- Earnings call transcript Q4 2022

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Paul Nester

Good morning, everyone. I'm Paul Nester, President and CEO of RGC Resources Inc. Thank you for joining us as we discuss RGC Resources 2022 Fourth Quarter Results. We do have a few administrative items to cover. [Operator Instructions] The link to today's presentation is available on the Investor and Financial Information page of our website at www.rgcresources.com. me and Strategy; our Davenport, as of are CFO; Regulatory President our our this Finance and call Affairs well with Field, Tommy Vice Oliver, of Director morning. Jason the on as Kelsie All right.

have Moving in and looking disclaimer today's We on found forward projections can our forecast be over and the X. to statement Slide do presentation first slide.

some XXXX, delivered financial X, give the fourth last the fiscal XXXX. Jason RNG a case well the update volumes with of with highlights And the agenda. review results. and base and results we fiscal outlook start Slide for of We'll that to financial conclude quarter. operational on Tommy of week. us will an rate discussion as our especially Moving as and will I then for our and update And filed just will project the cover

Moving to Roanoke just operationally. our We subsidiary another in year had outstanding Slide X. Gas

to new customer last Our XX% we fiscal of in miles added year. additions the and year main are up compared X.X

our year. XXXX customer of in the count this and I not the the lasted lower and disconnect to year about until is summer the noticed we've which that started to spring appear moratorium, of our talked of with until turning of customers March but last pandemic processes late reinstitute in did XXXX.We off delinquent believe than this service be due previous may calls, You

of pay that our those reconnection. a service. like and we're want we've the the bills those miles service few capital give XXXX early colder heels of of in XXX We We in and in So miles customers processes main on you account but as weather we X.X number quarter that would went that renewed and of We 'XX customer started seek certainly on past just we change. spending, I reflect from have seen a to to the to to through not into XXXX. as doing our lot stats slide. expect to other the X.X December, fiscal about mention couple disconnect a main able first highlights their summer, are and now services operational talk were reestablish SAVE of XXX here also

given So we in XXXX a is results that operation survey hand in priority and our to I'll service, plans now over last ended financial operation. the capital renewed good number really and and XX the months result. and statements of undertook. XX, culture our miles action volumes, safety outstanding to produced and we spending. discuss will throughout our year A total, an we've This it did survey mile initiatives thorough delivered who XX that couple just one other has us over a September incorporate safety Jason some our

Jason Field

Thank you, Paul.

on X. We are Slide

switch delivered up same to highlighted due approximately were a fuel quarter ability and XXXX. their customer gas of between continued in process. the past. compared fourth XX% This largely was quarter construction has manufacturing gas fourth industrial quarter first natural of to the to Our its volumes in which This usage has into the XXXX, the was coal materials the we've natural increase. customer increase XXX,XXX Their dekatherms

of heating by was increase in our higher total in X. offset volumes spite delivered a move with decline X% degree than Let's days. decline The volumes. customers weather related ended year XXXX Slide were our residential on industrial transportation the number in fiscal to our deliveries X% that in We to approximately

We their move by over Slide -- XXXX. our by In usage seven fact, volumes six number customers increased of to top delivered on X. volume delivered

you midstream additional reassessment reflect Our subsidiary. value of the recall, quarter pipeline impairment our the the the first as XX, result drove in in of investment and was in of a and in our was Fourth the Circuit timing as March recorded an fourth Mountain The taken fair assessment. was impairment that the impairment results XXXX. This in financial but this our recent of U. of of of XX-K September S. most second Appeals hearing Valley the permit the provides details, reissuances all

prior to the the For of of debt expenses bad was higher assets less and other operation. fourth of exchange expense, professional quarter inflationary costs. assets, to of transfer year fourth a year the income responsibility for fees gas XXXX, exceeded increases operating for general in housing income the $XXX,XXX Other the the quarter their assumed our local the quarter In renewed distribution for Non-GAAP of Roanoke $XXX,XXX higher operating XXXX. from approximately natural prior due for than than was Gas due balances quarter the authority.

fees For our and expenses, maintenance $XXX,XXX of the the is managing a other than and do increasing which job our rate year, operating to debt. variable our income to Interest report professional debt higher debt, higher inflationary on we teams costs XXX,XXX interest bad We've are operating $XX,XXX,XXX to expense these rate a in an of related to overall due balances expenses higher combination pleased approximately continue XXXX. an and experienced overall increased environment. great increase in

investment fourth affiliate, quarter recorded November our reduction financial our and year-ended attributed quarters. comparison in second that on loss midstream fourth the XXXX, adjusted the the Additionally, Slide our GAAP in MVP was the we've We reflected number the and performance fiscal X/XX, results. Based the for and to with our in year on of for operations significant were there is impairment results on of equity move MVP non-cash which no our operating quarter earnings to X. on full construction in a since

non-cash in three of MVP for the for the of AFUDC quarter and the approximately the year. fourth September XX construction to million $X.X of a income ending months decline current was for the the The of $XXX,XXX in recognized activity adjusting year the result periods for year, net the September loss XXXX. was XX the for XX, the impairment In we underlying compared and XX limited income months Our growth and XXXX. $XX,XXX prior for $X,XXX,XXX net largely quarter both net ending the

Let's We year by the the Slide which XX in was move fourth to as Gas which teams utility a to fiscal of Roanoke for due number made months Tommy for of as over X. quarter investments $XX,XXX,XXX RNG the well prior a favorable will an by capital experienced year. totaled The construction project, spending property quarter conditions. execution XXXX, XX.X% robust on strong and review the approximately our minute, increase

Customer capital along invested XXXX. expansion now were the year, the outlook growth in with fiscal for $X.X RNG million system approximately expenditures For up and Paul in will project. SAVE. the primarily discuss

Paul Nester

Yes. Thank we're you, on Slide X. Jason, and

capital case, the XXXX our provide brief rates, and customers which Tommy Before overview spending increase we service. the forecast our a EPS recently and update will for of filed review discuss will and fiscal forecast, non-GAAP project rate Tommy? the our pay RNG gas base natural

Tommy Oliver

and Paul, morning, you, everybody. Thank good

are held those the the which quarter next be is hearing weeks, We both project into from closed work the the service judge. couple construction perspective. site project start law how been completed and the components our is the expected hearing of components go progressing it's Pipe at over regulatory of a to moving From in in regulatory point the hands the perspective, and we'll record year. so examiner to fiscal over expected administrative of on week already a the and is pleased to have constructed. second was of Operationally, Thanksgiving, we the or the the RNG

January the from ruling a in late late and hearing from expect We order a December examiner next of year. final the Commission in

prior a return And should $X.X an eligible $X.X rate As APDC rate XXX the basis points which adjustment G&A be clause. for of calls, add this drawn in base discussed our RNG of XX.XX%. through the base, earnings which is project equity rate million recovered to going on or million, enhanced is includes about and to

Turning currently requesting to get see incremental you'll that in last our with expedited ROE SEC SAVE case, file reset. of about X, of are an We're authorized X.XX%. we not rider the net we change our revenues save SAVE rate the requesting December that an We're the be being a rider, of case $X.X million. will though revenues recovered in this Friday, case rolling through rate and did

requested have basis on into interim rates go effect an the billings XXXX. We that with January of in beginning

to anywhere X it back review take months on to what then. from process expect depending I'll the intervene. XX Paul just over We turn parties to

Paul Nester

Thank you, Tommy.

Water forward Virginia excited partnership We Western project project looking to coming really and continue online. Authority with to the and be with RNG our that

can in RNG Slide the are there. see and We on green XX you project

course, of million XXXX on also have [indiscernible] to as track move approximately coated to capital Tommy main and with to in mentioned. going customer to continue, that XXXX. well We're $X.X as up in investments, slated million system wrap the and down our project And growth that $X.X fiscal rider We that number Services renewing SAVE that of pre-XX we have expansion Related continue some steady infrastructure steel and moving services.

the estimate presented XX. fiscal previously. Slide that XXXX numbers reviewing for Let's by XXXX our adjusted on EPS underlying conclude We've to Jason

expense I show does to in forecast interest subsidiary await completed. Mountain while environment, related midstream project particular, get as to higher a XXXX of financing result we the Our rate loss interest the mean, costs. a in Valley our

fiscal Mountain Valley ending expect income we XX, from Our fiscal don't year September operating our any in year.

XXXX again $X.XX implied in payout everyone increased of range case, forecasting offsetting helping course We per still our offering, to approximately and to share. to of in about in that from the we're Roanoke we're a with ratio result pleased utility. the inflationary pleased rate that. per starting like from XXXX are XX% an XXXX XX% rate fiscal is seeing and January with The pressures with $X.XX effect on the to share. slightly That note our dividend the dilution equity remarks. prepared that's And concludes billings the in March the Gas cost finally, We annual forecast that remind we're January strong would

entertain If any and to please you individual those. be have line we'll happy unmute questions, your

Unidentified Analyst

morning, Good everyone.

Paul Nester

you are How today? Mike. morning, Good

Unidentified Analyst

well. Doing

Yourself?

Paul Nester

too. We're doing Thank well you.

Unidentified Analyst

it's in Roanoke. cold I think

Paul Nester

is and and XX the a morning are pipes was beautiful flowing cold It meters about the turning. the here through degrees today gas

Unidentified Analyst

fiscal gentlemen today. you expect for On of have XXXX questions what -- do you cost would range MVP, 'XX? you a carrying be to for Two your

Paul Nester

Yes.

$X range can million I'm the pretax I but if be think, year. too here in to chime fiscal in million off, Mike, expecting we're for to think those of I the $X.X costs slightly Jason

Unidentified Analyst

then but industrial And particularly the have in those the talked of through the winter one you the to expect we've Do customer months? about past. least notice that help slides, volumes, the at Okay. on volumes

Paul Nester

Yes.

may are Mike, construction the broader to because even In you materials obviously, have -- sensitive economy manufacturer noticed that language materials we we that and did was indicated that use they're So intentionally, a other construction by housing, to manufacturer they're be particular this infrastructure on though material. more not doing their fine. building words, it's of seems specifically, type materials the quite materials hanging and building nature

warmer January. So They bit of in slow and regardless around conditions. down still quarter. plant as certainly April hopefully months, the the March reasonable the we Probably from do in little probably a to then we on not expect construction some we're do in there reasonable quite them this first be year. high And maintenance based get or they year, But volumes. volumes fiscal but back an normally winter as okay that's into for economic what seeing, as

Unidentified Analyst

in that Okay. at different gas and that playing the just wondering, is every dynamic your market. could out they coal moment and know I between in how was because I wondering just it's market switch

Paul Nester

a fiscal our coal to probably they're Correct. have in made switch XXXX, we in think more prices a calendar gas into from Yes, predictable they pretty and little certainly little those to coal become going commodity levelized as going XXXX, blend more significant actually XXXX. a

Unidentified Analyst

right. All

So, helpful gentlemen. you. Thank

Paul Nester

Christmas. other earnings Thank discuss your here quarter Thank you look Do you. and our families and XXXX. appreciate have prayer if on as a in and first today? call we that us conclude more season questions we call forward have is you any do this the we to questions, really safe have and not speaking holiday with anyone the quarter February It our you again Merry Mike. joining blessed does any Well, from and you of we fourth results

RGC Resources (RGCO) 5 Dec 222022 Q4 Earnings call transcript