Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — 2021 AGA Financial Forum
24 slides from Rgc Resources's conference presentation, May 19, 2021
Slide 1: 2021 AGA Financial Forum
2021 AGA Financial Forum May 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 Act cof 1995 that involve risks and uncer
Slide 3: Agenda
Agenda OQ Company Overview O Financial Profile O Growth Strategy QO Outlook a CQ
Slide 4: Organizational Structure
Organizational Structure GL. NASDAQ: RGCO C-Corp formed 1998 ‘\ Gc Roanoke Gas SS O Local Distribution Company Partner in Mountain Valley Pipeline (LDC), located in Roanoke; VA. (MvP) Q Founded in 1883 2 Partner in proposed MVP Southgate project
Slide 5: Roanoke Gas Service Territory
Roanoke Gas Service Territor Q) Serve over 63,000 natural gas bss customers Q) Customer Count breakdown: Residential 90% Cc&l 10% Q) Volume breakdown: Residential 35% = > C&l 65%
Slide 6: Roanoke Gas VA State Corporation Commission (SCC)
Roanoke Gas 1 VA State Corporation Commission (SCC) 9.44% authorized ROE Highly Stable 1 Alternative Cost Recovery Mechanisms Business Model Weather Normalization Revenue Sharing Infrastructure Riders SAVE infrastructure replacement rider approved through 2024
Slide 7: Equity and Debt Profile
Equity and Debt Profile Equity: QO Top 3 institutional shareholders: QQ $182M Market Capitalization >» T. Rowe Price 8% Q_ Common shares issued and > Vanguard 6% outstanding: 8,226,650 > BlackRock 5% QQ $40M availability on equity shelf Q 6% insider ownership > $14M at the market (ATM) Q_ Remaining
Slide 8: Shareholder Return
Shareholder Return $33.00 77 years dividend payments $31.00 $29.00 17 years dividend increases 6 years record earnings i 5 5 7% dividend increase SO 5 74 ane dividend —Share Price ——Dividends/ share o $ © x Vv 8 of © 2 2 © YY OS er aueys ad spuapiaig
Slide 9: Growth Strategy
Growth Strategy UL) Regulated Utility Investment > CapEx L) Ongoing Regulated Utility Growth > Customer Growth > Volumes Delivered UO) Non-Utility Investments > MVP > MVP Southgate ———
Slide 10: Roanoke Gas CapEx
Roanoke Gas CapEx ‘Twelve-months ended March 31: ($000’s)
Slide 11: Roanoke Gas CapEx
Roanoke Gas CapEx. ~ ie aes Fiscal YTD at March 31: Customer Growth & System Expansion $3.0 $1.4 million or 13% decrease
Slide 12: Customers
Customers 3% growth since 2018 Average Customers (Twelve months ended March 31) 63,000 62,000 61,000 60,000 59,000 2018 © 2019-2020» 2021 New customer additions: YTD Fiscal 2021 330 Fiscal 2020 550 Fiscal 2019 670 Fiscal 2018 600
Slide 13: Natural Gas Volumes
Natural Gas Volumes Volumes Delivered (DTH) BiFiscal YTD 2020 Fiscal YTD 2021 Residential Commercial Industrial 2021 vs 2020 Total Volumes and C HDD
Slide 14: Earnings Per Share
Earnings Per Share $1.35 TM March 31; $1.25 Fiscal YTD at Gus March 31: $1.05 $0.95 2021 2020 $0.85 Basic: $0.58 $0.70 Diluted: $0.58 $0.70 $0.75 $0.65 $0.55 $0.45
Slide 15: Return on Equity
Return on Equity ‘Twelve months ended March 31: 12.9% 10.8% 11.0% 2018 2019 2020 2021 12.0% 11.0% 10.0%
Slide 16: Outlook
Outlook Q ESG Strategic Opportunities Economic Development
Slide 17: Environmental Social Governance
Environmental Social v System Modernization v Employees v Emissions Reductions v Community Engagement v Reduced Carbon Footprint v. Safety ~~ Customer Partnerships. “Economic Development Governance Diverse Board of Directors ‘Compliance and Risk Management Diversified Shareholder Ownership Incentive
Slide 18: Strategic Opportunities
Strategic Opportunities Midstream CapEx System Expansion
Slide 19: Mountain Valley Pipeline and MVP Southgate
7 Mountain Valley rmMVP Nin SOuDHGAT O Construction resumed . O Project 92% complete Q) Target summer 2022 Lot geal ” Psouteste | 175 mile MVP extension Cl Target spring 2023 $- $20 40 $60 $80 mm) Cash Investment) @ AFUDC 1A 6 — < }! » / b — 7 7 a eequitrans He WconEdison O'iibeeam RE.
Slide 20: Roanoke Gas System Expansion
Roanoke Ses System Expansion a | Phase | complete Phase II $1 million 6,800 feet Customer Growth OQ 5.8 main extension miles FY21 3.3 miles YTD 2.5 miles projected 350 Customers
Slide 21: Roanoke Gas Capital Budget
Roanoke Gas Capital Budget : 92 sy, 5229 | $21.4 $20.0 $20.0 Millions 20208 2021E 2022E 2023E 2024E 2025E Forecast totals through 2025: SAVE Infrastructure Replacement $39.3 Customer Growth & System Expansion $32.2 Utility Mai $25.6 Total $97.1
Slide 22: Economic Development
Economic Development . oe Munters Group AB, Economists say Carilion Pceballecdsain Clinic adds over $3.2 Billion energy-efficient and sustainable sey climate solutions will build a state-of- to Virginia’s Economy the-art facility. The company will The Roanoke Times (Times) Jan 2020 invest $36 millio
Slide 23: EPS Analysis
EPS Analysis $1.40 $0.70 $1.30 Implied Dividend 2018 2019 Actual Actual BEEPS (net Midstream) Payout Ratio: 64.9% 68.5% 2020 2021 Actual Forecast iv, Midstream EPS Range
Slide 24: PRES
Co. PRES