Earnings call transcript Q3 2023

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Tommy Oliver

Good morning. Thank you for joining us as we discuss RGC Resources' 2023 Third Quarter Results. I am Tommy Oliver, Senior Vice President of Regulatory and External Affairs for RGC Resources, Inc. I am joined this morning by Paul Nester, President and CEO of RGC Resources; and Kelsie Davenport, our Director of Finance.

Before we get started, I want to review a few administrative items.

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

to transition And one. contains over this all and projections. So, that presentation slide let's note forecasts

slide the statement forward-looking So, disclaimer. one is

outlook of and On will review we XXXX, to the financial and allotted at during results presentation, for slide remainder two, the agenda; which for discuss time with end. the quarterly fiscal contains operational the our questions our

for Over we year through the to have slide really construction three, our months which the nine added, first experienced totaled main reflective and we the extensions Roanoke miles, we've XXX the fiscal and year. great the weather added X.X customers is of of have have in area,

on the since total of counts graph slide customer in XXXX. the Our increase a customers represent right-side steady in the

be that parts and got of You've during experiencing collections for XXXX. state-mandated impacted XXXX occurred largely by have XXXX were and XXXX which we pre-pandemic Overall, resembles mindful disconnection that collection are and the results. our to service moratoriums improved, customer activity counts

for time debt the approximately bad than is this expense Our less last $XXX,XXX year. nine-months

XXXX. last lower in which third to year. degree So, largely resulted lower of total than to days of volumes, due compared which we're last were of lower, X% to on gas Heating four, delivered volumes shows quarter quarter third year slide X% our which were delivery warmer compared weather

volumes also fewer commercial lower, last year-to-date the volumes the X% again, due Slide lower heating current to were first industrial than five, fiscal are of And months days. and degree gas for largely nine year. year,

results. CEO to turn Paul discuss to of financial our it and going now Resources, who I'm will RGC President Nester, over

Paul Nester

morning thanks Tommy, to today. you, good and joining for us Thank everyone and

We six. are on slide

project, increase $XXX,XXX the or by was $X,XXX,XXX. quarter in of income operating This that base RNG investment this six, addition little rising over to the under bit We're rates implemented, Pipeline improvement X.X% X, XXXX, interest third (ph) AFUDC. to our on the to pressure slide we to obviously expense Mountain the in interim in January Valley due presentation. is The an third interest rate talk to primarily and One Valley note about our quarter Mountain increased thing a later on [isn't] driven going environment. the

have to a subject still our Valley rate rates. rising and We floating supporting it debt Mountain interest investment, is

XXXX. recorded our basis, $XXX,XXX, $XXX,XXX on to financial results, increase construction, the returning income slide approximately The MVP net of underlying XX-month XX% quarter $XX,XXX this did really aid represented in trailing our compared for third XX which seven. on non-cash up impairments an fiscal was include the of AFUDC investment results of trailing the To have on June, for results our of XXXX. to things. we Our we And that reflects two quarter see related in comparison full XXXX, to includes the seven Valley in Mountain $XXX,XXX on slide

nice strategy. growth rate in We're Gas volume all on operation just on We going our Tommy to and our First, it's fronts. main continue and investing our results additions. Tommy excellent organic our execution just the still have those equity the then from Roanoke to in and is earnings deliveries which miles, And facility. covered customer base; minute, non-cash in our is cover strategic change again, technology new emissions in growth. second a piece reducing customer a just Mountain in that Valley investment. earnings And the is a of investment we the had that RNG

capital for our fiscal spending, well XXXX. review as to the going remainder Gas' Tommy capital Roanoke as is year-to-date of spending projection now

Tommy Oliver

eight. And on Thank we're Paul. slide you,

which investment of in the represents plan execute XXXX. made in We XXXX $X.X to we compared The investments and operational. utility increase RNG million Gas capital completed, result primarily property, an is the our $XX.X the increase in facilities Roanoke continue to with to it million make

Turning the of forecast, including capital RGC year, updated provide the provide fiscal for to an XXXX. outlook remainder where for going Roanoke guidance XXXX, Gas' we're as outlook the and to slide guidance review for initial for well Midstream, as provide budget nine,

fiscal So, total additional of for on year. utility million of anticipate for the approximately of approximately year, on for remainder to $XX.X slide a fiscal $X.X XX, we the spending million plant the

Pipeline. than You Valley in quarter the to spending second to the forecast, Gas the anticipated quarter may interconnections higher notice that in the Roanoke amount May, fourth is Mountain due for

I'm now. going Paul it over to to turn

Paul Nester

passage Yes, subsequent thank were issued, full to resume to all Act, at did of the Valley that, end June, the years. the several construction and early Tommy. in project Due that for first Responsibility and June Mountain completed the you, time of Fiscal the in permits

United Fourth issued a early Court to know, MVP's application XX, the stays, all Circuit stays forward the July, States, and you vacate July on construction Supreme As immediately. of couple those but the resumed granted of in

matter. for are the in and swift action grateful We Supreme assistance Court's this

service we on numbers the forecast AFUDC reflect related do projecting So, service XX. 'XX in beginning for be to XXXX. completed still project by slide calendar month, of each and have revised expect partner, the and our see which end July Midstream, in will managing These that concluding as the Equitrans midstream is is pipe result, in to construction, and with XXXX a as we shown MVP

next we going want the on Roanoke on Tommy's believe to resuming now to Gas and the permit Valley. having be those comment I forward construction various been about with the Those interconnections. is delivering gas into months, of look Roanoke the But hold follow-up really have four to delays. those interconnects and our construction and in do service in to we are the completed that project

mind earnings share Gas been you updates a per us Roanoke our with conclude what's Tommy, guidance, we few environment? in on Before would the happening regulatory giving

Tommy Oliver

active front. the fairly we've -- remember been regulatory and as on Paul, Certainly, you've made

on. SAVE We with have proceedings going formal three And plan. the I'll

are January the billing the discontinued in investments investments effective effect And, went base recovering these January we on the rider through X, those recall, into return SAVE SAVE rates the rolled X. We in we XXXX. interim that or may we plan investment the making through were rates. the You

first year, filed quarter quarter about spend. report. its I which, includes recommend second the Commission. fiscal a in SAVE our it July million of -- this we plan Staff with capital plan the five-year new the filed From sorry, -- am $X.XX on which X, And In approval

order this We final September that in case expect year. the in of

X, start will October XXXX. We that billing

This The X, to operational. that And the it went an same of RNG billing at month March the for rate. did initial on rate update proceeding, we XXXX had we we began file I our was a But of XX/XX/XXXX. to past approval rate XXXX effective rider Staff recommended believe our May X, Friday, And that's with August it for update. become that it that fiscal align year. will

well September. So, we as expect [indiscernible] in

sorry, XX perhaps. have either rebuttal is through will we at it are Staff and still a And questions. XXXX. final lot am And of audit asking order after that. progressing October the will scheduled case, and sometime address for a -- filed settlement been rate August I X and of has with order and/or hearing And expecting very final the their a through we testimony we good that's December the And phase. diligent in a

Paul Nester

year. Tommy, of conducted the again we time. just business a Yes, results just long And a has think period again, of outstanding itself utility reflection of area does coming thank you, way the this really that's regulatory over out and the

are so, those And outcomes. we pleased with

operating has as assuming earnings certainly the our than you the for appropriate past. first then, from AFUDC is again But does income again in seen in on change outcome in as joint service, XXXX, particular. So, the forecast XX [indiscernible] And Mountain September. venture range essentially Valley guidance well X, January rate slide we in November–December. think January The little status a on based have reflect the XXXX fiscal in quarter XXXX the the the case wider of maybe so a through that's

We on at utility The today in utility. wonderful. particularly is length doing are track we've as the discussed

great are to if have solid on So, track we another not year.

remarks. With that concludes our that, prepared

Paul Nester

Instructions] [Operator

see has if questions. anyone Okay, we'll a any more seconds few wait just to

Mike Gaugler

everyone. Good morning,

Paul Nester

Okay, like through. head. got Go one it we've sounds coming

Mike Gaugler

Hey, Paul, it's with Gaugler Montgomery Mike Scott. Janney

Paul Nester

you us. Hi, good for Thank How are morning. you? joining

Mike Gaugler

you're I I ask but am how know. I already doing well, sir. doing, think I'd

the one and days quarter. and are or on question developers out? you that any getting the early from realize is commercial positive But now estate look, industrial or Roanoke just I'll it's good about next with developments probably to I inbounds ask in real customers, general, this all Just locating either news gas wondering question, supply just new potential now,

Paul Nester

for the by there actually Mike, Yes, general as economic question six would And XX I what had to And a mean the say, Yes, we question. broadly is would characterize for we've slightly more historically inbound. in inbounds development. good your that, sense, I months. thank last you

certainty been limitations inbounds of the those on of around completion. Mountain has One lack Valley the

both on the will the their ability Valley believe economic arrive. gas with terms bipartisan is by support Supreme Court's we Biden, a development, have and when do So, to decisive very Mountain now feel in completion, recent boost action, and the FRA, President signature Congress pinpoint our that we the we like in the of and certainty and in to giving and in fact quick the

So, it's a great question.

coming maybe come, the think supply. the it's XX-inch that through more even to billion certainly in going pipe, cheapest two the pricing it's be there's I world. again, particularly is gas, inbound with a States, to cubic plentiful low; United to going day. be of The certainty the delivering And feet the

here are very Franklin County. Roanoke economic the Valley, excited front future in about development and So, Greater we the

Mike Gaugler

congrats all had. right, All that's And gentlemen, the decisions. well, I MVP on

Paul Nester

much. Well, thank very you. you Thank

have questions? any we Do other

Instructions] [Operator

Paul Nester

on early you concludes join talk being taking call. we XXXX this earnings none, to great We full point the third again everyone great in to a hearing be with appreciate look fiscal Okay, that results, our safe end at and to to really again, and Mountain forward time Thank to really when in summer. our has quarter Valley and about you precise us, December, We time. week, pulling day, a is very, hopefully their you. very gas the going hope

RGC Resources (RGCO) 7 Aug 232023 Q3 Earnings call transcript