Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — Q1 2018 Earnings Presentation
12 slides from Rgc Resources's earnings presentation, Feb 8, 2018
Slide 1: Slide 1
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
Slide 3: Agenda
Agenda Key Operational and Financial Highlights 2018 Outlook Questions 3
Slide 4: Key Highlights
Key Highlights Q1 2018 EPS: $0.28 Pre Tax Reform: $0.31 Growth Strategy Regulated Utility Investment Customer Growth Control Operating Expenses Investments Outside Regulated Utility 4
Slide 5: Roanoke Gas Q1 Capital Expenditures
Roanoke Gas Q1 Capital Expenditures SAVE Rider $2.6 Customer Growth & System Expansion $1.5 Other Capital $1.3 2017 2018 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 Total Capital Expenditures M ill io n s $0.5 million, or 9% increase in capital spending 5
Slide 6: Customer Growth
Customer Growth • 205 new customers in Q1 2018 • Consistent customer growth year over year since 2014 58,000 58,500 59,000 59,500 60,000 60,500 2014 2015 2016 2017 Average Customers (twelve-months ended December 31) 6
Slide 7: Industrial and Commercial Growth
Industrial and Commercial Growth RESIDENTIAL COMMERCIAL INDUSTRIAL VOLUMES SOLD (DTH) Q1 2017 Q1 2018 Q1 Volume - 2018 vs 2017 • Commercial 14% • Industrial 8% • Top 10 Customers 14% 7
Slide 8: Mountain Valley Pipeline – Project Overview & Timeline
8 RGCO is a 1% owner of the planned $3.5bn MVP 300 mile, 42” underground natural gas pipeline spanning from northwestern West Virginia to southern Virginia Will provide two billion cubic feet (2Bcf) of natural gas per day to New York, Mid- and South- Atlantic markets Secured firm commitments
Slide 9: Consolidated Financial Results
Consolidated Financial Results For the periods ended December 31, (Presented in thousands, except per share data) Fiscal 2018 Fiscal 2017 2017 2016 Gross Margin 9,073$ 9,391$ 32,492$ 32,218$ Equity in Earnings of MVP 149 85 486 216 Other Operating Expenses, net 5,414 5,412 21,278 20,778 Interest Exp
Slide 10: Consolidated Financial Results Tax Reform Adjustments
Consolidated Financial Results Tax Reform Adjustments (Presented in thousands, except per share data) Before Tax Change Final Revenues 19,218$ (462)$ 18,756$ Cost of Sales 9,683 - 9,683 Gross Margin 9,535 (462) 9,073 Other Expenses, net* 5,878 - 5,878 Income Before Taxes 3,657 (462) 3,195 Income Tax
Slide 11: 2018 Outlook
2018 Outlook Capital Spend MVP Investment Earnings 11 48% 31% 21% Roanoke Gas Fiscal 2018 Expenditure Plan SAVE Rider & Station Replacement $10.0 Customer Growth & System Expansion 6.5 Utility Maintenance 4.5 Total $21.0
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