RGCO - Earnings call transcript Q3 2021

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, Incorporated. Thank you for joining us. We hope your Monday morning and you week is all to a good start. With me today are Tommy Oliver, our Chief Financial Officer; and David Garcia, our Director of Financial. you Third us Quarter thank our we and XXXX Fiscal Results. again for as joining discuss Welcome We do have a few administrative items to review.

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

on and Slide presentation Let's This X, financial forward-looking year-to-date outlook started. go fourth and our ahead on This forecast and operational for by statements will third quarter is does agenda full-year Over contain we review projections. get morning's disclaimer. and X, results. quarter XXXX followed the our Slide results, our and

ask We will questions. conclude with an to you opportunity for

are volumes are plan. and right Slide the of Moving with results year-to-date is we third strong delivered Gas. and on Customer and on Roanoke to pleased capital spending growth quarter X,

Slide XX% on noted X, number customer last growth than As better XXX year-to-date is our of year.

previously We discussed miles. have new main our

expected, miles miles year-to-date another only by a X.X third we times. which main miles, new Fiscal the X.X fiscal X.X exceeds reminder, in completed to X the XXXX, total had bringing as quarter of extension. As we XXXX

fact switch similar fuels X, to quarter Slide large primarily natural back down, to volumes and coal on switched Moving continue be to that prior firm gas to Customer volumes third year. were the to industrial in the in has Overall due customer XXXX. XXXX. to

parts year-over-year and continue firm and customers prior up manufacturing stronger to On in when the XXXX XX are many year. building weather products have However norms, consumer consumption of year-to-date X, compared Top have noticeable suppliers, than increased gas increases. industrial manufacturing, their our Slide to volumes

on spending review Let's Slide X. capital

and has X million kicked project Two June project project of July Phase had quarter in $X.X timing. We highlight XXXX. the should by capital almost XXXX. are our XXXX, of XXXX, due we key to main for those Ridge miles Blue other and renewal extension million our XXXX, fiscal to in approximately Station projects would complete discussed. of spending Mason Signature expansion relates main through project of year-end. like extension the lower to We new business just are off support entirely this that in and than $X underway [the Carilion] the be

customer has increased from XXXX New our to very that $X.X provide with of results. details the to now million. services, mains and Tommy that. financial support capital happy will We're additional XX%

Tommy Oliver

good we consolidated Paul you, in statements condensed Thank and have Slide X. discussion, morning of To everybody. income included our on this aid

start prior same the third by for share, year-to-date Let's fiscal SAVE and with of were Resources year. the quarter the prior compared Year-to-date comparisons. to diluted the $X.XX of XX% $X.XX to attributable $X.XX firm of earnings our XXXX per X% third Operating and with and compared $X.XX quarter earnings income increased completed share, customer year-to-date, diluted growth, quarter revenues, volumes. largely quarter-to-quarter per period. to from

earnings and subsidiary. second the we limited income the result construction. stated, our venture, which commensurate is Valley a share equity performance per seized in of As Mountain very Paul joint in was the the from decline are earnings growth periods Roanoke with with in Gas The comparative and for the two pleased reduction net of quarter

trailing from the results review at XXXX. XX months Let's June XX,

impacted last and income revenues, growth, was quarter's favorably customer firm our call, on by discussed earnings volumes. SAVE we As operating

moratorium. well COVID-related the the service half a offset off initiatives However, moment prior of debt, fiscal regulatory a last in discuss take as maintenance this as a XXXX. I’ll bad was of year disconnection right by now asset, to

of and expire operating At appears an are utilities action on in by The unlikely or disconnection residential XXXX General prohibits non-payment. juncture, in earnings under As prior a will customers which session. apps extension special is for which currently in we calls, meeting we the accordingly. Virginia moratorium planning this discussed are August Assembly, moratorium, XX,

the In be will will additional with addition, with there State allocated help turn by funds now to is also the customers to a back in other Roanoke our Gas possibility State Paul. over arrearages. that along I it utilities

Paul Nester

you, Tommy. Thank

the starting discuss remainder Let's Slide XXXX, Roanoke of Gas on fiscal capital with X.

continue We fourth fiscal of first of extensions quarter Momentum into new at fiscal XXXX. quarter $XX.X that is the expect and this spending. to end through we million continuing main and year total additions customer expect on to the

projects underway. stated As key earlier, several are

included with stations. an renewal started foot] $XXX,XXX. gate X,XXX this Phase Station, total X previously. the have already Ridge, be plan renewal We year’s approximate [$X the we cost That'll discussed of is in safe Blue main is extension. older approximately mentioned project over our X This a and We of which million miles Mason one in which above is of

will for of over project to quarter Some XXXX. that spending spill the of first fiscal the

say you we on and not because which do a been quarter, Mountain update good a change we last Moving Valley, brief thing. Slide really on give to want since brief is significant there's to XX,

a is been in permissible. good is the season, the permits same weather the construction also in still not of legal had upland of budget work the has here They've been has or in-service the helpful. There's of ongoing. quarter. and Actually any Virginia since other been which has The project a our on So, dry, last really any part construction the still allowed summer hot targeted XXXX. with and change date really proceedings of status

to let's our review year. Moving fiscal XX for guidance just up, wrapping this Slide earnings and

$X.XX. As Tommy already discussed, per is year-to-date earnings share

that the earnings related primarily equity to that Valley driven full-year we're decline by in to Mountain Tommy range, be investment. the earnings and However, discussed our $X.XX still $X.XX to expecting

year-to-date quarter. see fourth interest there’s earnings per to any] $X.XX, from the That's Slide, difference about June. share, primarily As Midstream is you [for equity at between in on believe be $X.XX can the we will investment the earnings expense down which due in the and

how operating and investments come expense discussed. fourth that in as – reserve XXX% There could in little moratorium more operationally bad note the that year. on are guidance remarks. we [Operator make the moratorium service trying our position to little a service not we certain also and may That but complete go, give some year. maintenance to we a in this residential our manage to to to that plans want Tommy last as concludes Instructions] quarter it around bad expense a making just come also disconnect debt on a debt be We similar We're for be More will prepared additional to and that. pertains as fiscal

Unidentified Analyst

[Indiscernible] morning everyone. Good

Paul Nester

How Mike. are morning, you? Good

Unidentified Analyst

sir. Doing good

Yourself?

Paul Nester

for Thank Doing well. you joining us.

Unidentified Analyst

My pleasure.

that switched was or coal, they a the on was move large another price back off to gas? done had strictly Just two questions, first, the there reason to customer decided

Paul Nester

and Yeah, hit Michael, know, recall year it with gas historic truly the, you you probably the last as consideration, economic is know, in XXXX, lows. natural impact prices related severe an economic pandemic, to

below year manufacturing know, Hub, Henry per as this well of was at a you part And fact, the manufacturer process. enjoy In their cost to $X able decatherm. low last that

As natural Hub gas has the increased we demand range. prices Henry in $X know, this significantly decatherm for we're the year. fact over And seeing

fact, coal. back in did they to so And switch

has been is, pretty Right now, also, significant Now, markets. that demand in not spot coal the seen some a coal level interestingly quite for price you the there's in time. at know, enough, also

help successful, we a that relationship particularly great we're be can we do watching them everything with and support So, we with carefully. their them. company, to them regards to situation have With fuel And and choice. this

Unidentified Analyst

in them switching to to on the what be idea that good them was the comment close point. to gas asked versus that with you coal needs up prices now, guessing for Your might I to have [Delta] pricing for why switch price the the terms And coal price guys it I'm over. question. a coal – going be pretty of

didn't thing other moratorium; service catch apologize, little what ask the fuzzy call a to on there. I wanted The the the date. expires got that date? on I was I

Paul Nester

It's Sorry the end of at August about this Michael. month. that, XX,

Unidentified Analyst

August XX. Got it.

Alright, That's I Okay. Thank all had. gentlemen. you.

Paul Nester

more any. any appear if anyone thank you. entertain it Instructions] few We to Well, are Well, questions [Operator has doesn't a questions. more there happy

us full-year you thank a day our you forward much. we you in week. We you third for review hope this joining and results. with So, We call. have Thank speaking do, again quarter great to so December look great earnings a our again, do and concludes to

RGC Resources (RGCO) 9 Aug 212021 Q3 Earnings call transcript