Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — 2023 AGA Financial Forum
29 slides from Rgc Resources's conference presentation, May 22, 2023
Slide 1: 2023 AGA Financial Forum
2023 AGA Financial Forum May 2023
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
Slide 3: Agenda
Agenda Oococovoo Company Overview Key Highlights Growth Strategy 2023 Update Financial Highlights Outlook
Slide 4: Organizational Structure
Organizational Structure — a CSOUICES NASDAQ: RGCO Regulated Non-Utility A GE. Roanoke Gas Co em Q.Local Distribution Company (LDC), O Partner in Mountain Valley Pipeline located in Roanoke, VA (Mvp) O Founded in 1883 Partner in proposed MVP Southgate
Slide 5: Roanoke Gas Service Territory
Roanoke Gas Service Territory Q Serve over 63,217 natural gas customers QO Customer Count breakdown: y Residential 91% r C&l 9% 2 Q Volume breakdown: é > Residential 35% S Wy Tennessee
Slide 6: Roanoke Gas Top Customers
Roanoke Gas Top Customers Building Materials Manufacturing ZTVTAN a” s> Stee! Dynamics” > YOKOHAMA General Shale ( g x) Metalsa Healthcare L/S =lAttec. VA @ ist, 4 tome, Higher Education Fleet = al Len ROANOKE ups ROANOKE me UN
Slide 7: Roanoke Gas
Roanoke Gas Regulated ity OQ) VA State Corporation Commission (SCC) O 9.44% authorized ROE Highly Stable O Alternative Cost Recovery Mechanisms » Weather Normalization » Revenue Sharing » Purchase Gas Adjustment (quarterly) » Infrastructure Riders = SAVE = RNG Business Model er
Slide 8: Rate Case
Rate Case UO Annual base rate increase of $8.55 million, effective January 1, 2023: > Audit in progress > Rate year Capex ($22 million) included in rate base > Expected resolution late fiscal 2023 SAVE: Non-Gas Base: \ $4.05 million $4.5 million
Slide 9: SAVE Rider
SAVE Rider UO) Proposed plan filed March 31: > Rate effective October 1, 2023 (FY 2024) > Investment: $41.0M 2025-2028
Slide 10: Roanoke Gas RNG Facility
Roanoke Gas RNG Facility ¥ Customer Billing . March 2023 v In-service
Slide 11: Growth Strategy
Growth Strategy QO Regulated Utility Investment > CapEx OU) Ongoing Regulated Utility Growth >» Volumes Delivered >» Customer Growth O Sustainable Investments > RNG
Slide 12: CapEx History
CapEx History $255 $23.3 s219 eae $20.0 ros ; 2019 oa aa von MRNG mCustomerGrowth mUtility Maintenance _m Save & Renewals 5 year cumulative totals: SAVE Infrastructure Replacement $48.3 Customer Growth & System Expansion $40.7 Utility Maintenance $20.1 RNG $4.5 Total $113.6
Slide 13: Regulated Utility Growth: Customers
Regulated Utility Growth: Customers Average Customers {twelve-months ended March 31) 63,000 62,500 62,000 61,500 61,000 60,500 60,000 59,500 2019 2020 2021 2022 2023 C Six Months Ended March 31, 2023: > 2.7 miles new main pa » 336 new customers
Slide 14: YTD Gas Volumes
YTD Gas Volumes DTHs Delivered Q2 2023 mQ2 2022 Residential Commercial Industrial 2023 vs 2022 Total Volumes (2%) Commercial & Industrial Volumes (2%) pa Heating Degree Days (2%) —_
Slide 15: Net Income by Year
Net Income by Year $15 $10 : [ [. I. [ | "$0 2018 2019 2020 2021 a3)5 10 Midstream loss, including $42.2 million impairment Roanoke Gas Midstream
Slide 16: Consolidated Underlying Financial Results
Consolidated Underlying Financial Results For the periods ended March 31, (Presented in thousands, except per share data) [ Second Quarter Twelve Months Ended _| [2023 [2022 2023 | —2022,—=«Y|: Consolidated Net Income (Loss) $ 6,342 $ (24,494) (1,224) $ (20,299) Non-cash Impairment, Net 29,572 11,34
Slide 17: Shareholder Return: Dividend
Shareholder Return: Dividend $0.95 90.0% Q 317 consecutive TTM March 31, quarterly soe dividends * 70.0% $0.85 ae 6 Q Dividend increase 567% $7 19 consecutive F 50.0% 10.75, years _ 300% $0.65 ee 10.0% $0.55 0.0% 2020 2021 2022 2023 mm Annual Dividend/Share —Payout Ratio * Based on underlying earnin
Slide 18: Equity and Debt Profile
Equity and Debt Profile Equity: Top shareholders: Q $180M Market Capitalization > Anita G. Zucker 14% Common shares issued and outstanding: > T.Rowe Price 8% 9,942,005 > Vanguard 4% C2 $40M availability on equity shelf 5.3% insider ownership > Atthe market (ATM) 2 Remaining $120M on private shelf fa
Slide 19: MVP
MVP Roanoke Gas Growth and Capital EPS
Slide 20: Environmental
Environmental ¥ System Modernization v Employees ¥ Emissions Reductions Y Community Engagement Y Reduced Carbon Footprint v) Safety Y Customer Partnerships ~ difecoromis OSslonttent Governance ¥ Diverse Board of Directors. ¥ Compliance and Risk Management Y Diversified Shareholder Ownership Incentiv
Slide 21: MVP Permits
MVP Permits v FWS Biological Opinion (Feb 28, 2023) v USFS Record of Decision (May 15, 2023) ¥ BLM Right of Way (May 18, 2023) Pending ° WV 401 ¢ USACE Water Crossings
Slide 22: MVP In-service
MVP In-service December 2023 or Later 2024 Annual EBITDA to RGC Midstream: ~$4.0M
Slide 23: CapEx Forecast
CapEx Forecast 25 $23.6 $23.1 $21.8 $21.3 $10) aes 2005 2026 2027 RNG mCustomerGrowth mUtility Maintenance ml Save & Renewals Forecast totals through 2027: SAVE Infrastructure Replacement $49.6 Customer Growth & System Expansion $28.0 Utility Maintenance $30.2 RNG $4.0 Total $111.8
Slide 24: Earnings Per Share 2023
Earnings Per Share 2023 $1.05 $1.01 $1.00 $0.95 $0.91 $0.90 Implied Dividend 7 Payout Ratio: $0.85 = $0.80 $0.87 (aaa 90.8% $0.75 $0.70 2022 Underlying 2023 Forecast ee mEPS Range
Slide 25: Earnings Per Share 2024
Earnings Per Share 2024 $1.45 $1.10 With MVP Income Without MVP Income @Range MEPS
Slide 26: Appendix
as
Slide 27: Appendix: Consolidated Financial Results
‘Appendix: Consolidated Financial Results For the periods ended March 31, (Presented in thousands, except per share data) [ Second Quarter Twelve Months Ended | (2023 [2022 2023 | 2022,—*«|: Operating revenues $ 38,030 $ 29,530]$ 102,684 $ 80,197 Operating expenses 28,438 22,086 85,454 65,278 9,592
Slide 28: Appendix: MVP Route (Interstate Map)
Slide 29: Interconnect into Roanoke Gas Distribution System
Interconnect into Roanoke Gas Distribution System ZF RBEKbriage: