Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — Janney Gas & Electric Utilities Conference 2022
22 slides from Rgc Resources's conference presentation, Jan 12, 2022
Slide 1: Janney Gas & Electric Utilities Conference January 2022
Janney Gas & Electric Utilities Conference 77 oS: January 2022 ae 1
Slide 2: Forward-Looking Statements
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 Securi gation Reform Act of 1995 that involve risks and uncertainties.
Slide 3: Agenda
Agenda OQ Company Overview Q Financial Profile QO Growth Strategy O Outlook
Slide 4: Organizational Structure
Organizational Structure =F GO G CSOULCES NASDAQ: RGCO C-Corp formed 1998 Regulated Non-Utility Roanoke Gas QO) Local Distribution Company Partner in Mountain Valley Pipeline (LDC), located in Roanoke, VA (MvP) QO Founded in 1883 QO Partner in proposed MVP Southgate project
Slide 5: Roanoke Gas Service Territory
Roanoke Gas Service Territory Serve over 62,600 natural gas customers QO) Customer Count breakdown: > Residential 90% > C&l 10% O) Volume breakdown: we > Residential 40% Py > C&l 60% Tennessee ©: centre
Slide 6: Roanoke Gas
Roanoke Gas UO VA State Corporation Commission (SCC) >» 9.44% authorized ROE UO Alternative Cost Recovery Mechanisms >» Weather Normalization » Revenue Sharing » Infrastructure Riders = SAVE infrastructure replacement rider approved through 2024 — —_
Slide 7: Data and Debt Profile
ata and Debt Profile Top shareholders: $190M Market Capitalization _ T. Rowe Price 7% OQ) Common shares issued and » Vanguard 5% outstanding: 8,386,188 > Anita G. Zucker 5% % eeecell investen e QO) $37Mavailability on equity shelf 6% insider ownership > $12Mat the market (ATM) C1 Remaining $110M on
Slide 8: Shareholder Return
Shareholder Return $33.00 $31.00 $29.00 $27.00 $25.00 A $23.00 5 $21.00 % $19.00 5 $17.00 $15.00 $13.00 $11.00 $9.00 $7.00 78 years dividend payments 18 years dividend increases 5 4% dividend increase } SO a 78 2022 annual dividend (pershare) — Share Price ml ‘a i \ —Dividends/ share 2 = a a 2 ad ra
Slide 9: Growth Strategy
Growth Strategy L) Regulated Utility Investment > CapEx L) Ongoing Regulated Utility Growth > Customer Growth > Volumes Delivered UL) Non-Utility Investments > MVP >» MVP Southgate ii —_
Slide 10: Roanoke Gas CapEx
Roanoke Gas CapEx Fiscal year ended September 30: ($000’s)
Slide 11: Customers
Customers 3% growth since 2018 Average Customers (Fiscal year ended September 30) 63,000 62,000 61,000 60,000 59,000 2018 2019 2020 2021 New aistomer additions: Fiscal 021 @0 Fiscal 020 50 Fiscal 019 670 Fipgel| 202 Gao Roanoke Gas —_ 10
Slide 12: Natural Gas Volumes
Natural Gas Volumes Volumes Deiivered (DTH) 4,500 @Fiscal 2020 i Fiscal 2021 4,000 S 3,500 = § 3,000 8 2,500 2 © 2,000 1,500 1,000 500 Residential Commercial Industrial 2021 w 2020 Total Volumes 4%) Residential % Vial Gmmercial ad hdustrial 0%) —
Slide 13: Earnings Per Share
Earnings Per Share $1.35 Fiscal year: $1.25 Fisal year ended $115 September 30 $1.05 $0.95 2021 2020 $0.85 Basic: $1.22 $1.30 Diluted: $1.22 $1.30 $0.75 $0.65 $0.55 $0.45 ¢ Dividends/Share
Slide 14: Return on Equity
Return on Equity Fiscal year ended September 30:
Slide 15: Outlook
Outlook Q ESG Q Strategic Opportunities QO Economic Development
Slide 16: Environmental Social Governance
Environmental Social v System Modernization v Employees Y Emissions Reductions v Community Engagement v Reduced Carbon Footprint v. Safety ¥ Customer Partnerships = “Economic Development Governance a Diverse Board of Directors & Compliance and Risk Management Y Diversified Shareholder Ownership ¥ In
Slide 17: Strategic Opportunities
Strategic Opportunities L} Midstream L) CapEx LI System Expansion
Slide 18: Pipeline
PIPELINE 7" Mountain Valley Estimated In-service 2021 2020 7 (175 mile MVP extension 2019 O Target spring 2023 s- $20 ES $60 $80 4 Cash Investment M AFUDC eequitrans Exeaeve, (GconEdison Midstream ENERGY Z% Genny
Slide 19: Roanoke Gas Capital Budget
Roanoke Gas Capital Budget $30 5 $25.4 $25 | $20.0 $20.0 $20.0 if $18.0 $18.0 a : : : . . $o 2021A 2022E 2023E 2024 2025E 2026E Forecast totals through 202% SAVE Infrastructure Replacement $348 Customer Growth & System Eyansion $341 Utility Maintenance $32.5 ye btal $101.4 18
Slide 20: Roanoke Gas System Expansion
Roanoke Gas System Expansion Phases | nd I omplete Phase Il $0.7 nillion 7,800 feet Gistomer Growth | 7 main extension miles FY21
Slide 21: EPS Analysis
EPS Analysis $1.40 $1.30 $1.30 $1.22 $1.22 $1.20 $0.29] $1.10 SUL $1.00 $0.55 $0.1 aa $1.21) $0.90 $1.01) $0.80 $0.90 $0.93 $0.70 2018 2019 2020 2021 2022 Actual Actual Actual Actual ‘Forecast Vial GEPS (net Midstream) ®MidstreamEPS Range 20
Slide 22: C
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