RGCO - Earnings call transcript Q3 2018

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John D'Orazio

Good morning and welcome to RGC Resources Third Quarter Earnings Call. I'm John D'Orazio, President and CEO of RGC Resources. Thank you for taking the time out of your day to attend. Please mute your line and hold your questions until the completion of the presentation. Also the link to today's presentation is available on our Web site at rgcresources.com on the Investor and Financial Information page.

a forward-looking just on as begin, two. slide we reminder statements on shown Before

three, to take we and slide to Moving plan our for financial review outlook XXXX, questions. and any highlights, operational key

four. $X.XX earnings quarter are $X.XX, on per share Our XXXX. Fiscal is third earnings a per year-to-date which over as are shown slide improvement $X.XX, share

year-to-date the presentation. in will We results financials cover more third later quarter and

and million customer increase supporting the spending growth, $X same customer on The infrastructure in to As system needs. on last slide other growth. regulated quarter-to-quarter Slide million million million primarily elevated due five increase $X.X third the spending. on six projects replacement; capital $X shows $X.X reinforcement over was capital highlights, Approximately utility year-to-date quarter, period on year. million we in spent invested was $X.X

We million are infrastructure primarily replacement due system XXXX, to of reinforcements. approximately and ahead $X

on third year. the customers have top We as customer's volumes growth continue in We shown our XX% volumes eight, and customers quarter, increased and our seven. experience third residential usage XX% to same XXX X%. our increased to period steady to commercial added On compared On our slide XX% increased nine, period last year-to-date same the compared Of slide volumes the commercial the slide significance, added year-to-date. XXX last year. customer in quarter increased ten

targeted with the year-to-date, We date Valley we are construction in $X.X is the a invested million project. in-service on first slide Mountain XXXX. have XX. of under quarter Fiscal Pipeline

with projected end at MVP Southgate expansion As also of you in the was the date may April announced in-service XXXX. recall,

Financial results. introduce will Paul Now quarter the He I Officer. and review year-to-date would Nester, our third to Chief financial like

Paul Nester

you, Thank John.

we you of via For XX. those along are on webcast, slide following

slightly or than investment Valley earnings to industrial rider $XXX,XXX infrastructure increased the customer higher over third the primarily to operating prior was increased our SAVE Year-to-date in adjustment, earnings increasing increases volume. growth, $XXX,XXX year-to-date. to tax due Mountain project. the Pipeline due prior due operating or in the revenue, below reform operating and income investment volume. XX% XXXX, in Equity replacement year primarily due rider in Mountain the industrial year SAVE approximately $X,XXX,XXX customer $X,XXX,XXX increases $XXX,XXX in revenue, to approximately is Equity quarter, income For Valley Pipeline and growth, approximately the adjustment. Without income this the the increased

we and year-to-date have XXXX. the approximately remained As has higher our XXXX. borrowing increased flat in planned, Interest on when cost $XXX,XXX higher rate compared gas $XXX,XXX and quarter expenses expense operating to excluding to third

Our tailing XX-month outlook. earnings are $X.XX will up provide XXXX now the compared to period. John in the X.X% and $X.XX prior

John D'Orazio

Thank you, Paul.

Correspondingly, our Let's our projections $XX.X We on on XXXX calendar approximately of million review weather focus spending. XXXX in legal lower. the from $X.X representing XXXX the to our in estimate the Mountain to replacement moved has million investment in project fiscal fourth Pipeline approximately $XX quarter. from expenditure million, growth, capital our attributable XX. first to customer spend We Further, and investing XX% of end Valley and total expected Due increased million proceedings, completion infrastructure $X.X and the XXXX. slide delays of we XXXX, investment quarter of anticipate has our to MVP plan the to date is the fiscal capital maintain increase XXXX. an

any $X.XX like the concludes questions guidance to fiscal at our XXXX We take audience. That remarks. remains per Finally, to would range from share. prepared earnings our $X.XX now

Mark Levin

Levin This morning. is good Hey, Seaport. How good you? are from Congratulations Mark quarter. a on

John D'Orazio

Thank you. Good.

Mark Levin

very are you Yes, welcome.

for positively would the either 'XX, dollar do less a early early are second in the maybe make couple feeling just changed the you question has confident confident and And year, one CapEx the Thank it that share ones, things, number? -- reasonably So guidance still to any is about just two or anything with of then more you little for but around has quick a 'XX, feel that or on thoughts? negatively per you.

John D'Orazio

All right.

guidance comfortable $X.XX with for $X turn for predictions, the CapEx we're And and the his yes, guidance On the has figures. I 'XX, Paul. to XXXX. share between will over that our per He

Paul Nester

you as in morning. Hey, from prior we on our refining Mark. and preparing CapEx Good think and probably the forecast are budget our of in for presentation, I are Yes, we the We 'XX high process as that that and probably recall to think not XXXX. the will million range. million bit, that $XX probably XXXX, $XX little a up be million for $XX see we to quite in do drifting as number $XX

Mark Levin

it. very helpful. Got That's

Paul Nester

gas the providing CapEx. just --

Mark Levin

you. how that's Valley. going? you then I in-service break obviously -- guys out Got updates, on around Mountain just then MVP, just mentioned quarter, And any And you any first think color

Paul Nester

Yes.

little here will spring cold Virginia. you been think dries part the bit, I left. a call said wet remember let's last in left, it a on out we hope The of cold it's that hasn't but the wet this

the from the had And partners, and project primary first as and really you of just John EQM moved has to the course quarter. last the have you date have NextEra, in we rain So, in-service mentioned, tremendous month. know, probably seen

Circuit they proceedings because Appeal, out have working as notably and has the moving And timeline, Circuit the along market But legal of of definitive well. really those timeline. considered doesn't a project no the to made is So Fourth and doing of to fine. that, coming those a news, vigorously weather, really honestly that on that been this with they're can is timeline have on try project they're those. the couple things really working Court working definitive just all Fourth the the towards meet at point everything There

Mark Levin

XX-Q, final then today? that And would perfect. from the be you or that's And morning this think would me, just up question sometime

Paul Nester

like looking Monday. it later We maybe today, it right Monday It's now. file could but

Mark Levin

morning. time appreciate Okay, the great. this Thanks very much. I

Paul Nester

you. Thank

John D'Orazio

you. Thank

John D'Orazio

other call, and of If our attending rest everybody other the summer. Are to you. Thank All enjoy questions? questions, no thank any would your there for there like are right. we

Paul Nester

you. Thank

RGC Resources (RGCO) 3 Aug 182018 Q3 Earnings call transcript