provides alternative methods for a voluntary
         change to the fair value based method of accounting for stock-based
         compensation. In addition, this statement requires prominent
         disclosures in both annual and interim financial statements about
         the method of accounting for stock-based employee compensation and
         the method used on reported results. The disclosure provisions are
         effective for financial reports containing condensed financial
         statements for interim periods beginning after December 15, 2002.
         The required disclosures are included in Note 9, page 11.

         SFAS No. 149, "Amendment of Statement 133 on Derivative Instruments
         and Hedging Activities", amends and clarifies financial accounting
         and reporting for derivative instruments, including certain
         derivative instruments embedded in other contracts, and for hedging
         activities under SFAS No. 133. This Statement is effective for
         contracts entered into or modified after June 30, 2003, with
         certain exceptions, and for all hedging relationships designated
         after June 30, 2003. Laclede Group does not expect a material
         effect on its financial position and results of operations.

         SFAS No. 150, "Accounting for Certain Financial Instruments with
         Characteristics of both Liabilities and Equity", establishes
         standards for how an issuer classifies and measures certain
         financial instruments with characteristics of both liabilities and
         equity. It requires that an issuer classify a financial instrument
         that is within its scope as a liability (or an asset in some
         circumstances). Many of those instruments were previously
         classified as equity. This statement is effective for financial
         instruments entered into or modified after May 31, 2003, and
         otherwise is effective at the beginning of the first interim period
         beginning after June 15, 2003. The Company is currently reviewing
         the classification of its obligated mandatorily redeemable
         preferred securities of subsidiary trust and redeemable preferred
         stock on the Consolidated Balance Sheets. These items are currently
         classified between equity and liabilities. Laclede Group does not
         expect any material effect on its financial position and results of
         operations.

         FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure
         Requirements for Guarantees, Including Indirect Guarantees of
         Indebtedness of Others", requires an entity to recognize, at the
         inception of a guarantee, a liability for the fair value of the
         obligation undertaken in issuing the guarantee. This requirement is
         to be applied on a prospective basis to guarantees issued or
         modified after December 31, 2002. This Interpretation also requires
         disclosures in interim and annual financial statements about
         obligations under certain guarantees that the entity has issued.
         These disclosure requirements are effective for financial
         statements of interim or annual periods ending after December 15,
         2002. The required disclosures are included in Note 15, page 17.

         FASB Interpretation No. 46, "Consolidation of Variable Interest
         Entities", addresses consolidation of business enterprises of
         variable interest entities. This Interpretation applies immediately
         to variable interest entities created after January 31, 2003, and
         to variable interest entities in which an enterprise obtains an
         interest after that date. It applies in the first fiscal year or
         interim period beginning after June 15, 2003, to variable interest
         entities in which an enterprise holds a variable interest acquired
         before February 1, 2003. The Company is currently evaluating the
         effect of this pronouncement on the consolidation of its obligated
         mandatorily redeemable preferred securities of subsidiary trust,
         but does not expect a material effect on the financial position and
         results of operations of Laclede Group.


                                     16

<PAGE>
<PAGE>


15.)     SM&P has several operating leases, the aggregate annual cost of
         which is approximately $5 million, consisting primarily of 12-month
         operating leases, with renewal options, for vehicles used in its
         business. Upon acquisition of SM&P, Laclede Group assumed parental
         guarantees of certain of those vehicle leases. Laclede Group
         anticipates that the maximum guarantees will not exceed $8 million.

         Laclede Group had guarantees outstanding of $5.0 million for
         performance and payment of certain wholesale gas supply purchases
         by Laclede Energy Resources, Inc. (its non-regulated marketing
         affiliate), as of June 30, 2003. Laclede Group issued an additional
         $1.0 million guarantee of performance commencing in July 2003.




         Laclede Gas Company's Consolidated Financial Statements and Notes
         to Consolidated Financial Statements are included in Exhibit 99.1.



                                     17

<PAGE>
<PAGE>


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

THE LACLEDE GROUP, INC.
-----------------------

This management's discussion analyzes the financial condition and results of
operations of The Laclede Group, Inc. (Laclede Group or the Company) and its
subsidiaries. It includes management's view of factors that affect its
business, explanations of past financial results including changes in
earnings and costs from the prior year, and their effects on overall
financial condition and liquidity.

Certain matters discussed in this report, excluding historical information,
include forward-looking statements. Certain words, such as "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "seek," and similar words
and expressions identify forward-looking statements that involve
uncertainties and risks. Future developments may not be in accordance with
our expectations or beliefs and the effect of future developments may not be
those anticipated. Among the factors that may cause results to differ
materially from those contemplated in any forward-looking statement are:

o   weather conditions and catastrophic events;
o   economic, competitive, political and regulatory conditions;
o   legislative, regulatory and judicial mandates and decisions, some of which
    may be retroactive, including those affecting
    o   allowed rates of return
    o   incentive regulation
    o   industry and rate structures
    o   purchased gas adjustment provisions
    o   franchise renewals
    o   environmental or safety matters;
    o   taxes;
    o   accounting standards;
o   the results of litigation;
o   retention, ability to attract, ability to collect from and conservation
    efforts of customers;
o   capital and energy commodity market conditions including the ability to
    obtain funds for necessary capital expenditures and the terms and conditions
    imposed for obtaining sufficient gas supply; and
o   employee workforce issues.

Readers are urged to consider the risks, uncertainties and other factors
that could affect our business as described in this report. All
forward-looking statements made in this report rely upon the safe harbor
protections provided under the Private Securities Litigation Reform Act of
1995. We do not, by including this statement, assume any obligation to
review or revise any particular forward-looking statement in light of future
events.

The Management's Discussion and Analysis of Financial Condition and Results
of Operations should be read in conjunction with the Company's Consolidated
Financial Statements and the combined notes thereto.


                                     18

<PAGE>
<PAGE>

THE LACLEDE GROUP, INC.

RESULTS OF OPERATIONS

Laclede Group's earnings are primarily derived from the regulated activities
of its largest subsidiary, Laclede Gas Company, Missouri's largest natural
gas distribution company. Those utility earnings are generated by the sale
of heating energy, which has historically been heavily influenced by the
weather. Due to the seasonal nature of the business of Laclede Gas, earnings
are typically concentrated in the November through April period, which
generally corresponds with the heating season. The Utility typically
experiences losses during the non-heating season. This seasonal effect on
Laclede Group was tempered somewhat by the impact of the weather mitigation
rate design implemented in November 2002, and the addition of SM&P Utility
Resources, Inc. (SM&P), a wholly owned subsidiary acquired January 28, 2002
whose operations tend to be counter-seasonal to those of Laclede Gas.


Quarter Ended June 30, 2003
---------------------------

Laclede Group's basic earnings per share were $.11 for the quarter ended
June 30, 2003 compared with a loss of $.05 per share for the quarter ended
June 30, 2002. The year-to-year improvement in consolidated results was
primarily due to lower seasonal losses experienced by the Utility and, to a
lesser extent, higher earnings reported by Laclede Energy Resources, Inc.
(LER). Temperatures in Laclede Gas' service area during the quarter were 11%
warmer than normal and 4% warmer than the same quarter last year. Seasonal
losses typically experienced by Laclede Gas were mitigated this year by the
implementation of a new rate design that lessens the impact of weather on
the Utility's earnings and recovers fixed costs more evenly during the
heating season. This resulting shift in the interim margin revenue pattern
resulted in higher margin revenue for the quarter ended June 30, 2003
compared with the same period last year. This effect of higher margin
revenue combined with a general rate increase effective November 9, 2002 and
higher income from capacity release at the Utility, was partially offset by
higher costs of doing business. These improved results were partially offset
by lower earnings reported by SM&P during the quarter ended June 30, 2003
compared with the same period last year.

Regulated operating revenues for the quarter ended June 30, 2003 were
$114.2 million, or $26.9 million more than the same period last year. The
increase was primarily attributable to higher Purchased Gas Adjustment (PGA)
Clause rates that are passed on to Utility customers (subject to prudence
review), and to a lesser extent, the effect of the general rate increase.
These factors were partially offset by lower off-system sales revenues.
System therms sold and transported were essentially the same as the quarter
ended June 30, 2002.

Laclede Group's non-regulated services operating revenues for this quarter
decreased $12.2 million primarily due to the loss of two customers by SM&P.
Non-regulated gas marketing operating revenues increased $22.1 million
primarily due to increased gas marketing sales by Laclede Energy Resources,
Inc. Other non-regulated operating revenues increased $2.5 million primarily
due to higher revenues recorded by Laclede Pipeline Company (LPC), a wholly
owned subsidiary that transports liquid propane.

Regulated operating expenses for the quarter ended June 30, 2003 increased
$21.6 million from the same quarter last year. Natural and propane gas
expense increased $18.7 million above last year's level primarily
attributable to higher rates charged by our suppliers, partially offset by
lower off-system gas expense. Other operation and maintenance expenses
increased $1.6 million, or 5.4%, primarily due to higher pension costs and
higher group insurance charges, partially offset by a lower provision for
uncollectible accounts and reduced distribution charges. Depreciation and
amortization expense decreased $.5 million primarily due to the effect of
negative amortization of a portion of the depreciation reserve effective
July 1, 2002, as authorized by the Missouri Public Service Commission
(MoPSC). This effect was partially offset by increased depreciable property.
Taxes, other than income, increased $1.8 million, or 18.5%, primarily due to
higher gross receipts taxes (reflecting the increased revenues).

All variations in non-regulated operating expenses are primarily associated
with changes in sales levels.

The $.3 million increase in interest charges is primarily due to the
issuance of trust preferred securities in December 2002, partially offset by
a reduction in short-term interest charges (reflecting reduced rates) and
lower interest on long-term debt due to the May 2003 maturity of $25 million
of 6 1/4% First Mortgage Bonds.

The increase in income taxes is primarily due to higher pre-tax income.

                                     19

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<PAGE>

Nine Months Ended June 30, 2003
-------------------------------

Laclede Group's basic earnings per share were $2.04 for the nine months
ended June 30, 2003 compared with $1.46 per share for the same period last
year. Earnings were primarily comprised of those of Laclede Gas, which were
favorably affected by higher gas sales arising from temperatures in its
service area that were colder than last year, the benefit of the general
rate increases put into effect by Laclede Gas on December 1, 2001 and
November 9, 2002 and higher income from off-system sales and capacity
release. Temperatures for the nine-month period ended June 30, 2003 were
1% colder than normal and 20% colder than the same period last year. These
benefits were partially offset by the effect of income recorded in the same
period last year produced by the Utility's Price Stabilization Program and
higher costs of doing business. The increased Utility earnings, coupled with
higher earnings reported by LER, were partially offset by losses recorded by
SM&P (acquired January 28, 2002) mainly reflecting the full
fiscal-year-to-date effect of seasonal losses this year and right-sizing
costs related to the loss of two customers (discussed below).

Regulated operating revenues for the nine months ended June 30, 2003 were
$688.8 million, or $161.5 million more than the same period last year. The
increase was primarily attributable to higher gas sales levels resulting
from colder weather, higher PGA rates that are passed on to Utility
customers (subject to prudence review), increased off-system and capacity
release revenues, and the general rate increases. System therms sold and
transported increased by 111.0 million therms, or 13.4%, above the nine
months ended June 30, 2002.

Laclede Group's non-regulated services operating revenues for this period
increased $20.7 million from those revenues for the same period last year
primarily attributable to the nine-month effect of revenues recorded this
year by SM&P (acquired January 28, 2002), partially offset by the loss of
revenue related to two customers. Non-regulated gas marketing revenues
increased $74.9 million primarily due to increased gas marketing sales by
Laclede Energy Resources, Inc. Other non-regulated operating revenues
increased $2.5 million primarily due to higher revenues recorded by Laclede
Pipeline Company.

Regulated operating expenses for the nine months ended June 30, 2003
increased $142.2 million from the same period last year. Natural and propane
gas expense increased $128.8 million above last year's level primarily
attributable to higher volumes purchased for sendout due to the colder
weather, higher rates charged by our suppliers and higher off system gas
expense. Other operation and maintenance expenses increased $8.3 million, or
8.9%, primarily due to increased pension costs, higher wage rates, higher
group insurance charges, increased insurance premiums, and a higher
provision for uncollectible accounts. These factors were partially offset by
reduced distribution charges. Depreciation and amortization expense
decreased $2.1 million primarily due to the effect of negative amortization
of a portion of the depreciation reserve effective July 1, 2002, as
authorized by the MoPSC. This effect was partially offset by increased
depreciable property. Taxes, other than income, increased $7.2 million, or
17.5%, primarily due to higher gross receipts taxes (reflecting the
increased revenues).

Laclede Group's non-regulated services operating expenses increased
$24.1 million for the nine months ended June 30, 2003 due to the nine-month
effect of operating expenses recorded this year by SM&P and right-sizing
costs expensed this year related to the aforementioned customer loss.
Non-regulated gas marketing operating expenses increased $71.6 million and
other non-regulated operating expenses increased $2.1 million mainly due to
higher expenses associated with increased sales levels.

The $.9 million increase in interest expense was primarily due to the
issuance of trust preferred securities in December 2002, partially offset by
a reduction in short-term interest charges (reflecting reduced rates) and
lower interest on long-term debt due to the May 2003 maturity of $25 million
of 6 1/4% First Mortgage Bonds.

The increase in income taxes is mainly due to higher pre-tax income.

In November 2002, two customers notified SM&P that, due to actions they have
taken to address workforce management issues, they did not intend to
continue to outsource certain functions, which include locating services
provided by SM&P, after February and March 2003. One of these customers
notified SM&P in January 2003 that it will continue to outsource a portion
of its locating services provided by SM&P beyond that timeframe. Revenue
from these customers totaled approximately $45 million for fiscal 2002 and
is currently expected to total approximately $28 million for fiscal 2003. In
connection with the reduction in work from these customers, SM&P made
reductions in the required levels of personnel, facilities and equipment.
Management continues to estimate that the total cost of these reductions
will result in an after-tax charge of approximately $1 million, all of which
was expensed during the quarter ended March 31, 2003.

                                     20

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<PAGE>

Regulatory Matters
------------------

Laclede Gas previously appealed the MoPSC's decision in its 1999 rate case
relative to the calculation of its depreciation rates. The Circuit Court
remanded the decision to the MoPSC based on inadequate findings of fact. The
MoPSC upheld its previous order and Laclede Gas appealed this second order
to the Circuit Court. In 2002, the Circuit Court ruled that the MoPSC's
second order was lawful and reasonable, and Laclede Gas appealed the Circuit
Court's decision to the Missouri Western District Court of Appeals. On
March 4, 2003 the Court of Appeals issued an opinion remanding the decision to
the MoPSC based on the MoPSC's failure to support and explain its decision with
adequate findings of fact. In May 2003, the Court of Appeals rejected the
MoPSC's request that the Court reconsider its opinion or transfer this
matter to the Missouri Supreme Court.

On May 31, 2002, the Staff of the Commission filed a Motion to Investigate
Laclede Gas Company's alleged transfer of its gas supply function to Laclede
Energy Services, Inc. (LES), a subsidiary of Laclede Group, and such
action's ramifications, including whether such alleged transfer required
Commission approval or was otherwise lawful. On June 10, 2002 Laclede Gas
responded, pointing out that it had not transferred its gas supply functions
to LES but had instead delegated five employees to LES with responsibility
for performing various gas supply administrative duties, many of which had
been performed in prior years by an outside party. Laclede Gas remained
primarily responsible for the gas supply function. Laclede Gas urged the
Commission to deny Staff's Motion on this and other grounds. The Commission
concluded that a case should be established to investigate the issues raised
by the Staff. The Commission also ordered the Staff to file a status report
regarding progress of the investigation and Laclede Gas to file any
responses to the Staff's status report. On March 28, 2003, Laclede Gas filed
a Motion with the Commission indicating that LES would be dissolved and that
in light of such action the parties had agreed that the investigation could
be terminated and the case closed. On April 14, 2003, LES ceased to exist as
a corporation. On April 22, 2003, the Commission ordered that the
investigation be dismissed and the case closed. The dissolution of LES had
no material effect on the financial position and results of operations of
Laclede Group.

On July 29, 2002, Laclede Gas filed a proposed Catch-Up/Keep-Up Program with
the MoPSC that would permit the Company to use a portion of the savings from
its negotiated pipeline discounts to fund a low-income energy assistance
program. Pursuant to, and among revisions to the Program filed by the
Utility on September 23, 2002, the amount of discount savings that could be
used for this purpose would be limited to $6 million per year. In response
to certain objections filed by the MoPSC Staff and Missouri Office of the
Public Counsel, the Commission suspended the tariffs implementing the
Program and scheduled a prehearing conference that occurred on October 23,
2002. On January 16, 2003, the Commission, by a 3 to 2 vote, issued an order
rejecting the proposed plan. On January 23, 2003, the Utility filed a Motion
for Reconsideration seeking to identify whether the Commission would approve
the Program at a reduced funding level of $3 million per year. On February
13, 2003 the Commission convened a hearing for oral argument. On March 6,
2003 the Commission denied the Company's Motion for Reconsideration.

On June 28, 2002, the Staff of the MoPSC filed its recommendation in a
proceeding established to review Laclede Gas' gas costs for fiscal 2001.
In its recommendation, the Staff proposed to disallow approximately
$4.9 million in pre-tax gains achieved by Laclede Gas in its incentive-based
Price Stabilization Program. This Program was discontinued at the end of the
2001-2002 heating season. Laclede Gas believes that Staff's position lacks
merit and has vigorously opposed the adjustment in proceedings before the
MoPSC, including a formal hearing that was held on this matter in February
2003. Nevertheless, on April 29, 2003, the MoPSC decided by a 3-2 vote to
disallow the $4.9 million in pre-tax gains achieved by Laclede Gas, and
directed Laclede Gas to flow through such amount to its ratepayers in its
November 2003 PGA filing. On June 19, 2003, Laclede Gas appealed the MoPSC's
decision to the Cole County Circuit Court. Laclede Gas continues to believe
in the merit of its position and intends to vigorously pursue its appeal. To
the extent that a final decision in the Courts sustains the Commission's
disallowance, the proceeding's outcome could have a material effect on the
future financial position and results of operations of Laclede Gas.

On July 10, 2003, a bill was signed into Missouri law that, among other
things, allows gas utilities to adjust their rates twice a year to recover
the depreciation, property taxes, and rate of return on facility-related
expenditures that are made to comply with state and federal safety
requirements or to relocate facilities in connection with public improvement
projects. This bill is expected to become effective late this summer. The
Utility does not expect any impact during fiscal year 2003 due to the new
law, and is currently evaluating the impact it may have on future periods.


                                     21

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Critical Accounting Policies
----------------------------

Our Discussion and Analysis of our financial condition, results of
operations, liquidity and capital resources is based upon our financial
statements, which have been prepared in accordance with accounting
principles generally accepted in the United States of America. Generally
accepted accounting principles require 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. We believe the following represent the more significant
items requiring the use of judgment and estimates in preparing our
consolidated financial statements:

         Allowances for doubtful accounts - Estimates of the collectibility
         of trade accounts receivable are based on historical trends, age of
         receivables, economic conditions, credit risk of specific
         customers, and other factors.

         Employee benefits and postretirement obligations - Pension and
         postretirement obligations are calculated by actuarial consultants
         that utilize several statistical factors and other assumptions
         related to future events, such as discount rates, returns on plan
         assets, compensation increases, and mortality rates. The amount of
         expense recognized by the Utility is dependent on the regulatory
         treatment provided for such costs. Certain liabilities related to
         group medical benefits and workers' compensation claims, portions
         of which are self-insured and/or contain stop/loss coverage with
         third-party insurers to limit exposure, are established based on
         historical trends.

         Goodwill valuation - In accordance with SFAS No. 142, "Goodwill and
         Other Intangible Assets", goodwill related to the acquisition of
         SM&P is required to be tested for impairment annually or whenever
         events or circumstances occur that may reduce the value of
         goodwill. In performing impairment tests, valuation techniques
         require the use of estimates with regard to discounted future cash
         flows of operations, involving judgments based on a broad range of
         information and historical results. If the test indicates
         impairment has occurred, goodwill would be reduced which would
         adversely impact earnings.

Laclede Gas accounts for its regulated operations in accordance with
Statement of Financial Accounting Standards (SFAS) No. 71, "Accounting for
the Effects of Certain Types of Regulation." This statement sets forth the
application of accounting principles generally accepted in the United States
of America for those companies whose rates are established by or are subject
to approval by an independent third-party regulator. The provisions of SFAS
No. 71 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. Also,
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 SFAS No. 71 and that all regulatory assets and liabilities are
recoverable or refundable through the regulatory process. We believe the
following represent the more significant items recorded through the
application of SFAS No. 71:

         The Utility's Purchased Gas Adjustment (PGA) Clause allows Laclede
         Gas to flow through to customers, subject to prudence review, the
         cost of purchased gas supplies, including the costs, cost
         reductions and related carrying costs associated with the Utility's
         use of natural gas financial instruments to hedge the purchase
         price of natural gas. The difference between actual costs incurred
         and costs recovered through the application of the PGA are recorded
         as regulatory assets and liabilities that are recovered or refunded
         in a subsequent period.

         The Company records deferred tax liabilities and assets measured by
         enacted tax rates for the net tax effect of all temporary
         differences between the carrying amounts of assets and liabilities
         for financial reporting purposes, and the amounts used for income
         tax purposes. Changes in enacted tax rates, if any, will be
         reflected by entries to regulatory asset or liability accounts for
         regulated companies, and will be reflected as income or loss for
         non-regulated companies. Also, pursuant to the direction of the
         MoPSC, Laclede Gas' provision for income tax expense for financial
         reporting purposes reflects an open-ended method of tax
         depreciation. This method is consistent with the regulatory
         treatment prescribed by the MoPSC to depreciate the Utility's
         assets.

                                     22

<PAGE>
<PAGE>

For further discussion of significant accounting policies, see the Notes to
the Consolidated Financial Statements included in the Company's 10-K for the
year ended September 30, 2002.


Accounting Pronouncements
-------------------------

In June 2001, the FASB issued SFAS No. 141, "Business Combinations," which
requires all business combinations in the scope of this Statement to be
accounted for using the purchase method. The provisions of this Statement
apply to all business combinations initiated after June 30, 2001. The FASB
also issued SFAS No. 142, "Goodwill and Other Intangible Assets," which
addresses how acquired goodwill and other intangible assets that are
acquired individually or with a group of other assets should be accounted
for in financial statements upon acquisition and after they have been
initially recognized in the financial statements. The Company had adopted
the provisions of SFAS No. 141 with the acquisition of SM&P. As required by
SFAS No. 141, the goodwill for SM&P is being accounted for consistent with
the provisions of SFAS No. 142. The complete adoption of SFAS Nos. 141 and
142 on October 1, 2002 did not have a material effect on the financial
position and results of operations of Laclede Group.

The FASB issued SFAS No. 143, "Accounting for Asset Retirement Obligations,"
which addresses financial accounting and reporting for obligations
associated with the retirement of tangible long-lived assets and associated
asset retirement costs. It applies to legal obligations associated with the
retirement of long-lived assets that result from acquisition, construction,
development and/or the normal operation of a long-lived asset, except for
certain obligations of lessees. The provisions of the Statement provide for
rate-regulated entities that meet the criteria for application of SFAS No.
71, such as Laclede Gas, to recognize regulatory assets or liabilities for
differences in the timing of recognition of the period costs associated with
asset retirement obligations for financial reporting pursuant to this
Statement and rate-making purposes. The adoption of this Statement on
October 1, 2002 did not affect the financial position and results of
operations of Laclede Group. There are legal obligations related to final
abandonment of the Utility's gas distribution system. However, these
obligations related to mass property and other distribution system assets
generally continue in perpetuity and can not be measured under SFAS No. 143
because of indeterminate settlement dates and cash flow estimates.

SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and
Disclosure", provides alternative methods for a voluntary change to the fair
value based method of accounting for stock-based compensation. In addition,
this statement requires prominent disclosures in both annual and interim
financial statements about the method of accounting for stock-based employee
compensation and the method used on reported results. The disclosure
provisions are effective for financial reports containing condensed
financial statements for interim periods beginning after December 15, 2002.
The required disclosures are included in Note 9, page 11.

SFAS No. 149, "Amendment of Statement 133 on Derivative Instruments and
Hedging Activities", amends and clarifies financial accounting and reporting
for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities under SFAS No. 133.
This Statement is effective for contracts entered into or modified after
June 30, 2003, with certain exceptions, and for all hedging relationships
designated after June 30, 2003. Laclede Group does not expect a material
effect on its financial position and results of operations.

SFAS No. 150, "Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity", establishes standards for
how an issuer classifies and measures certain financial instruments with
characteristics of both liabilities and equity. It requires that an issuer
classify a financial instrument that is within its scope as a liability (or
an asset in some circumstances). Many of those instruments were previously
classified as equity. This statement is effective for financial instruments
entered into or modified after May 31, 2003, and otherwise is effective at
the beginning of the first interim period beginning after June 15, 2003. The
Company is currently reviewing the classification of its obligated
mandatorily redeemable preferred securities of subsidiary trust and
redeemable preferred stock on the Consolidated Balance Sheets. These items
are currently classified between equity and liabilities. Laclede Group does
not expect any material effect on its financial position and results of
operations.

FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness
of Others", requires an entity to recognize, at the inception of a
guarantee, a liability for the fair value of the obligation undertaken in
issuing the guarantee. This requirement is to be applied on a prospective
basis to guarantees issued or modified after December 31, 2002. This
Interpretation also requires disclosures in interim and annual financial
statements about obligations under certain guarantees that the entity has

                                     23

<PAGE>
<PAGE>

issued. These disclosure requirements are effective for financial statements
of interim or annual periods ending after December 15, 2002. The required
disclosures are included in Note 15, page 17.

FASB Interpretation No. 46, "Consolidation of Variable Interest Entities",
addresses consolidation of business enterprises of variable interest
entities. This Interpretation applies immediately to variable interest
entities created after January 31, 2003, and to variable interest entities
in which an enterprise obtains an interest after that date. It applies in
the first fiscal year or interim period beginning after June 15, 2003, to
variable interest entities in which an enterprise holds a variable interest
acquired before February 1, 2003. The Company is currently evaluating the
effect of this pronouncement on the consolidation of its obligated
mandatorily redeemable preferred securities of subsidiary trust, but does
not expect a material effect on the financial position and results of
operations of Laclede Group.

Credit Ratings
--------------

As of June 30, 2003, credit ratings for outstanding securities for Laclede
Group and Laclede Gas issues were as follows:

Type of Facility                       S&P          Moody's         Fitch
---------------------------------------------------------------------------
Laclede Group Corporate Rating          A
Laclede Gas First Mortgage Bonds        A             A3              A+
Laclede Gas Commercial Paper           A-1            P-2
Trust Preferred Securities              A-           Baa3            BBB+

On May 5, 2003, Standard & Poor's (S&P) downgraded the long-term corporate
credit rating for Laclede Group and Laclede Gas' First Mortgage Bonds from
A+ to A. S&P cited bondholder protection parameters that have eroded due to
several successive warmer-than-normal winters and increasing debt leverage
as reasons for the downgrade. S&P ratings outlook is currently stable.

The Company's ratings remain investment grade, and the Company believes
that it will have adequate access to the markets to meet its capital
requirements. These ratings remain subject to review and change by the
rating agencies.


Liquidity and Capital Resources
-------------------------------

The Company's short-term borrowing requirements typically peak during colder
months when Laclede Gas borrows money to cover the gap between when it
purchases its natural gas and when its customers pay for that gas. These
short-term cash requirements have traditionally been met through the sale of
commercial paper supported by lines of credit with banks.

Laclede Gas currently has a primary line of credit in place of up to
$215 million, expiring September 15, 2003, and supplemental credit lines of
$15 million expiring January 31, 2004. During the quarter ending June 30, 2003,
Laclede Gas sold commercial paper aggregating to a maximum of $148.1 million
at any one time, but did not borrow from the banks under the aforementioned
agreements. At this writing, Laclede Gas has aggregate lines of credit
totaling $230 million. Short-term commercial paper borrowings outstanding at
June 30, 2003 were $128.9 million at a weighted average interest rate of
1.22%. Based on short-term borrowings at June 30, 2003, a change in interest
rates of 100 basis points would increase or decrease pre-tax earnings and
cash flows by approximately $1.3 million on an annual basis.

Most of Laclede Gas' lines of credit include a covenant limiting total debt,
including short-term debt, to no more than 70% of total capitalization. On
June 30, 2003, total debt was 59% of total capitalization.

Laclede Gas has filed a shelf registration on Form S-3. Of the $350 million
of securities originally registered under this S-3, $270 million of debt
securities remained registered and unissued as of June 30, 2003. The MoPSC
authorization for issuing securities registered on Form S-3 expires in
September 2003. On July 9, 2003, the Utility filed a request with the MoPSC
to extend their authorization through September 1, 2006. The amount, timing
and type of additional financing to be issued under this shelf registration
will depend on cash requirements and market conditions.

                                     24

<PAGE>
<PAGE>

Short-term cash requirements outside of Laclede Gas have been met with
internally-generated funds. However, Laclede Group has a $20 million working
capital line of credit obtained from U.S. Bank National Association,
expiring in June 2004, with interest rates indexed to LIBOR or Prime, to
meet short-term liquidity needs of its non-utility subsidiaries. In April
2003, the ratings triggers in this line of credit were replaced by a
covenant limiting the total debt of Laclede Gas Company to no more than 70%
of the utility's total capitalization (as noted above, this ratio stood at
59% on June 30, 2003.) While this line has not been drawn on to date, it may
be used for seasonal funding needs of the various subsidiaries from time to
time throughout the year or to provide letters of credit.

On December 16, 2002, Laclede Capital Trust I issued 1,800,000 trust
preferred securities at a par value of $25.00 each and a distribution rate
of 7.70%. These securities mature December 1, 2032, but may be redeemed at
Laclede's option on or after December 16, 2007. The proceeds of this
issuance were used to repay Laclede Group's short-term loan of $42.8 million
from U. S. Bank, which had funded the acquisition in January 2002 of SM&P
Utility Resources, Inc., and for other general corporate purposes. These
trust preferred securities were issued under Laclede Group's shelf
registration on Form S-3, which became effective May 6, 2002, and allows for
the issuance of equity securities, other than preferred stock, and debt
securities. Of the $500 million of securities originally registered under
this S-3, $408.6 million remain registered and unissued as of June 30, 2003.
The amount, timing and type of additional financing to be issued under this
shelf registration will depend on cash requirements and market conditions.

The Trust Preferred Securities are rated A- (stable outlook) by Standard &
Poor's Ratings Group (S&P), Baa3 (stable outlook) by Moody's Investors
Service, Inc. and BBB+ (negative outlook) by Fitch Ratings. These ratings
remain subject to review and change by the rating agencies.

On May 1, 2003, $25 million of 6 1/4% Series First Mortgage Bonds matured
and was funded with the sale of commercial paper.

SM&P has several operating leases, the aggregate annual cost of which is
approximately $5 million, consisting primarily of 12-month operating leases,
with renewal options, for vehicles used in its business. Upon acquisition of
SM&P, Laclede Group assumed parental guarantees of certain of those vehicle
leases. Laclede Group anticipates that the maximum guarantees will not
exceed $8 million.

Laclede Group had guarantees outstanding of $5.0 million for performance and
payment of certain wholesale gas supply purchases by Laclede Energy
Resources, Inc. (its non-regulated marketing affiliate), as of June 30,
2003. Laclede Group issued an additional $1.0 million guarantee of
performance commencing in July 2003.

Utility construction expenditures were $34.7 million for the nine months
ended June 30, 2003, compared with $33.9 million for the same period last
year. Non-utility construction expenditures were $1.1 million for the nine
months ended June 30, 2003, compared with $3.2 for the same period last
year.

Consolidated capitalization at June 30, 2003, excluding current obligations
of long-term debt, increased $67.8 million since September 30, 2002 and
consisted of 50.2% Laclede Group common stock equity, .2% Laclede Gas
preferred stock equity, 7.3% Laclede Capital Trust I preferred securities
and 42.3% Laclede Gas long-term debt. The proportion of preferred securities
in the consolidated capital structure increased with the December 16, 2002
issuance of trust preferred securities by Laclede Capital Trust I.

The seasonal nature of Laclede Gas' sales affects the comparison of certain
balance sheet items at June 30, 2003 and at September 30, 2002, such as
Accounts Receivable - Net, Gas Stored Underground, Notes Payable, Accounts
Payable, Regulatory Liabilities, and Advance and Delayed Customer Billings.


Market Risk
-----------

Laclede Gas adopted a risk management policy that provides for the purchase
of natural gas financial instruments with the goal of managing price risk
associated with purchasing natural gas on behalf of its customers. This
policy prohibits speculation. Costs and cost reductions, including carrying
costs, associated with the Utility's use of natural gas financial
instruments are allowed to be passed on to the Utility's customers through
the operation of its Purchased Gas Adjustment Clause, through which the
MoPSC allows the Utility to recover gas supply costs. Accordingly, Laclede
Gas does not expect any adverse earnings impact as a result of the use of
these financial instruments. At June 30, 2003, the Utility held
approximately 8.7 million MmBtu of futures contracts at an average price of
$5.94 per


                                     25

<PAGE>
<PAGE>

MmBtu. Additionally, approximately 23.4 million MmBtu of other price risk
mitigation was in place through the use of option-based strategies. These
positions have various expiration dates, the longest of which extends
through September 2004.

In the course of its business, Laclede Group's non-regulated marketing
affiliate, Laclede Energy Resources, Inc. (LER), enters into fixed price
commitments for the sale of natural gas to customers. LER manages the price
risk associated with these sales by either closely matching the purchases of
physical supplies at fixed prices or through the use of exchange-traded
futures contracts to lock in margins. At June 30, 2003, LER's open positions
were not material to Laclede Group's financial position or results of
operations.


Environmental Matters
---------------------

Laclede Gas is subject to various environmental laws and regulations that,
to date, have not materially affected the Company's financial position and
results of operations. As these laws, regulations, and their interpretation
evolve, however, additional costs may be incurred.

With regard to a former manufactured gas plant site located in Shrewsbury,
Missouri, Laclede Gas and state and federal environmental regulators have
agreed upon certain actions and those actions are nearing completion.
Laclede Gas currently estimates the overall costs of these actions will be
approximately $2.3 million. As of June 30, 2003, Laclede Gas has paid or
reserved for these actions. If regulators require additional actions or
assert additional claims, Laclede Gas will incur additional costs.

Laclede Gas enrolled a second former manufactured gas plant site into the
Missouri Voluntary Cleanup Program (VCP). The VCP provides opportunities to
minimize the scope and cost of site cleanup while maximizing possibilities
for site development. This site is located in and is presently owned by the
City of St. Louis, Missouri. The City of St. Louis has separately authorized
a developer to prepare both a Remedial Action Plan (RAP), for submission to
the VCP, and a site development plan. Laclede Gas continues to explore with
the developer what role, if any, it might play in these efforts. Laclede Gas
continues to evaluate other options as well, including, but not limited to,
the submission of its own RAP to the VCP. Laclede Gas currently estimates
that the cost of site investigations, agency oversight and related legal and
engineering consulting may be approximately $629,000. Currently, Laclede Gas
has paid or reserved for these actions. Laclede has requested that other
former site owners and operators share in these costs and one party has
agreed to participate and has reimbursed Laclede Gas to date for $173,000.
Laclede Gas anticipates additional reimbursement from this party. Laclede
Gas plans to seek proportionate reimbursement of all costs relative to this
site from other potentially responsible parties if practicable.

Costs incurred are charged to expense or capitalized in accordance with
generally accepted accounting principles. A predetermined level of expense
is recovered through Laclede Gas' rates.

Laclede Gas has been advised that a third former manufactured gas plant site
previously operated but no longer owned by Laclede Gas may contain gas plant
waste that may require remediation. Laclede Gas is working to determine the
nature and extent of such waste, if any, and its responsibility, if any, for
any remediation costs.

While the scope of costs relative to the Shrewsbury site will not be
significant, the scope of costs relative to the other sites is unknown and
may be material. Laclede Gas has notified its insurers that it seeks
reimbursement of its costs at these three manufactured gas plant sites. In
response, the majority of insurers have reserved their rights. While some of
the insurers have denied coverage, Laclede Gas continues to seek
reimbursement from them. With regard to the Shrewsbury site, denials of
coverage are not expected to have any material impact on the financial
position and results of operations of Laclede Gas. With regard to the other
two sites, since the scope of costs are unknown and may be significant,
denials of coverage may have a material impact on the financial position and
results of operations of Laclede Gas. Such costs, if incurred, have
typically been subject to recovery in rates.


Laclede Gas Company's Management Discussion and Analysis of Financial
Condition is included in Exhibit 99.1.

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<PAGE>


Item 3.  Quantitative and Qualitative Disclosures About Market Risk

For this discussion, see the "Market Risk" subsection in Management's
Discussion and Analysis of Financial Condition and Results of Operations,
page 25.


Item 4.  Controls and Procedures

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-14 and Rule 15d-14 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.

There have been no significant changes in our internal control over
financial reporting or in other factors which could, or could be reasonable
likely to, significantly affect internal control over financial reporting
subsequent to the date we carried out our evaluation.


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<PAGE>

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         For a description of environmental matters, see Note 12 to the
         Consolidated Financial Statements on page 14. For a description of
         pending regulatory matters of Laclede Gas, see Management's
         Discussion and Analysis of Financial Condition and Results of
         Operations, page 21.

         Laclede Group and its subsidiaries are involved in other
         litigation, claims and investigations arising in the normal course
         of business. While the results of such litigation cannot be
         predicted with certainty, management believes the final outcome
         will not have a material adverse effect on the consolidated
         financial position and results of operations.


Item 6.  Exhibits and Reports on Form 8-K

(a) See Exhibit Index

(b) Reports on Form 8-K


During the quarter, Laclede Group had two reports on Form 8-K:

1.       Form 8-K dated April 24, 2003 furnishing under Items 9 and 12 the
         Company's earnings press release.

2.       Form 8-K dated May 2, 2003 furnishing under Item 9 the Company's
         press release regarding appeal of Missouri Public Service
         Commission's decision.


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<PAGE>



                                 Signatures

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

                                             The Laclede Group, Inc.





                                             By: /s/ Barry C. Cooper
                                                ----------------------------
Dated: July 24, 2003                            Barry C. Cooper
       -------------                            Chief Financial Officer
                                                (Authorized Signatory and
                                                Chief Financial Officer)


                                     29

<PAGE>
<PAGE>


                                 Signatures

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

                                             Laclede Gas Company





                                             By: /s/ Barry C. Cooper
                                                ----------------------------
Dated: July 24, 2003                            Barry C. Cooper
       -------------                            Chief Financial Officer
                                                (Authorized Signatory and
                                                Chief Financial Officer)



                                     30

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<PAGE>


                              INDEX TO EXHIBITS
                              -----------------

Exhibit
  No.
-------

10.1   -   Amendments to Employees Retirement Plan of Laclede Gas Company as
           adopted by the Board of Directors on April 24, 2003.

10.2   -   Amendments to Employees Retirement Plan of Laclede Gas Company as
           adopted by delegation on July 2, 2003.

10.3   -   Amendments to Laclede Gas Company Salary Deferral Savings Plan
           adopted by delegation on July 2, 2003.

10.4   -   April 16, 2003 First Amendment to Revolving Credit Agreement
           between The Laclede Group, Inc. and U. S. Bank.

10.5   -   June 12, 2003 Second Amendment to Revolving Credit Agreement
           between The Laclede Group, Inc. and U. S. Bank.

99.1   -   Laclede Gas Company - Management's Discussion and Analysis of
           Financial Condition and Results of Operations, Financial Statements
           and Notes to Financial Statements.

99.2   -   Section 302 certifications for The Laclede Group, Inc. for Douglas
           H. Yaeger and Barry C. Cooper.

99.3   -   Section 906 certificates for The Laclede Group, Inc. for Douglas
           H. Yaeger and Barry C. Cooper.

99.4   -   Section 302 certifications for Laclede Gas Company for Douglas H.
           Yaeger and Barry C. Cooper.

99.5   -   Section 906 certificates for Laclede Gas Company for Douglas H.
           Yaeger and Barry C. Cooper.



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