Earnings call transcript Q1 2023

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Paul Nester

Good morning, and welcome to RGC Resources 2023 First Quarter Earnings Call. I am Paul Nester, President and CEO of RGC Resources.

Let's review a few administrative items. [Operator Instructions]. At the conclusion of the presentation and our remarks, we will take questions. presentation of on our today's Financial Investor to page Information website link is the available and The at www.rgcresources.com.

morning Vice and this Tommy Davenport, me are Chief Finance. Field, Joining Financial Director Oliver, of Senior Affairs; President External Regulatory of and Kelsey Jason Officer;

Slide for to and today's on X. X. call and Slide forward-looking our on presentation does is has Moving forecasts statements. contain This projections, X The agenda Slide

fiscal will review at quarter, operational and outlook, from be highlights we'll first our the the call. questions we financial talk the happy about usual, XXXX of take again, and As to end

Moving to X. on Slide

We customer good growth. continue to have

You'll notice shows XXXX. slight that decrease there a in customer from bar the count chart

were XXXX, imposed to And discussed gotten going as the about we've as and able our to nonpay we on for remember, been effect resume that, colder winter, we've may turnoffs. we that those You collection customers. consequently, customer some this of have of extensively utility the March on to counts had in disconnects into processes that weather back re-add was our XXXX able the moratorium

the in expect total go happy with really that and main fully We're miles Reno main. count over X.X is is of really Greater good in Our number. Valley the We We We believe XX,XXX adding just XX,XXX. that had months. new services customer under the still housing here strong. a quarter, coming to first extension, development another

approximately to We expect customers. again this XXX to new add XXX year

and first and delivered through spending capital for our quarter. us walk statements volumes, Jason, the financial

Jason Field

you. Thank Paul. to, happy be Would

We are on Slide X.

than XXXX. to a the year. up ago. weather approximately to the XX% degrees a XX% first delivered increase volumes quarter decatherms XXX,XXX first greater largely were were compared overall quarter Heating compared last year colder-than-normal due to That's of Our

quarter. continued gas to an continued during higher the single and to due natural its benefit increase utilization that our volumes we customer from transportation interruptible in multi-fuel has Additionally,

X. Moving to Slide

highlighted. are results financial Our

our we for year. of previous weather quarter, quarter of March income ending to Operating contracted higher was debt operating our from million in expense midstream net XXXX, operating due Slide difficult impact due the year in the results December that for is variable affiliate for primarily $XXX,XXX increases income in comparison of rate per effect the normal year $X.XX approximately last offering, was the up, share, Interest On per exceeded compared to basis, last For to of result expenses the expense was which occurred the about XX-month small were equity down the on higher due net X. up to the share, the nongas earnings The was reduction $XXX,XXX. Valley an in costs. impairment bad on adjusted approximately adjusted and quarter recorded share XXXX services, and of operating of dilutive to a that Pipeline. which our saw Overall, expenditures of recorded the our the per quarter first for year, while $X.XXX prior affiliate. of revenues our in reduction for personnel rates compared to debt, we midstream that Mountain a relative the in and $X.XX We've again impairments income. XX, we

impairments move million. of the and removes see you income impact $X.XXX the income, you'll after-tax If Slide which net to net underlying underlying our X, reflects those of

in XX those months we compared and here to of in As XXXX. down the recorded we're fourth This you recall, pleased with quarters overall, financial And is result that second XXXX. performance. $XXX,XXX the

some that. which a case We'll feel nongas little of we the we December, filing, remainder to in pressures year. good with of those environment Our the inflationary this like cost rate filed job which alleviate later in of early management did costs a -- discuss through were we we the expect

to that utility $X.X increase by we've first quarter of result and primarily Roanoke X, about for was transition investments Overall, Slide the on SAVE we property, you'll first up we in of experienced year eligible the and by investments $X.X RNG compared made the was This we strong renewal fiscal of million to last invested utility that utility approximately X property year. months Gas see the that in made the million. projects. project If in these

fiscal Paul and Tommy for discuss XXXX. now of outlook the will the remainder

Paul Nester

incredibly the to we and you, the the make Thank to about Roanoke our up quarter that in first quarter Gas part efforts we here. with of like fiscal thrilled just had, our Virginia proud review the one comment Christmas forecast. extreme really with cold the we happy had of Jason. just leading and before but overall year event in mid-December operation I'd I'm weather

Our and folks customer, something very single and exceptionally We not well. that's about. our proud happy we teams did a lose of and performed that are

forecast, our rate filing. for look then at will conclude projection with is facility further base and XXXX at update the full case Tommy capital investment as us year. to the talk our earnings Tommy RNG give about our on projection, going look will share nongas So project. our a we We'll some nice on we details per

Moving to on Slide X.

of our investment leading still are we see, spending. with million capital SAVE can You $X.X

words, We're annual the in plastic comment about that's you of little upgrade. We're the process our spending minute, like or We're but to we other in the this this or Planning, remainder X there. renewal about system update years. ERP, spend projects X on that trajectory to $X.X renewing going That's fiscal still addition to -- spend on continue a of Enterprise pipe. year. Tommy I'd Resource about other In for essentially. talk of pre-XXXX last doing been an a the year. in on. we're going through to is have We that actually this that projected million to RNG facility Just couple a adelaide noteworthy

it's life. distribution the a to Virginia there. and We're working us get actually operations part right areas teams large our modernize and area finance Carilion of and just invest continues addition Tech, is down It's We're in good to a Roanoke. building. to of end the a plastic that XX medical its time area new the years also main There's system, for It downtown support been at and tool It's $X.X Medical going is there, are Memorial Carilion put and growth. to a and now. about School school system that X-inch building reinforce in areas the another million project the old going system to our Reno IT to old. Our but through in new very Hospital,

to as million main opportunities other funding, related Transportation mains. that putting fact, it on mains general to more The what necessary the in that as presently requires bridge And make gas And approximately occurring replacement hanging capacity well an and maintenance are you be larger $X for important also Virginia instead road last projects. as of or relocate some mains a we has that's resumed pretty to those major for assembly in We the of take going us bridge Department We're road existing underground those infrastructure either the does. we'd particular, of to will, like if years, have over have X projects. our safer. example. is, bridge And

system but for of terms of reliable. and our also projects, good are those community good So in in terms making the transportation, more safer good again,

us give rate of Tommy, filing. details a recent the case few

Tommy Oliver

All you, Paul, everybody. thank and right. morning, Well, good

Slide on are We XX.

X. interim in As we an Commission increase December on XXXX. basis in are recovered of now last our the rates quarter, file approximately $X.XXX put SAVE collecting into for which Since with through rates, an SAVE effective we the Rider requested We did of increase rate of nongas call million, Virginia mentioned terminate a costs our rates those approximately in associated base is earnings from did X, the SAVE. plan We interim on million being January our we company through effect $X.XX with XXXX. January

costs we Paul rates. renewals, to those through base on be our As recovered continue will mentioned, but spend

below October year nongas increasing The declining approval result rates to these new average plan gas for rates We gas X. X. currently prices will incorporating on We lower our the prompt again, for in January X, this increase month. $X.XX. natural been be started per Since filing are in have later early in gas decatherm rates costs bill base winter, February customers commodity residential a become and of for monthly effective $X.XX by SAVE the will and

approximately a As customers their experiencing of these are adjustments, an result XX%. decrease these now overall of bill changes in or

capital the of out coming rate total $XXX of year $XX case be approximately net rate SAVE our will million, our spend of With roll-in base the million. approximately

fiscal earnings outlook for our remainder discuss now will year. of Paul the the

Paul Nester

nongas a XXXX, commission a reminder, XXXX. in a you, October Thank January base filed or in just as ordered rate Tommy. rate which nongas -- for we And of increase the final of last base

rate about So we've X case. last been since years [indiscernible] the

and XX, impairment noncash our Slide for for loss in changed on adjusted earlier, We're quarter we fiscal the Jason is from And recorded XXXX, midstream reminder, as fiscal the again, Okay. as a the XXXX. last subsidiary. EPS haven't mentioned guidance

we $X.XX of exist in due interest in the Mountain rate loss increased Pipeline. a higher lack from projecting midstream operating to the presently environment we XXXX, interest are greatly Valley all and the to that have which For share costs, subsidiary, income per offsetting due primarily the

certainly the hopefully note the and per the agencies working to to reissued Just economic equity another offering have $X.XX on venture needed Roanoke is as that with is approximates XXXX so can track share. from solid very as update, to an general the of presently tell dilution resume in can other outcome our probably rate would the the have effect case update, you MVP factors. from joint like future. We March near that Gas, respective construction permits pending the year,

greater project. gas update continue the move end We'd what's stories this our will it service, give Tommy, an project ultimate completion we but and renewable really of great toward in on probably natural the like company, what's probably of history as one get us with facility to and with conclude happening to

Tommy Oliver

it start expect has well Paul. go return in RNG to designed operating on approval project, XX, working did March through year. cost a be and largely administrative to receive investment. now, on with place fruition. service that Construction on talking the on facility in about well. March recover approval recovery billing the will project been separate commission everything have X. and on We're rates for We tariff to and finally the and and we we've the million the Sure, to associated maintaining approval as progressing the of come this budget, Slide will for project $X.X time project of Rates the some the in the and into been We're expect cost as we as time and January and for Rider of has a

this Gas in on emissions the combination local outcome, reducing rare profit quote their years, and working been Roanoke lowering to greenhouse pleased and commission's believe very we've rates. potential I increasing are project for with utilities company, has a commission the well. the the And achieve the about fuel stated, order project a summarizes customers' As also gas of X we supply, the while order project increasing and from

And I'll now. turn Paul it over back to

Paul Nester

the the fact, is the we the utility, of state the and Tommy. East Thank the such really to and project and there Coast the supported of a in gas first on in other folks but that research, It finite is, Commission. company Yes. by possibly, Tommy It Virginia of State Virginia credit in United done application process with haven't the Corporation States. approval you, his the team

So what means it that the to order, our company community. proud of and very and receiving

the on switch project and XX XX partner partner Tommy so look project, days. and a we're job, to here Our Authority, about Virginia on in a turning to forward done to Water has the pleased the have the Western them as fantastic on

Paul Nester

That Instructions]. you remarks. [Operator are concludes How our today? prepared

Unidentified Analyst

I'm seasonably warm.

Paul Nester

continued Virginia. XXX Florida than very the now, warmer North with one Southwest Today, And it's heating January -- been record. but like on trend. more of warm days January here. the for approximately, January feels it that books what, degree in Well, in warmest February fact, we're Jason, January normal, closing was here

-- these just days, be but not they're construction We in best days. good the weather. to are the Mike, all So not gas try

Unidentified Analyst

couple time on I question of one, get which like past facility. a had just wondering, only is R&D you lot really that one was, this once the I'm a spend you anything weeks anything of at footprint terms else in might renewable RNG, see? geographic looking you're is but not in in of doing out your projects there general, you away, just else

Paul Nester

a contacted been at we've by of the that in organizations couple are RNG Mike, looking projects area.

all pipes Some just We're the to that we're we to into decision. want that based Others them, on economics them. evaluating to run make and us inject have system. make once and want to decision talking our interconnect to a

Unidentified Analyst

in have some I solar any it mountainous does make know you a -- given of the sense? Okay. in you're very benefit it, region for parts and there Does

Paul Nester

Yes.

been this region. the big say there's years, primarily So electrics last, some some site, in of to move, facilities would in course, I by X Mike, solar the

And you're piece area your appropriate ground fairly so precious right, there of the -- of But you ground to due an probably are southernly in if facing, point terrain. find that's sense. can pieces our make it those mountainous to

time this those We and put our back of it's a Tommy's headquarters project, options. have that of the now solar RNG to spent XXXX. going moment a building opportunity into ago lot not in that time we give looking here some explore solar we're on other of good facility some out to But since coming us comment

Unidentified Analyst

had. Yes, all it pretty Okay. I for hope much turns I colder that's you.

Paul Nester

having We winter question, press leave. to cold comment add and more officially Well, there's before weather little I'd this. mind one thank your you. only a more to wouldn't solar

this our Mountain se, other cited. this are Valley by are But area proposed stiff provider So and have get and projects to electric opinion. is facing and the with projects, solar permitted opposition not, to that like the in infrastructure we've per seen being impossible Almost cited. them permitted my

natural even was and the need United in but not percolating reform for back infrastructure. that that. renewable infrastructure, fall in there's Pipeline So of still States Valley permitting It's XXXX, Congress to just the for a other Mountain gas the

Unidentified Analyst

that be great in It'd get on back field. see best the Valley. to you actually wish I them Well, the

Paul Nester

also And and the of way to to complete timely importance large. get we desire, a be no along. of thing, everything country Yes, doing project there's And the this and can push we're that right responsible environmental I our is, that's and question most too. of our to able to in at restored advocate fashion utmost to region help so the think,

Operator

for you Thank today. [Operator you, any Mike. have Do questions? other Thank being us we Instructions]. with

like earnings Well, and have Thank forward quarter would other you. any our call. And May again certainly it this to doesn't to like hope look us. a discuss our have first thank We you with again look being We safe to being you in results. pleasant quarter concludes we today. weekend. We with you questions for second certainly

RGC Resources (RGCO) 10 Feb 232023 Q1 Earnings call transcript