RGCO - Earnings call 4 2023 | RGC Resources, Inc.

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Lawrence Oliver

Good morning. I am Tommy Oliver, Senior Vice President, Regulatory and External Affairs for RGC Resources, Inc. Thank you for joining us this morning as we discuss RGC Resources 2023 Fourth Quarter and Full Year Results. I am joined this morning by Paul Nester, President and CEO of RGC Resources; and Tim Mulvaney, our Interim Chief Financial Officer and Treasurer.

Before we get started, I want to review a few administrative items. link Financial presentation website Information the the available at Second, and Investor page Instructions] to is today's on www.rgcresources.com. [Operator of our our questions. at we lastly, the of presentation And conclusion will and take the remarks,

X So Slide contains understood statements about on presentation The X, in forward-looking X. the and including should our Slide has public agenda projections. uncertainty, filings. forecasts risks that information and this Slide be context of is

the outlook We end. financial discuss will review results allotted time annual quarterly the fiscal and operational for for our and at with XXXX and questions

turning So to Slide X.

customers. complexes. renewed authority our residents customer to of communities the and Our rate operational did safer renew straight those housing to X the add also main within assumed reliable new modernize Roanoke seventh it properties system. more have of Housing the highlight provided extensions Redevelopment and totaled this gas have like for outstanding helped we growth base, the new control. additional customer and year Not the a and year XXX these of After its count housing facilities ownership added in with to Gas customers, year within I'd another the facilities, we we Roanoke only new natural work Authority. over adding our gas miles, done authority XXXX, apartment at The the and authority Since X and intends X XXX coming least the years.

customer XXXX spring XXXX the [ active occurred count doesn't the the count of moratorium a side disconnection reflect the during the by steady December the customer end as end, disconnect our X customer for weather was state-mandated and To true as really increase of figure At in XX,XXX customer and The This customer customer XXXX. XX,XXX. ] service fiscal some right XXXX. total represents impacted XXXX during reconnect sits service was in. that and once that graph, total our parts customers were since On of growth count customers. cold our XXXX, count of

busy over X, Transition Slide on was the front. year XXXX regulatory to a

discussed we've January base of facility. an began operational, March Corporation and rate the call, State This in we As prior billing in customers received to facility from RNG Commission this approval became earnings we year. in

for million began We also approved with Plan The life by October plan Plan. billing The new We commission over the allowed the August. a SAVE new in $XX XXXX. X-year was SAVE XXXX. the filed spending for of the fiscal plan included SAVE rate cap million $X.XX a X,

SEC. a a issued the a hearing staff in examiner its year, report We all During terms settlement accepting million. The of way of September, working we in reach increase had through requirement to agreed past we and the with the and revenue the essentially case stipulated the November $X.XX the which also to his other SEC rate in case assigned stipulation. revenue conditions requirement did

the final XX order commission from XX in next days. We to expect the the

certificate -- within our for sunset certificate our have the The issued of we to XXXX The of February serve in provision I'm begun had of original February Lastly, extension XXXX. years serving not XXXX would extended X-year voided for Franklin X-year we a received an which provision, contained customers the commission window. County. sunset sorry, certificate that X

higher to gas shows were X our attributable usage. which last Slide compared volumes, year, industrial delivered higher to

volumes increase. Residential gas a as and of X shows fewer small were degree were commercial volumes utilization year-over-year for slightly. the Slide heating down by fiscal days, down result year, offset industrial

for of A capital plan XXXX is our ago. related case utility discuss worth our significant million down rates to nominally this a to noting X. earlier. plants, in is Roanoke I'm Slide Tim I and our RNG discussed result with investment Gas $XX investment who a interim as from facility on which in it's current year the financial year capital over it of the to part CFO We're Treasurer, executed of We that Mulvaney, and embedded rate our our now results. the will over going the Tim? fully turn And RNG rider. investment

Timothy Mulvaney

Thank you, Tommy.

We X Slide are on now.

on or income which compared The floating driven Valley our fourth interim the Interest to supporting was in be up investment $XXX,XXX due expense continues the rates rate primarily to January XX% increase pressured quarter environment, debt, fourth quarter, For the interest is operating rate of base increased $XXX,XXX to Mountain XXXX. Pipeline. the $XXX,XXX impacting implemented by X. to higher the

resulted million net pretax MVP the resuming quarter in of from compared million million loss investment for due taken fourth $XX last in to in just the this income year $XX an the a to impairment investment construction. pretax, $X year. MVP AFUDC on which was Our The of $X.X our our quarter noncash over million fourth quarter included

XXXX, an the on aid will Slide Moving on Slide X. outlook basis results, an year now on I MVP to the Nester, our to in on on excluding To Resources investment comparison and XXXX. over turn President and of quarter represented CEO, RGC have Paul results our fiscal financial Paul? presentation our we underlying in for recorded the impairments the year X. for

Paul Nester

morning. and Tim, you, good Thank

and spending Slide provide Valley to Mountain the going then guidance earnings minutes on update an for a also initial our our review we'll to take we're few to share. forecast, XX. try Pipeline, and are Gas on We XXXX Roanoke going share XXXX We're per capital

invested customers plan XXXX. approximately total million. the XXXX down spend to capital is an normal And all-time turned shared Tommy few personnel us spending that of over growth from X. the ago. XX. experience customer take Slide for we We're annual This that like our $XX getting in capital due comment utility. well year I for on this October company. would of primarily a XX,XXX the to in in certainly one a operations for to certainly level want $X.X with numbers moments spending and fiscal just million resumption is on Moving customers of XXXX the and on is high a RNG our facility And utility more a our since on to X,XXX particular, I minute the customer thank the projecting But in

a work For a dedication noteworthy ours, hard to small many company it's achievement a and folks. due like lot of by

you. thank So

Of a may construction. a last good seen on Many statistics Moving where We'll XXX on remaining of some filed when Equitrans update. X-K was work this Valley resumed XX% interpret to XX% update the try Slide the to scope that XX. upland over you It's have of provided pipe, crossing have week little hydrostatic they tie-in, summer, XX% construction the of an approximately testing -- bit you. Mountain of miles approximately of occurred. of that of or the and the related for the to

very progress the again, been has So good.

had and Gas has project fall Roanoke that here, Summit XXXX. both with $X.X a of projected We've completion The in on nice I billion quarter mention resumed been dry budget first construction View for the to conducive to the Lafayette like which has progress. and our interconnects. also construction remains total good would calendar

excited County's in the both much-needed in really of be Mountain track natural be has Gas the the region, the X completed, to construction first the County, we're remember that at Franklin stations flow to and opportunity this about on bring gas. gas may and Basin be Business Franklin to natural natural with Valley. Valley complete, finally Roanoke taps which Summit flowing including We're the Roanoke excited supply for will in the Valley into being You for Park to We're Mountain Utica Marcellus Mountain off Mountain Valley commensurate completed gas really Valley gas. see having View

calendar MVP believe be that right track, of quarter first to now. studies XXXX, are on and schedule Summing the case the we

an that We expect Midstream breakeven earnings RGC a fiscal have to standpoint. essentially subsidiary from our XXXX

employees outstanding earnings Moving details guidance. an would Again, on share with XXXX. our and XXXX. for tremendous again, past of thank And XX our to this our a of Friday, our many provides we had customers the year. just We to filed it XX-K I Slide like per

earnings you year. that. we we were still the very is you. were Thank is Gas calls, achieve of have inflationary do mentioned went that hard did lot to do earnings these real, to on interest That a expect Roanoke Roanoke believe solid pressures in to another If Tim and expect XXXX, utility. share. XXXX, XXXX through and hit going we environment. to we the rate rising able challenge work, per through we $X.XX as not But Gas

Our range, concludes $X.XX Midstream. Instructions]. the to can we our now, RGC $X.XX, a see, we as you with That [Operator be think breakeven hopefully in again remarks. right prepared can

Michael Gaugler

quarter? some getting You're weather good this

Paul Nester

care been it's heating will, great weather. again, not dry, for, It's weather. happy weather, incredible you you that ordinarily had about been great been but It's which, year. this but if don't we're load a construction We've very

Michael Gaugler

Okay.

and Franklin tie-in Park the there. mentioned County the had You Business

I think was toured that's the we last time what down. I

wondering, County any Is there anybody the waiting are Franklin Just for in tenants? there gas?

Paul Nester

development can't Michael. is we a excitement, So but opportunities economic potential on standpoint, from an of specific and comment there lot very

meeting in some there matters. of and to down the of Tommy fact, In discuss folks these County this Jim Shockley afternoon are Franklin some with

again, is park lot wonderful gas So a be [indiscernible] there's we'll about that in excited a opportunity. natural

Michael Gaugler

just flow I will would reduce Okay. Valley then cash to Mountain we'll say, used earnings from -- from that And assume be debt?

Paul Nester

like bit we comment cash about in think that to XX-K. to little Yes. you on Tim, I flow talked Michael. Would a the

Timothy Mulvaney

will the agreements certain we company, working So Valley does due signed are to term. XXXX, flow to Mountain as they on Valley in agreement those. begin that the the pass flow, and But we there the to to provisions would that in our short as with we're use expect are of Mountain excess in banks and pieces have pipeline in debts that those we coming replace cash

Michael Gaugler

if Okay. And a Any month -- Paul, actually idea into what could seeing to of last flow gas start you question. that had you guess, Roanoke? then take some

Paul Nester

Yes.

they JV, from guidance gotten haven't first still and precise public the think that. Michael, calendar than more quarter, is the I

day on and a winter point. construction lot month weeks over of know, you field time in with at the other in as we And are the to ability depend a course, of coming not it, As shorter do there's this a days. days the words, or some does

first So operationally and for XXXX. planning are we quarter planning still

we'll receive if X, that's March ready; gas. ready that Gas will Roanoke be as to that XX, be hypothetically, if we were So March

Michael Gaugler

flowing if you lower wondering just could most. that when or was I need it be cost January the And gas in Okay. February

Paul Nester

wonderful, plans January time. at it's not be great physically know That would in this that, a We're point Yes, for possible. question. but maybe we don't making that

Timothy Mulvaney

next Well, Okay. X-K. we'll wait for guess Equitrans the I

Paul Nester

a Yes. we other any few have seconds Any coming questions in that again, just That's other like That a will Instructions] to Yes. We'll question. Yes. someone here. the can Do case be from But see from ask [Operator we would in news. it pause the regard. hopefully informational questions? good for audience.

Okay. no XXXX if We Well, you of and fiscal us, does are to your conclude earnings quarter first again Year. for a speaking much Thank Thank there wish and today. XXXX. the so This a call. year Merry our joining more with families New happy review February look you you Christmas to you. forward quarter certainly in we and fourth questions and

RGC Resources (RGCO) 4 Dec 232023 Q4 Earnings call transcript