Rgc Resources Inc. · NASDAQ:RGCO

Rgc Resources — Investor Presentation (December 2017)

14 slides from Rgc Resources's investor presentation, Dec 7, 2017

  1. Slide 1: RGC Resources, Inc. Investor Presentation December 2017

    RGC Resources, Inc. | NASDAQ: RGCO Investor Presentation December 2017

  2. Slide 2: Forward-Looking Statements

    1 Forward-Looking Statements: The statements in this presentation by RGC Resources, Inc. (the "company") 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 unc

  3. Slide 3: Key Investment Highlights

    2 Key Investment Highlights Demonstrated Track Record of Delivering Shareholder Value  Total shareholder return of 317% since 2007, compared with 125% for the S&P 500  Recently announced $0.62 per share annual dividend, a 6.9% increase over 2017’s level  7% increase in earnings for the 12 month p

  4. Slide 4: Overview of RGC Resources and Roanoke Gas

    Overview of RGC Resources and Roanoke Gas Business Description  Local distribution company (LDC) located in Roanoke, VA, founded in 1883, that transports natural gas to residential and commercial/industrial end users  Publicly listed on Nasdaq in 1994  98% earnings FYE 2017 from Roanoke Gas– regu

  5. Slide 5: Stable Regulation Environment for Gas Utility Segment

    $20.7 $20.3 $18.0 $18.4 $18.9 $18.4 $0 $5 $10 $15 $20 $25 2017A 2018E 2019E 2020E 2021E 2022E $ mi llio n s Utility Maintenance Customer Growth SAVE Rider & Station Replacement Infrastructure riders Weather normalization Purchased gas adjustment System expansion 4 Stable Regulation Environment for G

  6. Slide 6: RGC's Service Area is Enjoying an Uptick in Economic Growth

    5 RGC’s Service Area is Enjoying an Uptick in Economic Growth Home to over 300,000 people and an economic hub for more than one million people throughout western Virginia Ranked in the Top 100 Best Places for Business and Careers and Top 15 Most Affordable Places for Doing Business by Forbes.com 

  7. Slide 7: Mountain Valley Pipeline (MVP) – Project Overview & Timeline

    6 Mountain Valley Pipeline (MVP) – Project Overview & Timeline  RGCO is a 1% owner of the planned $3.5bn MVP  300 mile, 42” underground natural gas pipeline spanning from northwestern West Virginia to southern Virginia  Will provide two billion cubic feet (2Bcf) of natural gas per day to New York

  8. Slide 8: Franklin County Expansion

    7 Franklin County Expansion Estimated $4.8mm annual EBITDA contribution from the MVP and Franklin County Expansion Note: Roanoke Gas is in the process of completing its application for the Certificate of Public Convenience and Necessity with the Virginia SCC for exclusive natural gas distribution ri

  9. Slide 9: Financial Highlights

    8 Financial Highlights Diluted EPS Customer Growth ROE Net Plant Growth ($000’s) Sources: Bloomberg, SNL. Company filings. Notes: Income statement data is TTM as of 9/30. Net plant growth = sum of last four quarters capex on utility plant without allowance for funds used during construction (AFUDC).

  10. Slide 10: Comparable Company Benchmarking

    11.0% 10.8% 9.6% 9.7% 7.7% 3.5% 0.0% 5.0% 10.0% 15.0% NJR RGCO UTL CPK NWN SJI 6.6% 6.5% 6.4% 5.8% 1.4% 0.5% 0.0% 2.0% 4.0% 6.0% 8.0% NJR RGCO CPK SJI UTL NWN 9.1% 2.3% (1.2%) (1.2%) (3.0%) (6.7%) (10.0%) (5.0%) 0.0% 5.0% 10.0% RGCO UTL NWN NJR CPK SJI 9 Comparable Company Benchmarking 3 Year Gross

  11. Slide 11: Comparable Company Benchmarking: Leverage and Maturity Profile

    47.3% 47.9% 49.1% 50.5% 53.6% 60.4% 0.0% 20.0% 40.0% 60.0% 80.0% CPK NWN SJI RGCO NJR UTL 3.2x 3.4x 3.5x 4.0x 5.2x 6.0x 0.0x 2.0x 4.0x 6.0x 8.0x CPK RGCO NWN UTL NJR SJI 0 10,000 20,000 30,000 $ 0 0 0 10 Comparable Company Benchmarking Total Debt / TTM EBITDA Debt / Book Capital RGCO Maturity Profil

  12. Slide 12: RGC Resources has Delivered Significant Shareholder Value

    $0.40 $0.45 $0.50 $0.55 $0.60 $0.65 $0.70 $7.00 $9.00 $11.00 $13.00 $15.00 $17.00 $19.00 $21.00 $23.00 $25.00 $27.00 $29.00 $31.00 D ivi d en d s p er s h ar e ($ ) Sh are p rice ($ ) Share price Dividends/share 11 RGC Resources has Delivered Significant Shareholder Value Source: Bloomberg data as o

  13. Slide 13: EBITDA Reconciliation

    12 EBITDA Reconciliation EBITDA represents net income (loss) before interest expense, provision for income taxes, depreciation and amortization. EBITDA does not represent net income, as that term is defined under GAAP, and should not be considered as an alternative to net income (loss) as an indicat

  14. Slide 14: 13

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