Rgc Resources Inc. · NASDAQ:RGCO

Rgc Resources — Shareholder Meeting (January 2020)

22 slides from Rgc Resources's shareholder meeting presentation, Jan 31, 2020

  1. Slide 1: 2020 Annual Meeting February 3, 2020

    2020 Annual Meeting February 3, 2020

  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 uncer

  3. Slide 3: Agenda

    Agenda  Key Financial Highlights  Key Operational Highlights  Growth Strategy & Outlook 2

  4. Slide 4: Key Financial Highlights

    Key Financial Highlights 76 years dividend payments 16 years dividend increases 5 years record earnings 6.1% dividend increase annual dividend $0.70 (per share) Updated through market close, January 24, 2020. 2012 special dividend of $0.67 excluded from graph, but included in total returns when pres

  5. Slide 5: Earnings Per Share

    Earnings Per Share $1.15 $1.05 $1.08 Fiscal Year ended $0.95 September 30: $0.95 $0.85 $0.86 $0.81 2019 2018 $0.75 Basic: $1.08 $0.95 Diluted: $1.08 $0.95 $0.65 $0.66 $0.62 $0.55 $0.58 $0.54 $0.45 2016 2017 2018 2019 Dividends/Share 4

  6. Slide 6: Roanoke Gas CapEx

    Roanoke Gas CapEx Fiscal Year ended September 30: ($000’s) $24,000 $23,300 $22,000 $21,900 $20,800 $20,000 $18,000 $17,900 $16,000 $14,000 $12,000 $10,000 2016 2017 2018 2019 5

  7. Slide 7: Renewed 8.5 miles pre-1973 first-generation plastic in Fiscal 2019

    Renewed 8.5 miles pre-1973, first- generation plastic in Fiscal 2019 6

  8. Slide 8: SAVE Plan 2020

    SAVE Plan 2020 • Pre-1973 plastic main • Services • Gate Stations 7

  9. Slide 9: Tank-painting Project

    Tank-painting Project 8

  10. Slide 10: New Boilers Project

    New Boilers Project 9

  11. Slide 11: Natural Gas Powered Back-up Generator

    Natural Gas Powered Back-up Generator 10

  12. Slide 12: Pipeline work in-route to Elliston MVP Interconnect

    Pipeline work in-route to Elliston MVP Interconnect 11

  13. Slide 13: Elliston, VA Site for future Gate Station

    Elliston, VA Site for future Gate Station 12

  14. Slide 14: Regulated Utility Growth: Customers

    Regulated Utility Growth: Customers 2% growth since 2016 Average Customers (Fiscal year ended September 30) 61,500 61,000 60,500 60,000 59,500 59,000 2016 2017 2018 2019 New customer additions: Fiscal 2019 668 Fiscal 2018 597 Fiscal 2017 631 Fiscal 2016 495 13

  15. Slide 15: Rate Case

    Rate Case  Filed October 2018  Tax reform and SAVE CapEx  Non-SAVE CapEx  Final Order January 24, 2020  $7.25 million annual increase  9.44% ROE  SCC validates MVP investments 14

  16. Slide 16: Growth Strategy & Outlook

    Growth Strategy & Outlook  Regulated Utility Investment  CapEx  Ongoing Regulated Utility Growth  Customer Growth  Volumes Delivered  Non-Utility Investments  MVP  MVP Southgate  Strategic Opportunities 15

  17. Slide 17: Outlook: Roanoke Gas Capital Budget

    Outlook: Roanoke Gas Capital Budget $25 $21.9 $21.5 $21.0 $20.0 $20.0 $20 $18.0 $15 Millions $10 $5 $0 2019A 2020E 2021E 2022E 2023E 2024E Forecast totals through 2023: SAVE Infrastructure Replacement $42.4 Customer Growth & System Expansion $33.9 Utility Maintenance $24.2 Total $100.5 16

  18. Slide 18: Economic Development

    Economic Development Pratt Industries will invest $20+ million to finish and expand a shell building in Botetourt Center at Greenfield. Will employ 50 at an average wage of $47,900 plus benefits. Roanoke Regional Partnership – 2.26.2019 Metalsa Structural Products, Inc., an automotive solutions prov

  19. Slide 19: Update: RGC Midstream CapEx

    Update RGC Midstream CapEx  Project 90% complete $30 $20  $55 million cash investment ($mm) $10 $21 $17 $17  Target COD late 2020 $0 Thru 2018A 2019A 2020E Fiscal Year Workers for the Mountain Valley Pipeline weld together sections of pipe near Lindside, WV. (Jenny Harnish/The Register-Herald) 18

  20. Slide 20: Southgate

    Southgate  70 mile natural gas pipeline system  24 and 16 inch steel underground pipe  Starts at TRANSCO 165 and extends into central NC  Anchored by firm capacity commitment from PSNC Energy Schedule  FERC approval pending  Application filed Nov 2018  Target 2020: Begin Construction  Target

  21. Slide 21: EPS Guidance

    EPS Guidance Fiscal Year ended: $1.35 $1.30 $1.32 $1.25 $1.28 $1.20 $1.15 $1.10 $1.05 $1.24 $1.18 $1.00 $1.08 $0.95 $0.90 $0.95 $0.85 2018A 2019A 2020 2021 EPS Range 20

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