Rgc Resources Inc. · NASDAQ:RGCO

Rgc Resources — Q2 2018 Earnings Presentation

14 slides from Rgc Resources's earnings presentation, May 4, 2018

  1. Slide 1: Second Quarter 2018 Earnings Conference Call

    Second Quarter 2018 Earnings conference call John S. D’Orazio, CEO Paul W. Nester, CFO

  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  Key Operational and Financial Highlights  2018 Outlook  Questions 3

  4. Slide 4: Key Highlights

    Key Highlights  Earnings per Share (EPS):  Six-months ended March 31: 2018 2017 Basic: $0.76 $0.76 Diluted: $0.75 $0.76  Pre-Tax Reform, six-months ended March 31: Basic: $0.78  Successful Equity Offering 4

  5. Slide 5: Roanoke Gas Q2 Capital Expenditures

    5 SAVE Rider $2.4 Customer Growth & System Expansion $1.3 Other Capital $1.3 2017 2018 $0.5 $1.5 $2.5 $3.5 $4.5 $5.5 $6.5 $7.5 Total Capital Expenditures Mi lli o n s $2.0 million, or 29% decrease in capital spending Roanoke Gas Q2 Capital Expenditures

  6. Slide 6: Roanoke Gas YTD Capital Expenditures

    6 SAVE Rider $5.0 Customer Growth & System Expansion $2.9 Other Capital $2.5 2017 2018 $0.5 $2.5 $4.5 $6.5 $8.5 $10.5 $12.5 Total Capital Expenditures Mi lli o n s $1.5 million, or 13% decrease in capital spending Roanoke Gas YTD Capital Expenditures

  7. Slide 7: Customer Growth

    Customer Growth 58,600 58,800 59,000 59,200 59,400 59,600 59,800 60,000 60,200 60,400 60,600 2015 2016 2017 2018 Average Customers (twelve-months ended March 31)  Consistent customer growth year over year since 2015  155 new customers in the second fiscal quarter  360 total new customers in the s

  8. Slide 8: Q2 Volume Growth

    - 500 1,000 1,500 2,000 2,500 Residential Commercial Industrial Th o u san d s Volumes Sold (DTH) Q2 2017 Q2 2018 2018 vs 2017 Residential 31% C&I 15% Q2 Volume Growth 8

  9. Slide 9: YTD Volume Growth

    - 500 1,000 1,500 2,000 2,500 3,000 3,500 Residential Commercial Industrial Th o u san d s Volumes Sold (DTH) YTD 2017 YTD 2018 2018 vs 2017 Commercial 20% Industrial 3% Top 10 Customers 9% YTD Volume Growth 9

  10. Slide 10: MVP Southgate Project Update

    10  RGC Midstream investment $35 million  FERC approved and construction in progress  Targeted in-service date end of calendar year 2018  MVP Southgate Project Update $5 $25 $5 $0 $10 $20 $30 2017A 2018E 2019E ($ m m ) RGC Midstream CapEx

  11. Slide 11: MVP Southgate Proposed Schedule

    11  70 mile natural gas pipeline system  20 and 16 inch steel underground pipe  Starts at TRANSCO 165 and extends into central NC  Anchored by firm capacity commitment from PSNC Energy  Same project partners as MVP Southgate Proposed Schedule  Ongoing: Public Participation  May 2018: FERC Pre

  12. Slide 12: Consolidated Financial Results

    Consolidated Financial Results 12

  13. Slide 13: 2018 Outlook

    13  Capital Spend  MVP Investment  Earnings 2018 Outlook 45% 41% 14% Roanoke Gas Fiscal 2018 CapEx Plan SAVE Rider & Station Replacement $10.0 Customer Growth & System Expansion 9.0 Utility Maintenance 3.0 Total $22.0

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