RGCO - Earnings call transcript Q3 2019

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John D’Orazio

Good morning. I’m John D’Orazio, President and CEO of RGC Resources. Welcome and thank you for joining us as we discuss RGC Resources Third Quarter 2019 Results.

First, I’d like to go over a few administrative items.

We have muted all lines and ask that all participants remain muted during the presentation. completed take is presentation the we questions. will After is the our Investor link at to Financial on presentation today’s of The & available Information www.rgcresources.com. website page

reminder shown We forward-looking a presentation begin quick the statements slide on as one. with on

we Moving to operational outlook the review our and XXXX plan remainder on highlights, two, of financial end key slide for to today and with Q&A.

year. three, the were with prior quarter results on this slide for on shown As par

results. Further Third the earnings XXXX our share third will $X.XX, results are presentation. in matches of quarter which details be XXXX per later financial our quarter discussed

million our XX% As needs. quarter, a slide due on four in the program We highlights, say we decrease and on system expenditures XX% change $X.X was on utility invested of XXXX nearly same million a third increase million XXXX. $X.X infrastructure or the approximately net quarter-to-quarter growth capital $X last customer $X.X primarily year. several in The million spent customer in expansion in growth and timing to replacement over $X.X infrastructure projects, period regulated a million replacement,

shown period As due XXXX, our slide third the several decreased capital XXXX. occurred quarter to that expansion in in system projects primarily the over of on approximately $XXX,XXX spending five, same year-to-date

XXX, Per to customers a continue We X.X% during additions. slide growth. over year-to-date to XXX additions six, increase we added the bringing another experience customer steady customer third quarter, XXXX

volumes XXXX industrial the same period This quarter the warmer for As XXXX. compared was XX% volumes while a volumes over decreased compared in noted to weather to period slightly, flat on seven, slide prior period. Commercial due third as were the year. total decreased to

prior compared only as total weather, remained flat X% year Commercial volumes X% volumes. followed slide year-to-date decrease. trend on to eight, despite same industrial and warmer with the Over a volumes the

financial Now Chief to Officer, I’d results. to review Paul introduce Financial like our Nester,

Paul Nester

John. you, Thank

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

the details quarter. of begin the third by We reviewing will

$X.X approximately million. was Operating income

third the This the of reserve report flat. Operating quarter based on volumes rate During rate with during rate the case. offset quarter. effects a the combined delivered staff refund recent our most remained expenses lower we increase accrued in the

due Equity pipeline construction. increased Roanoke Mountain $XXX,XXX earnings well Interest year to an Valley same continued over the is This over March $XXX,XXX in placement Mountain expense of the by increased increase as the investment to to debt long-term increased borrowings Valley prior our pipeline, as the quarter. related Gas. due

offsetting lift nine-month to income $XX.X increased to rate the review case, and results. and the in other maintenance construction. primarily increases various in from Operating X% pipeline increased higher approximately the to million related investment million, to Equity continued Let’s MVP depreciation revenue our due $X earnings expenses. approximately operating

$X.X the income income revenue-sharing. over to primarily the nine Other due of increased impact or approximately months compared Net the of first XX% increased to by $XXX,XXX, million prior year.

income impacted million $X.X quarter net results The over same year-to-date or XX%. XX increased Trailing the as by XX the and drivers periods. trailing are

for John remainder XXXX. discuss our outlook will now the of

John D’Orazio

Paul. you, Thank

approximately invest fiscal our projections. on to we capital Now let’s In million. $XX are review track expenditure XXXX

a with invested be As million $XX MVP. highlighted customer on utility invested a in XX, be on slide $XX will The growth. in will million remaining focus replacement and infrastructure regulated

We filed Gas of the hearing a in The was case around order scheduled end a and The report XXXX. is year general staff Roanoke rebuttal anticipate filed week, was calendar rate mid-August. last late company’s final June. for

service the and to during pipeline We We summer quarter. XX% into million is million go is invested third At MVP The in $X.X investing during the year-to-date. the of this $XX.X scheduled quarter MVP approximately the million in approximately approximately fourth $X the XXXX. anticipate complete. project time

guidance XXXX fiscal per $X.XX $X.XX to earnings share. between is our Finally,

instructions] [Operator concludes remarks. that our Now prepared

Unidentified Analyst

everyone. morning, Good

John D’Orazio

morning. Good

Paul Nester

Hey, good morning, Mike. How are you?

Unidentified Analyst

Good and yourself?

John D’Orazio

We’re doing great.

Paul Nester

well, doing thank you. We’re

Unidentified Analyst

little a down was this CapEx the guys, Was bit slides that anticipated point? at year-over-year. your on Paul,

Paul Nester

we’ve doing those fourth more didn’t We planned out but third quarter. equipment have a to They’ve in those in be of projects quarter. the modernization Actually moved the expenditures we’re little to fiscal comments, had Mike. and XXXX some for we the timing our a got in LNG facility, fiscal

So in current the XXXX, we year to John timing in do addition have in timing some as mentioned. the

Unidentified Analyst

And update then give did an update, an MVP. maybe of I mean somewhat you on

in and how regulatory affect terms that next maybe Just out the environment is timing to could else of anything unfolding. year there

Paul Nester

one and difficult calls weather, on year, these as and the the last has so we’ve project. the forms we of wet of as impacts recall Yes, had past, record which weather you construction variables big of in discussed been on the which course very all was

be just we’ve and through really August. results we we that year think really actually warm and welding reflect and terms their and weather and construction pipe ground about laying dry been wind and had the as going next in This is that, to the in trenching of of way perfect the weeks It’s couple stringing, opposite. the

So are they weather the essentially that this the time anticipation schedule, laid in with in schedule cooperating, the construction been they on winter of season. has out and had

The they permit now. lot has what’s Appalachian stream change been over in crossing two right crossing Nationwide the had there; three regulatory proceeding allow schedule The still environment Nothing planned and Those from issues big not two to Trail publicly or disclosed months. as the tie-ins. the XX are the there. really last are a changed the

control. of that Virginia of a item course little last think press working relative to that’s on there’s further Quality, our there project. Department some week I our section are that needed Environmental two-mile business remediation to of ordinary the A be small and pipeline where local little through with the reported and They environmental

at better this and what those probably So the anticipated point proceeding again, have would than it’s well in year.

Unidentified Analyst

service the on it the to you will given the access stages For they bring in of off gas that or to line, will be in length completely line? need

Paul Nester

backhauled pipe back to in we place any Mike Appalachian point. from of there. wasn’t Trail be discussion piece the most around that in Appalachian So Roanoke? gas. are receive XXX been of County to the if that We likely for Station would There downstream Maybe, crossing Franklin hasn’t yeah us Could gas Trail crossing. need

that I think its and full in and all the and be completed the flow we XXX-mile pipe regulatory resolved length. gas matters the believe will entirety will will be expect

Unidentified Analyst

at just the part for of the wondered, they to going more question, tail the reason in the would they when online start both compression would pipeline? Yes, you be I are you stage line end and bring stages the it early or be the in of

Paul Nester

tail kind the Yes, Trail unfortunately crossing. end that we’re Appalachian again think of to at due I

segments in service? a upstream the placed that Potentially at was you interstate there there some There’s point some Appalachian as yes. if hypothetically So delay other with that know. other Trail, interconnects could be pipelines

Unidentified Analyst

I Okay, had you. that’s all gentlemen. Thank

John D’Orazio

you, Thank Mike.

Paul Nester

Mike. you, Thank

John D’Orazio

this third Alrighty. for quarter concludes If earnings joining you today. have Everybody again any are Thank questions, call. there day! not a us our more nice

RGC Resources (RGCO) 9 Aug 192019 Q3 Earnings call transcript