RGCO - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Paul Nester

Good morning. I'm Paul Nester, President and CEO of RGC Resources Inc. Welcome and thank you for joining us as we discuss RGC Resources Third Quarter 2020 results.

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

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

our presentation Let's statements X, presentation. begin presents our disclaimer. forecasts contain This and projections. Slide forward-looking

will which X, third followed end outlook September on the a fourth the results with we XX. outlined review begin As quarter by for Slide of quarter fiscal XXXX

-- for trend first we and on month additions customer are total the Slide is Slide first quarter. with line expect through volumes noted XXXX. month As fiscal X in fourth account not expectations nine pandemic, of XX% Despite to X, in COVID-XX misprint. increase a A on the our the continue this

residential and in manufacturer We the have XX% The and the volumes in weather the our the this one quarter colder in the The can coolest volume delivery impacted heating-degree This experienced cool normal. fleet weather, the had a most example fuel of increases was restaurants example. third negatively days one history, of XXX% quarters was memory than interesting company's with recent XXXX. service pandemic, increase customers significant with over the for mystery in customers increased hotels, by certain all CNG schools food set commercial for pandemic XX%. that territory. Despite most

had approximately X.X in used late quarter. adding on delivered our year-to-date. call, the XXXX. with X to which now one March natural to throughput mentioned usage beginning customer last June manufacturer based the number a also in multi-fuel BCF on are This Finally, large a XXX% the volumes immaterial They gas customer for BCF industrial

to first last cooler year-to-date Slide the the compared six classes, in X, months delivered months Unlike nine the in the customer of fiscal was attributable weather X% and more our offset commercial residential the As year. Again, volumes mentioned. industrial than third year. X% total decrease prior volumes quarter, in shown primarily warmer or increase on XXXX XXXX the increased experienced the to previously

X. Slide the for to year. year-to-date spending on million of ahead is $XX capital prior of XXXX Moving fiscal slightly

SAVE main five invested Rider, our million $X over of miles system modernizing we Infrastructure With renewing year-to-date. the approximately to have continue

recent program reliable. have we our year-end. expect Rider that the I company and we SAVE add over mechanism application discussed us make system provide is years, that continues the before might the safer As fiscal for with SEC pending to allows more and distribution our XXXX by regulatory to SAVE the current approval the

highlights. like growth system. invested expansion have Randy? dollar on by schedule, in $X call. is project on mentioned will the oil last customers CFO Randy extension one steel and inch our project the we our completed have almost six by the we of of is I year. and of the services us the remaining on largest earnings you unserved and the capital It million main. through Burton of our extends Ridge complete system walk our mains to gas in project Additionally, installation feet plastic fiscal now would to our value, Blue of history. the end This update XXXX main Should

Randy Burton

everyone. Thanks morning Paul, good

favorable share. XXXX. Performance to a Slide to strong nine year earnings per prior had improved and on XX% significantly the first months EPS investment. MVP utility due fiscal indicated X, resources increasing on As the our margins a of deluded over $X.XX With diluted

Condensed have overview included of our our Now, results. Consolidated this Slide let's operating in turn discussion, to an X. Income we on of Statements Today

had gas a estimates. increased rate strong net start Roanoke case volumes of Let's our pandemic, spite improved with and year of with quarter-over-quarter the results. margins utility utility In prior quarter Gas

cost less XXXX, SEC measure staff to XX-Q high by rate addressed our QX non-GAAP prompted were gas as assumptions a report. margin, margins utility of in As utility is case result revenue as update gas. a of in gas normally find

for Excluding these margins FX, utility X.X%. would the gas quarter have approximately increased

$X.X you impact. operating by $XXX,XXX. to expense primarily recognition bad calls. approximately well for of related had an increased income increased minimal on increased investment interconnect the Interest professional share Non-gas As continued year-to-date due This as projects quarter Overall, of overall general was share, of a taxes a The expenses offset MVP. expense, basis, will the in this services, the third to on quarter. to higher Income increase MVP and spending in or quarter debt as borrowings depreciation in investment a approximately as in was net recognition AFUDC driven income. the to for quarter increases of see the Roanoke during reflects increased Valley $XX,XXX component the million per spending million $X.XX higher Midstream's increased financing rate to taxable to-date. the earnings the or XX% tax from capital the investment to The due income on Mountain increased the the to primarily discussed AFUDC. Gas increase result infrastructure. the construction diluted million RGC Non-cash equity the or $X.XX by diluted two in compared prior $X.X the prior for in expense Pipeline to related other the $X.X

total review down due were income for increased quarter weather. XXXX. adjustments were Operating The these the XXXX revenue in presentation and to to the and $X.X I months net warmer non-gas growth million. by In increases all in positive nine or restricted WNA of Like the company's $XX.X financial combination, increase increased income. Now, in a by the taxes will investing million This combined the the and -- the to discussed resulted by first continued, $X.X in expense. in as borrowings as general to compared factors year increase recognition a same our higher levels fiscal of Equity for construction as interest depreciation. MVP now accelerated MVP increased income of the to period investment increased to taxable let's prior in million an offset concludes expense, the increase fiscal $X.X investment Increased spend a capital the expenses of June the projects. over related assets, the first rates approximately million Primary hand income resulted of and funding same debt back Paul. write to results increases results. $X.X again earlier. sorry, related Borrowing the nine increased well bad earnings XX, funding the million of of review due expense months approximately ended XX% quarter-over-quarter today. drivers stock professional extent our over XXXX. Income tax Gas the interconnect services, MVP reflects on due lesser Roanoke our of other to of the AFUDC to period as XX% the a and analysis, two to regulatory amortization project

Paul Nester

Thank you, Randy.

XXXX, As outlook the of end on our we near let's fiscal review Slide X.

anticipate service will bringing project in XXXX in project MVP We fourth prime in approximately an XXXX early total investment in Ridge day to The Gas the SAVE Infrastructure the investing quarter $X million you our construction than are has future previously of various Rider to Roanoke working for is in The Blue a We and lead $XX be is XXXX create construction We still effects Accordingly, way. to Randy discussed to pandemic returned disclosed. the wanted regarding yet the issues. permit quick give earlier. lower the through continues significant fiscal required foreseeable cash not update uncertainty pandemic. will as investment targeted the and the project season. though million. calendar Investment

So had far, there been results. impacts operational on and minimal financial

consideration safety company -- the what still weeks would last our the customers would XXXX and monitoring here COVID-XX to pandemic planning. our into them certainly and responding taking dedication and just to thank gas months our are our effects I'd talked the the again. We the of the our been impacts remarks. fiscal I flow. over say has you on concludes of like partners prepared broader And And these of the pandemic the like and economy. call, of the the to several about prior possible to possible on outstanding reemphasize we we're during employees That in keeping at

unmute If six line. you have to questions, please dial your pound

Michael Gaugler

everyone. morning, Good

Paul Nester

are Hey Mike, good you? morning. How

Michael Gaugler

sir. good I'm

Yourself?

Paul Nester

We are well, thank you.

Michael Gaugler

than on I expected. much better the quarter, Congrats

Randy Burton

Thank you.

Paul Nester

that's I recall our dealing have you been we you. uncertainty some the and course with of end I last way and And discussion call, helpful. call there been our the as in thank outlook the we in uncertainty. fortunate of we at today's everyone our as things way lot will customers of in Well, think thank, a following you mentioned stated if was have

Michael Gaugler

with you certainly we your only could news and last the field, XX% can I construction valuable. the just Maybe a on still Actually is in boards. that off time XX% not is future Are timeline certainly boards makes with place? think have of that question taken call. back about the expansions Is the of where any off what MVP, Yes. much more of in us lot Maybe kind since going the are last chatter Atlantic you now Coast MVP MVP nowadays on. CP was they share been I complete. the

Paul Nester

shortly. those they're Wildlife can a share the week field that in they fairly field. August back in opinion to certainly, the Midstream I field be steps might the not their definitely shared. And a the they Service again hope at be into the this what has two And resume they hopefully Fish FERC the talk construction. quick we expect biological and not spending obviously approval get very stated managing earnings partner to on I'd glad with and bit. release issued little from to receive soon you X, earlier the Yes, think to in to And can but they get a back moment from S Equitrans

they the which crossings a reissue going Permit big that XX that's disclosed earnings to waterbody that too. allow is they resume. also think in the expect release Army And to Mike, Nationwide deal I Courts

come, So come a to of near here hopefully future. things in the lot very

development does us lot Valley. I frankly the the to Mountain Atlantic to Coast of have to ramifications it surprise industry think that in As the cancelled a was being a and

with Atlantic there's of primary of what think EQT, been a course the Valley capacity were who the and on Dominion they're the possibly I largest pipeline. with press who the and Duke bit in on Mountain is of Coast partners some shipper their doing quite

now be on I'm that to there's which sure positive road this around public point. think happening more comments down press Equitrans on lot Mountain that that. about dynamics a we been of discussion hopefully there'll any has the I some at the are made think Valley. expansion market Expansion, not So expansion. But

Michael Gaugler

think, up -- the line, pre-existing the I would have I on you mean capability compression to I Yes, correct?

Paul Nester

FERC engineered right. is it natural the presented I was more pipe through as right. Yes, gas for that's The flow think allow to pipe, to to

Michael Gaugler

had I congratulations on with than to all you that's so chat well, right other making, quarter. All Look forward yes. Okay, next the quarter. the

Paul Nester

very Well, let questions thank further asking you much us today and if and know. questions, for your have joining you

Michael Gaugler

do. I will

Paul Nester

a anyone they like dialing on call is question pound to the ask, there more by are Yes, there unmute or no yourself else you questions. have Well, looks can six. like

Paul Nester

and you. to XXXX. call we weekend. the forward a stay with quarter healthy XXXX review a Thank of December third Thank earnings great work you our for you concludes to safe This spread please and hope results. speaking fiscal in full We fiscal reduce again you We day us again the to try look all our to and have virus. as joining great for

RGC Resources (RGCO) 7 Aug 202020 Q3 Earnings call transcript