Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — Q1 2025 Earnings Presentation
38 slides from Rgc Resources's earnings presentation, Feb 11, 2025
Slide 1: 2025 AGA Financial Forum
2025 AGA Financial Forum May 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements The statements in this presentation contain forward-looking statements that relate to future transactions, events or expectations. In addition, Resources may announce or publish forward-looking statements relating to such matters as anticipated financial performance, busin
Slide 3: Agenda
Agenda About RGC Highlights since May 2024 Roanoke Gas RGC Midstream Financials and Capital Why invest in RGC? 2
Slide 4: About RGC Resources, Inc.
About RGC Resources, Inc. Publicly traded (Nasdaq: RGCO) utility holding company providing energy and related products and services through Roanoke Gas Company and RGC Midstream. Roanoke Gas, which began in 1883, provides safe, reliable natural gas service to more than 63,000 customers in the greate
Slide 5: Organizational Structure
Organizational Structure Regulated Non-Utility Local Distribution Company (LDC), Partner in Mountain Valley Pipeline located in Roanoke, VA (MVP) ≈ 0.73% Founded in 1883 Partner in MVP Southgate - 0.51% 4
Slide 6: Highlights since May 2024
Highlights since May 2024 Rate case reviewed and approved $4.08M new revenue 9.90% ROE 59% Equity Stellar safety record and no system outages MVP went into service June 14, 2024 MVP cash flow to partners began October 2024 Providing gas to Franklin County, a first
Slide 7: Roanoke Gas
i Roanoke Gas
Slide 8: Roanoke Gas Service Territory
Roanoke Gas Service Territory Serve more than 63,700 natural gas customers Customer count breakdown: Residential 91% Roanoke Co. Bedford Co. Mont. Co. City C&I 9% Volume breakdown: Residential 33% Franklin Co. C&I 67% Note: Number of customers based on customer count at March 31, 2025.
Slide 9: Roanoke Gas
Roanoke Gas Regulated Utility In business since 1883 VA State Corporation Commission (SCC) 9.90% authorized ROE, with 59% equity Predictable, reliable, stable Alternative Cost Recovery Mechanisms revenues Weather Normalization Revenue Sharing Most recent rate Purchase Gas Adjustment (qua
Slide 10: Roanoke Gas RNG Facility
Roanoke Gas RNG Facility In service March 2023 Co-located at water authority site Generating RIN credits Rider 9
Slide 11: Roanoke Gas LNG Facility
Roanoke Gas LNG Facility Operating since 1972 Within our distribution system Provides up to 25,000 Dths / day Stability on coldest days 10
Slide 12: Roanoke Gas Top Customers
Roanoke Gas Top Customers Building Materials Manufacturing Healthcare Higher Education Transportation Municipal 11
Slide 13: Customer Growth
Customer Growth 64,000 63,000 62,000 61,000 60,000 59,000 58,000 57,000 56,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F 12
Slide 14: Volumes & Heating Degree Days
Volumes & Heating Degree Days 12 3,500 3,000 10 2,500 8 2,000 Millions 6 1,500 4 1,000 2 500 - - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F Total Volumes (Dth) Dth per HDD 13
Slide 15: YTD Gas Volumes
YTD Gas Volumes YTD 2025 YTD 2024 DTHs Delivered 3,500 3,000 Thousands 2,500 2,000 1,500 1,000 500 - Residential Commercial Industrial YTD 2025 vs YTD 2024 Total Volumes 18% Commercial & Industrial Volumes 22% Heating Degree Days 16% 14
Slide 16: RGC Midstream
GC CEE
Slide 17: RGC Midstream
RGC Midstream Investment in Mountain Valley Pipeline 2 Bcf / day 20-year shipper contracts began July 1, 2024 – interstate stable revenue pipeline Cash flow from MVP distributed to partners Marcellus / Utica quarterly Basin gas ≈ $3.4M to RGC Midstream in FY25 Interconnects Company uses equi
Slide 18: Mountain Valley Pipeline
Mountain Valley Pipeline Roanoke Gas Interconnects 17
Slide 19: Mountain Valley Pipeline
Mountain Valley Pipeline Two Roanoke Gas interconnects on-line System stability for Roanoke gas Capacity improves region’s attractiveness for existing and new employers 18
Slide 20: LaFayette Gate Station
LaFayette Gate Station 19
Slide 21: Summit View Gate
Summit View Gate 20
Slide 22: Financials and Capital
Financials and Capital
Slide 23: Net Income by Year
Net Income by Year $15 $10 $5 Millions $0 2020 2021 2022 2023 2024 -$5 -$10 Roanoke Gas Midstream Midstream loss, including $42.2 million impairment 22
Slide 24: Consolidated Financial Results
Consolidated Financial Results For the periods ended March 31, (Presented in thousands, except per share data) Three Months Ended Year to Date 2025 2024 2025 2024 Operating revenues $ 36,462 $ 32,660 $ 63,752 $ 57,079 Operating expenses 26,062 24,030 46,024 41,797 Operating income 10,400 8,630 17,72
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet As of March 31, (Presented in thousands) 2025 2024 Assets Current assets $ 25,778 $ 28,526 Utility property, net 267,560 254,140 Other non-current assets 33,083 30,694 Total Assets $ 326,421 $ 313,360 Liabilities and Stockholders' Equity Current maturities of long-term deb
Slide 26: CapEx History
CapEx History $25.5 $25.3 $27.0 $22.1 $24.0 $22.9 $21.0 $20.0 $18.0 $15.0 $12.0 $9.0 $6.0 $3.0 $- 2020 2021 2022 2023 2024 5-year cumulative totals: SAVE $ 50.9 Customer Growth & System Expansion 32.8 Utility Maintenance 20.3 RNG 8.6 MVP Growth 3.2 Total $ 115.8 25
Slide 27: Utility Plant Growth
Utility Plant Growth $300 $250 $200 Millions $150 $100 $50 $- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F 26
Slide 28: Equity and Debt Profile
Equity and Debt Profile Equity: Top shareholders: $230M Market Capitalization Anita G. Zucker 13% Common shares issued and outstanding: Gabelli Funds 7% Vanguard Group 4% 10,322,218 Blackrock 4% Columbia Threadneedle 4% $36.2M availability on equity shelf At the market (ATM) 6.
Slide 29: Why Invest in RGC?
Why Invest in RGC?
Slide 30: Outlook and Shareholder Return
Outlook and Shareholder Return Growth Cap Ex EPS -------------------- Dividends 29
Slide 31: Growth Strategy
Growth Strategy Regulated Utility Fully earning – monitoring inflation Continued investment in system infrastructure Other RNG opportunities Ongoing Regulated Utility Growth Franklin County expansion Volumes delivered Large industrial customer Hospital expansion Economic developm
Slide 32: Economic Development
Economic Development Regional Activity Broader Trends Data centers and energy MVP Medical 31
Slide 33: CapEx Forecast 2025-2029
CapEx Forecast 2025-2029 $25.0 $22.5 $22.7 $22.4 $21.8 $21.8 $20.0 $15.0 $10.0 $5.0 $- 2025 2026 2027 2028 2029 SAVE Customer Growth Utility Maintenance MVP Growth 5-year cumulative totals: SAVE (Authorized until 2028; 2029 would need approval) $47.8 Customer Growth & System Expansion $25.6 Utility
Slide 34: Earnings Per Share
Earnings Per Share $1.30 $1.27 Dividend $1.24 Payout Ratio: $1.18 65% $1.16 $1.12 $1.22 68% $1.06 $1.00 2024 Actual 2025 Forecast EPS Range 33
Slide 35: Earnings Per Share 2025
Earnings Per Share 2025 Third Quarter Fourth Quarter Roanoke Gas Roanoke Gas Rates higher than a year Rates equal ago AMA Revenue Sharing Asset management slightly lower agreement slightly lower Rate case projections RGC Midstream RGC Midstream AFUDC in Q3 last year P&L com
Slide 36: Shareholder Return: Dividends
Shareholder Return: Dividends $0.95 90.0% 325 consecutive TTM March 31, 80.0% quarterly dividends 76.2% $0.83 70.0% (more than 80 $0.85 68.5%* 70.2% 65.9% years) 56.7% $0.79 $0.80 60.0% $0.76 50.0% $0.75 $0.72 40.0% Annual dividend increase 21 30.0% consecutive years $0.65 20.0% 10.0% $0.55 0.0%
Slide 37: Why Buy RGCO?
Why Buy RGCO? Demonstrated Track • Total Shareholder return of 476% since 2010 Record of Delivering • 80+ years of consecutive dividend payments • 20+ years of consecutive dividend increases Shareholder Value Highly Stable • Consistent regulatory environment • Prospective cost recovery mechanisms Bu
Slide 38: Md
Md