Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — Investor Presentation (September 2021)
24 slides from Rgc Resources's investor presentation, Sep 10, 2021
Slide 1: 2021 Investor Presentation
2021 Investor Presentation 7, September 2021
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 A oF 1255 ts ass ee tnd carasrciog. Tier r
Slide 3: Agenda
Agenda Q Company Overview O Financial Profile QO Growth Strategy QO Outlook
Slide 4: Organizational Structure
Organizational Structure NASDAQ: RGCO C-Corp formed 1998 iN CC. a Midstream Roanoke Gas aaa Q Local Distribution Company O Partner in Mountain Valley Pipeline (LDC), located in Roanoke, VA (MVP) Q) Founded in 1883 Q Partner in proposed MVP Southgate project 3
Slide 5: Roanoke Gas Service Territory
Roanoke Gas Service Territory QO) Serve over 62,000 natural gas customers Q) Customer Count breakdown: > Residential 90% > C&l 10% Q) Volume breakdown: >» Residential 35% > C&l 65%
Slide 6: Roanoke Gas
Roanoke Gas QO) VA State Corporation Commission (SCC) » 9.44% authorized ROE Q) Alternative Cost Recovery Mechanisms » Weather Normalization >» Revenue Sharing » Infrastructure Riders = SAVE infrastructure replacement rider approved through 2024 ee —_
Slide 7: Equity and Debt Profile
Equity and Debt Profile Equity: Q Top institutional shareholders: QQ) $210M Market Capitalization » —T. Rowe Price 7% Q > Common shares issued and > Vanguard 5% outstanding: 8,325,692 Q $37M availability on equity shelf Q Insider ownership: 6% >» $12M at the market (ATM) Q_ Remaining $110M on shelf
Slide 8: Shareholder Return
Shareholder Return $3300 ) “77 years dividend payments $31.00 $29.00 17 years dividend increases $27.00 $25.00 Fiat 5 a 7% dividend increase = $21.00 $0.74 armel dividend 6 years record earnings x 3 $19.00 % $17.00 s & s s s aueys 19d spuapiaia $15.00 $13.00 $0.50 ee —Share Price ——Dividends/ share
Slide 9: Growth Strategy
Growth Strategy L) Regulated Utility Investment > CapEx L) Ongoing Regulated Utility Growth > Customer Growth > Volumes Delivered L) Non-Utility Investments > MVP > MVP Southgate oe ——_
Slide 10: Roanoke Gas CapEx
Roanoke Gas CapEx Twelve-months ended June 30: ($000's)
Slide 11: Roanoke Gas Fiscal CapEx
Roanoke Gas Fiscal CapEx ‘ Fiscal YTD at June 30: ais Pip Ramen TT i $16.5 $14.5 Other $12.5 Capital $4.0 $10.5 $8.5 $65 Customer Growth & $4.5 System Expansion $2.5 $4.3, $0.5 Total Capital Expenditures $2.0 million or 12% decrease
Slide 12: Customers
Customers 3% growth since 2018 ‘Average Customers (Twelve months ended June 30) 2018 ©2019-2020» 2021 New customer add YTD Fiscal 2021 460 Fiscal 2020 550 Fiscal 2019 670 Fiscal 2018 600
Slide 13: Natural Gas Volumes
Natural Gas Volumes Volumes Delivered (DTH) 4,000 YTD 2020 YTD 2021 3,500 3,000 —— § 2500 3 = 2,000 1,500 ———] 1,000 - 500 Residential Commercial Industrial 2021 vs 2020 Total Volumes (3%) Residential and Commercial Volumes 6% HDD 1%
Slide 14: Earnings Per Share
Earnings Per Share TTM June 30: $1.35 $1.25 Fiscal YTD at Oe) June 30: $1.05 $0.95 2021 2020 $0.85, Basic: $1.23 $1.34 Diluted: $1.23 $1.34 $0.75 $0.65 $0.55 $0.45 ‘@ Dividends/Share
Slide 15: Return on Equity
Return on Equity ‘Twelve months ended June 30:
Slide 16: Outlook
Outlook Q ESG Q Strategic Opportunities Q Economic Development
Slide 17: Environmental, Social, Governance
Environmental Y System Modernization v Emissions Reductions Uk ¥ Reduced Carbon Footprint ~ Customer Partnerships Governance Social ¥ Employees ¥ Community Engagement Vv Safety “Economic Development. Diverse Board of Directors ‘Compliance and Risk Management Diversified Shareholder Ownership Incenti
Slide 18: Strategic Opportunities
Strategic Opportunities L) Midstream UL) CapEx L) System Expansion
Slide 19: Mountain Valley Pipeline
rm Mountain Valley yn MVP MVP O Construction resumed In-service C) Project 92% complete Cl Target summer 2022 Southgate (175 mile MVP extension YTD 2021 2020 2019 C) Target spring 2023 s $20 $40 $60 $80 (mm) Cash Investment Ml AFUDC equitrans ENcHOY 2 Geon€dison OWSiecom FREE»
Slide 20: System Expansion Phase I complete
Q Phase | complete Q Phase Il > $1 million > 6,800 feet Q 5.8 main extension miles FY21 » 3.3 miles YTD > 2.5 miles projected >» 460 Customers
Slide 21: Roanoke Gas Capital Budget
Roanoke Gas Capital Budget $3 $22.9 abe $20.0 $20.0 $20 $18.0 $18.0 g S15 s = s10 $5 $0 . —— —— : “ 20208 2021E 2022E 2023E 2024E 2025E Forecast totals through 2025: SAVE Infrastructure Replacement $39.3 Customer Growth & System Expansion $32.2 Utility Maintenance $25.6 as $97.1 Total
Slide 22: Economic Development
Economic Development Economists say Carilion Clinic adds over $3.2 Billion to Virginia’s Economy The Roanoke Times (Times) Jan 2020 Munters Group AB, a global leader in energy-efficient and sustainable climate solutions will build a state-of- the-art facility. The company will invest $36 million. Ro
Slide 23: EPS Analysis
EPS Analysis $1.10 $0.70 $1.30 Implied Dividend 2018 2019 Actual Actual MEPS (net Midstream) Payout Ratio: 68.5% 2020 2021 Actual Forecast oe Midstream EPS Mi Range
Slide 24: as
as
RGC Resources — Investor Presentation (September 2021) on 6ix