Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — Investor Presentation (September 2024)
39 slides from Rgc Resources's investor presentation, Sep 16, 2024
Slide 1: Investor Update
Investor Update September 16, 2024 _ Roanoke, Virginia
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘The statements in this presentation by RGC Resources, Inc. (the "Compary”) that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform ‘Act of 1995 that involve risks and unce
Slide 3: Safety Moment
Safety Moment = Meter should be visible = Use a broom to gently clear snow = Don’t shovel snow onto meter =|f your meter is completely encased in ice, or if you think i there is a potential problem » with the piping or equipment, call Roanoke Gas
Slide 4: Agenda
Agenda = Operational and Financial Highlights = RGC Midstream = Roanoke Gas = Outlook =" Questions
Slide 5: Slide 5
Slide 6: Mountain Valley Pipeline
Mountain Valley Pipeline =In service June 14 = Two Roanoke Gas interconnects on-line = System stability = Capacity improves region’s attractiveness } for existing and new employers
Slide 7: Lafayette Gate
Lafayette Gate
Slide 8: Franklin County
Franklin County =Summit View Business Park = Stik-Pak = Near Residential =™ Rocky Mount
Slide 9: Summit View Gate
Summit View Gate
Slide 10: Rocky Mount
Rocky Mount
Slide 11: MVP by the Numbers
MVP by the Numbers pas tay Cash Cost $3.5B = $8.0B Completion / : December 2018 June 2024 In Service Investment $ / Rane §35M/1% = $58M* / 0.73% * RGC recorded 80% impairment in 2022,
Slide 12: MVP Operational Accounting
MVP Operational Accounting = Record 0.73% of MVP’s results = Amortize basis difference between underlying ownership and our investment RGC Midstream — Annual Impact (in mittions) MVP Operating Results S$ 2.0 Amortization 12 Total Equity in Earnings $3.2 = Cash distributions approximate equity in ear
Slide 13: RGC Midstream Debt
RGC Midstream Debt June 30, 2024 (in millions) Revolver? (SOFR + 1.75% due Dec. 31, 2025) S 24.115 ReVOIVEr” (sore +2.215% due May 2,2026) 9.000 NOt swapped rate 3.24% due June 12, 2026) 14.000 NO te? (awooped cate 2.483% /S0FR +1.26448% due Jan 1, 2028) 6.400 Total $ 53515) » Maximum borrowing $25
Slide 14: Next for MVP
Next for MVP = Expansion = Additional compression = Increase capacity by 0.5B Dth/day to 2.5B Dth/day = Increased capacity at higher projected rates = Southgate = New pipeline from Station 165 into North Carolina = 550M Dth/day proposed capacity = Indesign / permitting phase = RGC Midstream contribu
Slide 15: Q&A
Q&A
Slide 16: Roanoke Gas
Roanoke Gas
Slide 17: Roanoke Gas Top Customers
Roanoke Gas Top Customers Building Materials Manufacturing ae $> Stee! onaies: 7 YOKOHAMA Mv General Shale (aimeo) (| V BO] -)Metalsa Health di 4) jealthcare —(_ DYNAX =lAtec va @ 4< Leviscale TAF Medical Center Transportation Higher Education Municipal WEA _groanoxe ROANOKE COUNTY VA
Slide 18: Customer Growth
Customer Growth 64,000 63,000 62,000 61,000 60,000 59,000 58,000 57,000 56,000 55,000 54,000
Slide 19: Volumes & Heating Degree Days
Volumes & Heating Degree Days 2 3,500 10 3,000 2,500 8 2,000 86 = 1,500 4 1,000 2 500 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F mmTotal Volumes (Oth) —=0thper HOD
Slide 20: Capital Investment
Capital Investment $30 New five-year SAVE Low pressure, program approved cast iron and tr oz bare steel replacement sin complete * $0 SAVE mCap Ex
Slide 21: Rate Base
Rate Base $250 $200 CS = Fp Clea : $100 : | | | | | | zoo 2011 202 2013 wd 2015 wie 2017 ze 2018 2020 ON 29 2 me
Slide 22: System Growth
System Growth Blue Ridge and new housing Carilion, VTC, FBRI Medical Corridor Industrial and commercial Main miles: = 140 Services: = 6,000
Slide 23: Modernization
Modernization = 6 Gate stations = Automated Meter Reading LNG Plant Main miles: = 100 = Boil-off compressor = Two boilers Services: = 7,700 ’ = 1MW natural gas generator = Turbine controls = Tank repainted ee
Slide 24: Renewable Natural Gas
Renewable Natural Gas Co-located at WVWWA In service March 2023 Reducing emissions by 13,700 metric tons annually Generating RIN credits, shared with WVWWA
Slide 25: Human Capital
Human Capital Goals: v Strengthen safety culture v Develop opportunities yv Align rewards Operational = Hire and retain PD» Excellence = Organization wide development planning = Investing in technology and training infrastructure
Slide 26: Operations Training Center
Operations Training Center
Slide 27: Slide 27
Slide 28: Natural Gas: Going or Coming?
Natural Gas: Going or Coming? U.S. Natural Gas Total Consumption Trillion Cubic Feet = 2023 ast 32.5 Tet 20} as} 10 5 1350 19601970 1980 1980 2000 2010 2020 Source: US Energ)
Slide 29: Natural Gas: Record Consumption
Natural Gas: Record Consumption U.S. natural gas consumption set nine 3,000 Mt | monthly records and an annual record in 200 2023. = AN
Slide 30: Natural Gas: Consumers say "Yes"
Natural Gas: Consumers say “Yes” More than one consumer per minute connects to the natural gas system 650,000 new natural gas consumers in 2022
Slide 31: Natural Gas: Fueling Electricity
ral Gas: Fueling Electricity U.S. Natural Gas Demand for Electric Power, Year to Date through June 23 Billion Cubic Feet per Day 70062008 a 7
Slide 32: 2025 Drivers
2025 Drivers = Rate case outcome = Capital plan similar to 2024 = Expense management = Interest rates trending favorably = RGC Midstream contribution to EPS modest = Consistent dividend payout ratio
Slide 33: Regulatory Update
Regulatory Update Rate Case = $4.33M additional revenue (annual) began in July, subject to refund = Proposed 10.35% ROE, 59% equity ratio = 5-year depreciation study complete = Expect resolution in Q2 of fiscal 2025 Riders = RNG Rider — Final Order issued September 4 = SAVE Rider — Expect Final Orde
Slide 34: 2025 Capital Forecast
2025 Capital Forecast SAVE & Renewals $ 9.7 Utility Upgrades 3.7 Customer Growth & 5.5 System Expansion MVP Growth 2.8 Total $21.7
Slide 35: Earnings Per Share
Earnings Per Share $1.30 $1.24 au) 1.18 $1.16 $1.14 $1.12 $1.06 $1.12 $1.00 2023 Actual 2024 Forecast 2025 Preliminary Guidance mEPS Range
Slide 36: Stock Price and Dividends Per Share
Stock Price and Dividends Per Share $33.00 $31.00 -_ $29.00 a + $0.75 g $23.00 ; ne $21.00 : Geisco \ a $17.00 $0,608 $15.00 i $13.00 _ $11.00 } $0.50 9. — Share Price — Dividend share ss Puisenes/ stare) $0.45 $0.40 FPP LPS LESS PIP SLPS Data through August 30, 2024
Slide 37: Why Buy RGCO?
Why Buy RGCO? Pil MTAS total shareholder return of 236% since 2009 Record of Delivering (Reus ucur snus Shareholder Value lend payments * 20+ years of consecutive dividend increases Highly Stable * Consistent regulatory environment = * Prospective cost recovery mechanisms Business Model Private shel
Slide 38: CA =
CA =
Slide 39: Appendix: Consolidated Financial Results
Appendix Consolidated Financial Results For the periods ended June 30, (Presented in thousands, except per shore dato) Three Months Ended Year to Date 2024 | 2023 204 | 2023 Operating revenues $ 14,458 $ 13,660]$ 71,537 $84,972 Operating expenses 12,901 11,862 54,698 68,038 come 1,557 1,738 16,839 1
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