Rgc Resources Inc. · NASDAQ:RGCO

Rgc Resources — Investor Presentation (May 2017)

15 slides from Rgc Resources's investor presentation, May 19, 2017

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

    RGC Resources, Inc. | NASDAQ: RGCO Investor Presentation May 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 302% since 2007, compared with 98% for the S&P 500  Announced record earnings LTM earnings for Q2’17, attributable to:  Improved utility margins associated with infrastructure replac

  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  Publically listed on Nasdaq in 1994  98% earnings from Roanoke Gas – regulated

  5. Slide 5: Natural gas is an increasingly attractive fuel source

    4 Natural gas is an increasingly attractive fuel source A tt ra ct ive ec o n o m ic b ac kdr o p  After decades of decline, new reserve discoveries in the past 10 years and technological advances have made the U.S. a global powerhouse in natural gas production  Natural gas enjoys a significant st

  6. Slide 6: Utility cost recovery and return on rate base

    5 Utility cost recovery and return on rate base St ab le b u si n es s m o de l  Utility base rates recover operating costs and investment in fixed assets, allowing the utility to earn a reasonable rate of return on equity  Infrastructure riders – Steps to Advance Virginia’s Energy (SAVE)  A mech

  7. Slide 7: Stable regulation environment for gas utility segment

    $17.9 $20.3 $18.7 $18.0 $18.4 $16.9 $0 $5 $10 $15 $20 $25 2016A 2017E 2018E 2019E 2020E 2021E $ mill io n s Utility Maintenance Customer Growth SAVE Rider & Station Replacement Advanced Metering 6 Stable regulation environment for gas utility segment  Established, productive relationships with VA S

  8. Slide 8: RGC's service area is enjoying an uptick in economic growth

    7 RGC’s service area is enjoying an uptick in economic growth Focus on innovation: Virginia Tech and Carilion to build research hub in Roanoke The Roanoke Times – 3.19.16 UPS announces plans to deploy new CNG vehicles in 15 cities, including Roanoke, VA UPS Pressroom – 4.1.15 Ballast Point closes on

  9. Slide 9: Mountain Valley Pipeline (MVP) – project overview & timeline

    8 Mountain Valley Pipeline (MVP) – project overview & timeline  RGCO is a 1% owner of the $3.5bn MVP  300 miles of 42” underground natural gas open-access pipeline spanning from northwestern West Virginia to southern Virginia  MVP expected to provide up to two billion cubic feet (2Bcf) of natural

  10. Slide 10: MVP – benefits to Roanoke Gas

    $18 $20 $19 $18 $18 $17 $2 $5 $25 $4 $19 $25 $44 $22 $18 $17 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2016A 2017E 2018E 2019E 2020E 2021E ($ m m ) Roanoke Gas CapEx Mountain Valley Pipeline 9 MVP – benefits to Roanoke Gas  Provide a third source

  11. Slide 11: Financial highlights

    $12,739 $14,313 $15,143 $21,180 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2014 2015 2016 2017 19.6x 19.6x 19.1x 28.4x 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 2014 2015 2016 2017Current 10 Financial highlights EPS Trailing P/E ROE Plant growth Sources: Bloomberg, SNL. Company filings. Notes: Stock pr

  12. Slide 12: Comparable company benchmarking

    11 Comparable company benchmarking Fi n an ci al pr o fi le Current dividend yield Sources: Bloomberg. Company filings. Notes: Current dividend yield as of 5/10/17. EPS CAGR calculated using TTM EPS as of 3/31/2015 – 3/31/2017. Forward P/E calculated using share price as of 5/10/17 and Bloomberg con

  13. Slide 13: Comparable company benchmarking: leverage and maturity profile

    12 Comparable company benchmarking Fi n an ci al pr o fi le Total debt / TTM EBITDA Debt / 3-31-17 book capital RGCO maturity profile Sources: Bloomberg, SNL. Company filings. Notes: Balance sheet data as of 3/31/17. TTM EBITDA as of 3/31/17. - 10,000 20,000 30,000 40,000 $ 0 0 0 2.6x 2.8x 2.8x 4.3x

  14. Slide 14: RGC Resources has delivered significant shareholder value

    $0.40 $0.45 $0.50 $0.55 $0.60 $0.65 $7.00 $9.00 $11.00 $13.00 $15.00 $17.00 $19.00 $21.00 $23.00 D ivi d en d s p er s h ar e ($ ) Sh ar e p ri ce ( $ ) Share price Dividends/share 13 RGC Resources has delivered significant shareholder value Demo n st ra ted t ra ck r ec o rd Source: Bloomberg data

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