RGC Resources Inc. · NASDAQ:RGCO
RGC Resources — Investor Presentation (December 2017)
14 slides from RGC Resources's investor presentation, December 2017
Slide 1: Investor Presentation December 2017
RGC Resources, Inc. | NASDAQ: RGCO Investor Presentation December 2017
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: Key Investment Highlights
Key Investment Highlights Total shareholder return of 317% since 2007, compared with 125% for the S&P 500 Recently announced $0.62 per share annual dividend, a 6.9% increase over 2017’s level Demonstrated Track 7% increase in earnings for the 12 month period ended Sept 30, 2017, attributable t
Slide 4: Overview of RGC Resources and Roanoke Gas
Overview of RGC Resources and Roanoke Gas Business Description Public Market Overview ($mm) Local distribution company (LDC) located in Roanoke, VA, ($mm, except where noted) 9/30/17 founded in 1883, that transports natural gas to residential Share price (as of 12/1/17) $26.87 Fully diluted shares
Slide 5: Stable Regulation Environment for Gas Utility Segment
Stable Regulation Environment for Gas Utility Segment Infrastructure riders Weather normalization Purchased gas adjustment System expansion Established, productive relationships with VA SCC Infrastructure Replacement Rider - SAVE 9.75% authorized ROE Approved through 2021 100% cast iron an
Slide 6: RGC's Service Area is Enjoying an Uptick in Economic Growth
RGC’s Service Area is Enjoying an Uptick in Economic Growth Home to over 300,000 people and an economic hub for more than one million people throughout western Virginia Ranked in the Top 100 Best Places for Business and Careers and Top 15 Most Affordable Places for Doing Business by Forbes.com
Slide 7: Mountain Valley Pipeline (MVP) – Project Overview & Timeline
Mountain Valley Pipeline (MVP) – Project Overview & Timeline MVP Overview RGCO is a 1% owner of the planned $3.5bn MVP 300 mile, 42” underground natural gas pipeline spanning from northwestern West Virginia to southern Virginia Will provide two billion cubic feet (2Bcf) of natural gas per day
Slide 8: Franklin County Expansion
Franklin County Expansion The Summit View Business Park is a 500 acre industrial park that is currently under development in Franklin County, along the proposed path of the Mountain Valley Pipeline RGC will build an interconnect and create a distribution system for the park and nearby town of Ro
Slide 9: Financial Highlights
Financial Highlights Diluted EPS Customer Growth $0.90 Dividends/Share $0.86 60,500 60,338 $0.81 $0.80 59,988 $0.72 60,000 $0.70 $0.67 59,536 59,500 $0.60 58,993 $0.58 59,000 $0.50 $0.54 $0.51 $0.49 $0.40 58,500 2014 2015 2016 2017 FY 2014 FY 2015 FY 2016 Current ROE Net Plant Growth ($000’s) 11.0%
Slide 10: Comparable Company Benchmarking
Comparable Company Benchmarking 3 Year Gross Dividend CAGR 8.0% 6.6% 6.5% 6.4% 5.8% 6.0% 4.0% 2.0% 1.4% 0.5% 0.0% NJR RGCO CPK SJI UTL NWN TTM 2015 – 2017 EPS CAGR (as of 9/30/17) 10.0% 9.1% 5.0% 2.3% 0.0% (5.0%) (1.2%) (1.2%) (3.0%) (10.0%) (6.7%) RGCO UTL NWN NJR CPK SJI TTM 9/30/17 ROE 15.0% 11.0
Slide 11: Comparable Company Benchmarking
Comparable Company Benchmarking Total Debt / TTM EBITDA 8.0x 6.0x 6.0x 5.2x 3.5x 4.0x 4.0x 3.2x 3.4x 2.0x 0.0x CPK RGCO NWN UTL NJR SJI Debt / Book Capital 80.0% 60.4% 60.0% 49.1% 50.5% 53.6% 47.3% 47.9% 40.0% 20.0% 0.0% CPK NWN SJI RGCO NJR UTL RGCO Maturity Profile Prudential note purchase agreeme
Slide 12: RGC Resources has Delivered Significant Shareholder Value
RGC Resources has Delivered Significant Shareholder Value $31.00 $0.70 $29.00 RGCO total returns 11/27/17: Announced $27.00 6mo 9% 6.9% dividend increase $0.65 1yr 67% $25.00 3yr 106% 5yr 169% $23.00 $0.60 Dividends per share ($) 10yr 317% 6/23/17: Added to Share price ($) $21.00 the Russell 3000 $1
Slide 13: EBITDA Reconciliation
EBITDA Reconciliation Reconciliation of Net Income to EBITDA - Audited Quarter ended LTM 9/30/17 6/30/17 3/31/17 12/31/16 Net income $6,232,865 $159,886 $615,562 $3,225,199 $2,232,218 Add: Provision for income taxes 3,805,390 112,210 343,233 1,977,583 1,372,364 Add: Interest expense 1,917,254 516,95
Slide 14: Md CSOUIrCES
CO. Md CSOUIrCES ——— ad
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