RGC Resources Inc. · NASDAQ:RGCO

RGC Resources — Janney Gas & Electric Utilities Conference 2022

22 slides from RGC Resources's conference presentation, January 2022

  1. Slide 1: Gas & Electric Utilities Conference

    Janney Gas & Electric Utilities Conference January 2022

  2. 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 Securities Litigation Reform Act of 1995 that involve risks and uncert

  3. Slide 3: Agenda

    Agenda  Company Overview  Financial Profile  Growth Strategy  Outlook 2

  4. Slide 4: Organizational Structure

    Organizational Structure NASDAQ: RGCO C-Corp formed 1998 Regulated Non-Utility  Local Distribution Company  Partner in Mountain Valley Pipeline (LDC), located in Roanoke, VA (MVP)  Founded in 1883  Partner in proposed MVP Southgate project 3

  5. Slide 5: Roanoke Gas Service Territory

    Roanoke Gas Service Territory  Serve over 62,600 natural gas customers  Customer Count breakdown:  Residential 90%  C&I 10%  Volume breakdown:  Residential 40%  C&I 60% Note: Total customers and volume breakdown per most recent fiscal year end. 4

  6. Slide 6: Roanoke Gas

    Roanoke Gas Regulated Utility  VA State Corporation Commission (SCC)  9.44% authorized ROE Highly Stable  Alternative Cost Recovery Mechanisms Business Model  Weather Normalization  Revenue Sharing  Infrastructure Riders  SAVE infrastructure replacement rider approved through 2024 5

  7. Slide 7: Equity and Debt Profile

    Equity and Debt Profile Equity:  Top shareholders:  $190M Market Capitalization  T. Rowe Price 7%  Common shares issued and  Vanguard 5% outstanding: 8,386,188  Anita G. Zucker 5%  Russell Investments 4%  $37M availability on equity shelf  6% insider ownership  $12M at the market (ATM) Deb

  8. Slide 8: Shareholder Return

    Shareholder Return 78 years dividend payments 18 years dividend increases 5.4% dividend increase $0.78 2022 annual dividend(per share) Note: Graph includes stock prices through December 31, 2021. 7

  9. Slide 9: Growth Strategy

    Growth Strategy  Regulated Utility Investment  CapEx  Ongoing Regulated Utility Growth  Customer Growth  Volumes Delivered  Non-Utility Investments  MVP  MVP Southgate 8

  10. Slide 10: Roanoke Gas CapEx

    Roanoke Gas CapEx Fiscal year ended September 30: ($000’s) $24,000 $23,300 $22,900 $22,000 $21,900 $20,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 2018 2019 2020 2021 9

  11. 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 customer additions: Fiscal 2021 600 Fiscal 2020 550 Fiscal 2019 670 Fiscal 2018 600 10

  12. Slide 12: Natural Gas Volumes

    Natural Gas Volumes Volumes Delivered (DTH) 4,500 Fiscal 2020 Fiscal 2021 4,000 3,500 Thousands 3,000 2,500 2,000 1,500 1,000 500 - Residential Commercial Industrial 2021 vs 2020 Total Volumes (4%) Residential 4% Commercial and Industrial (9%) 11

  13. Slide 13: Earnings Per Share

    Earnings Per Share Fiscal year: $1.35 $1.25 $1.30 $1.22 Fiscal year ended $1.15 September 30: $1.05 $1.08 $0.95 $0.95 2021 2020 $0.85 Basic: $1.22 $1.30 $0.75 Diluted: $1.22 $1.30 $0.74 $0.65 $0.70 $0.66 $0.55 $0.62 $0.45 2018 2019 2020 2021 Dividends/Share 12

  14. Slide 14: Return on Equity

    Return on Equity Fiscal year ended September 30: 12.0% 11.0% 12.3% 10.0% 10.7% 10.7% 10.5% 9.0% 8.0% 2018 2019 2020 2021 13

  15. Slide 15: Outlook

    Outlook  ESG  Strategic Opportunities  Economic Development 14

  16. Slide 16: Environmental Social Governance

    Environmental Social  System Modernization  Employees  Emissions Reductions  Community Engagement  Reduced Carbon Footprint  Safety  Customer Partnerships  Economic Development Governance  Diverse Board of Directors  Compliance and Risk Management  Diversified Shareholder Ownership  Ince

  17. Slide 17: Strategic Opportunities

    Strategic Opportunities  Midstream  CapEx  System Expansion 16

  18. Slide 18: MVP Project over 90% complete

    MVPMVP Investment Investment (cumulative) MVP Estimated  Project over 90% complete In-service $65.0 $12.0  Target summer 2022 2021 $51.3 2020 $45.3 Southgate  75 mile MVP extension 2019 $37.6  Target spring 2023 $- $20 $40 $60 $80 ($mm) Cash Investment AFUDC Workers for the Mountain Valley Pipel

  19. Slide 19: Roanoke Gas Capital Budget

    Roanoke Gas Capital Budget $30 $25.4 $25 $20.0 $20.0 $20.0 $20 $18.0 $18.0 Millions $15 $10 $5 $0 2021A 2022E 2023E 2024E 2025E 2026E Forecast totals through 2025: SAVE Infrastructure Replacement $34.8 Customer Growth & System Expansion $34.1 Utility Maintenance $32.5 Total $101.4 18

  20. Slide 20: Roanoke Gas System Expansion

    Roanoke Gas System Expansion Blue Ridge Expansion  Phases I and II complete  Phase III  $0.7 million  7,800 feet Customer Growth  7 main extension miles FY21 19

  21. Slide 21: EPS Analysis

    EPS Analysis $1.40 $1.30 $1.30 $1.22 $1.22 $1.20 $0.29 $1.10 $1.08 $1.00 $0.15 $0.95 $1.21 $1.18 $0.05 $0.90 $1.01 $0.80 $0.90 $0.93 $0.70 2018 2019 2020 2021 2022 Actual Actual Actual Actual Forecast EPS (net Midstream) Midstream EPS Range 20

  22. Slide 22: CSOUrCES

    GO CSOUrCES (C ——

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