RGCO - Earnings call transcript Q2 2024

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Lawrence Oliver

Good morning, and thank you for joining us as we discuss RGC Resources, Inc.'s 2024 Second Quarter Results. I am Tommy Oliver, Senior Vice President, Regulatory and External Affairs for RGC Resources. I am joined this morning by Paul Nester, President and CEO of RGC Resources; and Tim Mulvaney, our Treasurer and CFO.

Before we get started, I wanted to review a few administrative items. [Operator Instructions] The link to today's presentation is available on Investor and Financial Information page on our website at www.rgcresources.com.

the our of take we conclusion questions. the presentation remarks, and will At

on presentation and X. projections let's public understood Slide So start of context This statements should X our information in the forward-looking -- has aims about including risks uncertainty, filings. that be Slide and forecast

Slide contains X agenda. our

XXXX rate for for our MVP and the at quarterly review results, the will and year and financial allotted provide the case outlook with an the end. We operational update questions full fiscal on time our discuss

to of same we Slide the of our the reflects XXX connected steady X. the Turning for period. Total billed during and months within April our XXXX new at services customers fiscal growth historic end extensions X This footprint. year Main were totaled that XX,XXX. first miles, continued X.X

the volumes weather shows were higher X% enhanced attributable levels. to up overall X delivered more It are natural historic volumes Slide the volumes prices days. our in the were second fiscal heating to quarter. Volumes increase degree total. result second was were for of last XXXX commercial as gas quarter, colder a higher year. year's Gas compared gas a industrial throughput of year-over-year at in as Residential by in quarter and

same XXXX fewer despite heating Slide year-to-date. Total for of fiscal the the charts X volumes shows for the degree two half were up first modestly days.

lower. the were in gas volumes As quarter, delivered

X. on are we Slide Now

facility, to for current million million by XXXX spending time. year in the totaled same the to spending at for Our CapEx attributable the year MVP related ] decrease to spent of first $XX.X million last $X.X is interconnections. RNG XXXX This compared months offset the [ $XX.X X fiscal the

And overall our will $X.X spend spending Paul comparable spend, discuss spending. period million over RNG projection up full shortly. the last capital fiscal year's year's the is Excluding capital

turn and discuss financial Treasurer going CFO, it Tim to I'm our now results. who will to Tim? And over Mulvaney, our

Timothy Mulvaney

on inflationary Slide a to steady moving Tommy. you, X. quarter had against headwinds. We're Thank We

in $XXX,XXX Second of quarter quarter decreased operating compared -- income XXXX. million the quarter or XX% to to the second $X.X approximately second

across We costs. continue in cost but to particularly experience personnel the and board, pressures IT-related

this expect filed taking X. effect the case, rates the under to with quarter third second We rate pressure July February in continue

will due environment, goes case the ultimately the the more as the which earnings is as as unconsolidated construction shortly. $XXX,XXX sections MVP. Tommy higher interest noncash Interest Equity which million our completed line of detail floating resulted discuss debt, taper was well investment credit. will rate increased in rate and cease is This from rate as Valley pipeline Pipeline pretax impacting expense to Gas supports Mountain investment the in various $X.X our in our in into AFUDC, of affiliates Roanoke AFUDC service. which to the on off

share $X.X income the same diluted quarter more net is the the per second of quarter year also ago. the in $X.XX quarter year-to-date are compared the a The diluted MVP the year a AFUDC was presence strong $X.X was Our of year drove ago. this from in second this million million compared results. The year similar EPS favorable. The of while X. numbers the quarter per Slide $X.XX the in share this second story, for quarter to to year on to

in pressures fiscal quarter inflationary in million months diluted $X.XX of fiscal share of fiscal Net X The 'XX. and or income higher rates interest second present as diluted through per or compared the was XXXX. $XX.X $X.XX million share they $X.X XXXX were per were to

maturities new to sheet. An that Friday. investment we coming million in XXXX. note nearly case on XX-Q debt pieces MVP at prior for the additional in the year filed and from Revenues We related only balance the present $XX for The we 'XX, months supporting fiscal X all were details XXXX months rate the XXXX Form but fiscal of in 'XX. X in due are that in of our in end our with refinanced in two had

line credit renewed at Gas of our in March. Roanoke Finally, operating we

turn our latest discuss presentation now the case. to back Tommy will I to Tommy? rate

Lawrence Oliver

Rental Tim. discussed increase with increase Virginia million experience base you, or our in conditions. in X, an a rate which rate gas, seeking most consumers total increase call, a base Thank current XXXX, earnings $XX.XX continue rates prior are increase like to Accordingly, and June pressure. authorized ROE ], of in businesses an reflects our we as X% filed The Commission we and which Corporation State [ general revenues. expense in about the $X.X upward market projected approximately February we to a through in includes case XX, capital on

The for subject not second ROE, staff facility point our include rate X-year received the not with statute X. SAVE roll-in of not hearing XXX facility The underway has plan we to this until review the a adder authority refund. We to new final rates authorized July expect Since to base a commission be revenues in or go into the do and quarter SEC had incremental RNG XXXX. basis for a Capital past RNG rates. the the as to effect ever for the RNG we expect commission new resolution and is do November our rolled October. million of case into by $X.X set The is revenue does qualifies X SAVE of

RGC to discuss Nester, pass will now presentation MVP. to Resources Paul the I of CEO President and the

Paul Nester

Thank morning. Good Tommy. you,

what soon FERC recently XX, XXXX Valley Mountain we We are the commercial operations requested and MVP the May are at Slide date. excited of operation The filed on We with to Pipeline. progress for truly initiate permission to X. in-service be the about believe and

just weeks So away. X.X

June the schedule hold, first. If shipper the active contract the this pipeline would make for

testing station completion, Franklin and are For is expect that MVP with two station, picture in and Gas, final on moment, nearing Lafayette be we'll The complete, pipeline in see it substantial doing flows when Roanoke a [indiscernible] we a in to the interconnect substantially County ready we'll Gate gas locations, the again. station. just is we down

about the the from week lane to It gate Business and business pleased the to partnering distribution We're is the This Slide just we're very Park, County. just The picture historic View of station. is close thrilled in in community finally moment service picture in this gas is with installing approaching on. and you're Summit customer be Franklin first Park. a seeing a a be natural the something to Summit the to with county history the company of on actually and ago X View pipe the installation really

All right.

Slide to XX. Moving on

we the have we're going at XXXX end where well see, And Let's spending to I in as service. XXX% as you the station, nearing to so to earnings. our with is respect Gas just as it just look think Lafayette of can this it take mentioned happy fantastic, picture capital looks and a our we're

Slide plan course, to Gas ago. as capital capital pressure maintenance The expenditure XXXX just few moments like and up in have and on Moving Tommy have operating steady, been, our is XX. mentioned Roanoke of holding slightly, feeling investment we a Tim and only expenditures,

as our and as lower I the targets just However, than project. spending expansion well growth overspend completion plans hitting to our and RNG the renewal is we're note, on want of customer of our system SAVE because XXXX our there.

we're quarter. and keep operation. first guidance, you in we XX, the with this are the entire to just And right. earnings in All in I On work consolidated from Slide paying safe continue it making safely We our shared haven't to changed investments system want our our to dividends. reliable we what compliment

fiscal higher As so mentioned AFUDC we Tim the in with interim is project that and rates a the results, expected. to the this has just a far the fourth year quarter. driver than year second Tommy in-service and Valley date rate half construction the real begin slight X Obviously, in the Mount influence the been prolonged particular, the described in of slightly little changes from the for that has the case July the

Paul Nester

we with remarks. include Instructions] prepared So can that, [Operator our

Michael Gaugler

on question gas one supply. guess I

Valley there coming step where prices the a you're we've cheap today? starts your system into of mixing Valley in that Mountain big gas pretty prices in, are here down gas supply Mountain levels. looking Now when at Is already gas shortly, got at cost the given

Paul Nester

those Mike. looking demand out of Coming earlier low the prices, natural alluded great gas when gas comments really low and right sense to that's strong, winter, think is at And our the based commercial you're which Henry still question, are now. you're NYMEX prices. Industrial right, Yes, warm Hub on particularly historically a I prices makes the or low. still

of have if Corporation lot it change of Valley's our XX-Q something We or Commission gas see actually the charge you overall small gas basket a just think, rolls our in at, looking Valley How incorporated the we will, a and pricing demand Mountain by to, don't adjustment our through the tidbit, Mike. analyzing approved period, winter is we online, we're I purchased that in coming warmer natural our alluded carefully a more the in State as approved. commission. portfolio regulatory Mountain order which that starting into

Michael Gaugler

kind out to can the Does follow-up. get molecule sense of just other then take And every a make Okay. you it pipes? for of you versus MVP

Paul Nester

good That's question. a

manager they'll as for benefit, is they customers' think do, asset on efficient most which And gas again, we to Mike. day-to-day what cost nominating it So our optimize customer. do supply our natural basis, our an capacity a to for utilize the I always relates the

market on on a hubs So basis. to as basket. are will know, depend how day-to-day pricing conditions relative the pricing our you it And moving

X pricing points basket Tommy, currently. points, I we have think, X our pricing in

Lawrence Oliver

That's right, yes.

Paul Nester

Yes.

Mike a So will that come basis. daily on all together

know full or MVP don't take in they I day East every certain that case, So it's capacity that TransCanada. XXX% single versus, would Tennessee this

forward joining and as you pleasant everyone and we week. as of to with a Instructions] Well, work [Operator safe X much. quarter. third Thank thank none, always, results, you look wishing morning months and hearing about we Monday for quarter reviewing review this our the our very second us being in everyone We rest

RGC Resources (RGCO) 6 May 242024 Q2 Earnings call transcript