RGCO - Earnings call transcript Q1 2025

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Lawrence Oliver

Good morning, and thank you for joining us as we discuss RGC Resources' 2025 First Quarter Results. I am Tommy Oliver, Senior Vice President, Regulatory and External Affairs for RGC Resources, Inc. I am joined this morning by Paul Nester, our President and CEO; and Tim Mulvaney, our VP, Treasurer and Chief Financial Officer.

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

First, we've muted all lines and ask to all participants remain muted. today's page available www.rgcresources.com. of to and the link Information Financial our the presentation on is Investor Two, website at lastly, of we conclusion at and And remarks, our the will presentation questions. take the

Slide to has filings. that our X should risks projections. about understood in turning contains the forecasts X. So information forward-looking including public and uncertainty, and be Slide presentation statements of This context

Slide X contains our agenda.

XXXX first fiscal discuss our operational financial quarter presentation, of our the our we will During year. highlights and for

then questions will for rest end. We our review the with of outlook year fiscal time the at XXXX allotted for the

So services. let's We year. to X. is new XXX This strong. and the installed quarter first renewal Main extensions miles turn compared in quarter fiscal to the activity XXXX were in of Slide the fiscal services X.X new XXXX first XXX of main and connected

continued We to our fiscal renewed is evidence In the of addition, customers. during our XXXX in quarter we our reliability believe for this safety first and investment XX our year. services of enhance system

ability XXXX. gas. Slide natural increased its fuel fiscal commercial gas the up one volumes the were volumes transportation Total XXXX were to as and volumes with quarter XX% consumption delivered of compared customer well increase the heating Residential quarter degree of to X X quarter. small in X% XX% up to due days compared the as for switch first shows our of to

strong a mains million Good on to services. X.X% the for up Slide year Total X current shows CapEx $X.X period quarter and of quarter the weather the XXXX the for in ago. same enabled most over XXXX. fiscal progress first spending was of compared year,

it Mulvaney, results to over turn our Tim? quarter. our now financial CFO, Tim will I for the review to

Timothy Mulvaney

Thank Tommy. you,

ago good higher expense. our into equity of increased which Net affiliate a and $X.X million July, with Moving gas this compared same to year to earnings per million net pretax, the due rates, interest income $X.XX or share effect in compared of year in share. unconsolidated a had MVP's which and lower earnings was quarter reflects of Roanoke from the per quarter million $X.X went higher affiliates or quarter to $X.XX margins $XXX,XXX X. unconsolidated ago. of past We to $X a our share results Slide same overcoming Equity income

quarters. the share of during persist to entirely This the will was the in phase the comparison more pipeline. to results XXXX compared reflected fiscal AFUDC Our operation the apples-to-orange construction current year, due of X for which

approximately received from on first last expense average we rates As higher distribution. We Interest $XXX,XXX quarterly distribution we quarter a noted MVP midstream to cash the refinanced October. due on our recently the credit call, the ago. our year was and the of $XXX,XXX received compared in Roanoke of on to balance line a was Gas higher year ago interest which debt, same next higher

at line note, a final portion RGC million related of million current to due to Midstream. As $XX a long-term is XX, December $XX.X XXXX, debt nonrevolving our primarily the

conversations have Those positive, note expect XX, We this have have to been maturity XXXX. refinanced December its others. our to lenders we with already and conversation on and initiated fully prior

of renew expect month. line fully to Roanoke credit Gas next also We our

our comments growth, EPS. expectations Paul will XXXX, for regarding share including our capital and

questions. We will your then take

Paul I to Nester. Paul? RGC's CEO, will now the pass presentation

Paul Nester

today. a snowy wintry Thank Southwest you, here good and Tim, Virginia morning morning, in It's everyone.

to continued and some the quarter. statistics of forward the related other exciting volume in We'll but month cold have through quarter, an quarter As reviewed, had month and ended talk look the January. this excellent warm, about to and we Tommy very January off we and a very second sharing and in minute, cold be have delivery fact, first in started Tim first to

Tommy quarter, fuel our strong has allow and be understanding first growth incredible second But mentioned but breaking third that of continue been either have course, switch, fiscal steady again, new ground ability moving certainly extension growth connections. Housing does have that, transportation going it's And on customer and near quarter. region. have will the maybe to term, new That's gas to large the in ultimately quarter the the customer construction fiscal and, volume in customer to that had who to to planning natural back or use in continue our year-over-year. from even the neighborhoods service new main There looking to to stage. us continue

year-end We the Franklin last talked are County. the working a days. capital really winter been forecast expanding fast still in due couple Certainly, just ago. more come That's the over to on about there, just into season, to of the expect and we not our see out that on winter call we progress weather we'll XX We start into construction as minute. to months that and have in of a

are forecast, the Speaking we Slide capital on of X.

if be million at capital fiscal towards Our total December. and XXXX. the year the to $XX.X $XX of But end the some the range for We million remains we're capital just as between we will, as of think announced in categories we you mix, change conditions million, still fiscal that may adjust in going to year. $XX.X again, to spending we

Moving Slide on X. to

and to provided is things been press, all just popular detail, as that's us a pause recent in in of following economically. happy causing what we're uncertainty up and administration, quarter, some change some this on as There means economic is The some few expected, we've with the size we Tim the that. presidential as of about in today first certainly to great

it right taken certainly being interest the or an in appears that is may Reserve actions its cautious the of Federal inflationary a rates. some attitude now effect, have to wait-and-see regard Certainly, has with and approach

us hopefully to of come and back fiscal potential in look X think have some rate if be helped cost inflationary last we position back-to-back over a XXXX. pressure years, that's company to and in So addressed you through this the as back or a inflationary pressures cases, manage

XXXX. maybe remind timing those the of about impact Tommy, cases they the on rate fiscal and the call how

Lawrence Oliver

you before signed that, do the staff an on our maybe Yesterday, reached October. give rate case. I But hearing stipulation back our of in to adoption Paul. we Sure, recommended rate with examiner case the update

the last process now step issue full the order. So for the in final is commission to a

adjustments as projections revenue XXXX. it far requirement based $X.XX June lot through as future of call as into timing unlike Virginia. test Virginia base increase to forecasted our year period. forward-looking XX, the a of That a a rate But goes, year case, a In revenues, we uses on expenses stipulated rate or is are in means million states,

So inflationary are we captured stipulated believe the is a of experienced lot in those we and experience pressure continuing rates. to

Paul Nester

about we as slowly Yes. That's really, Thank that approaching you, complete. halfway we're the helpful year. fiscal really current Tommy. being again, think

with when out the So still Certainly, of the X, $X.XX heating range, we year. comfortable on bulk the at Slide winter $X.XX quarter point have look our per finer and range should this season, share for the to we time. point on we're earnings EPS the in at second of that forecast come a as again, we

you over It customers, years, XX our before of thanking the our certainly to we like in again if will. our been take employees our magnificently. particularly part system month just hasn't cold cold yet event, would even this fantastic January, over and performed remarks Virginia close this in and in historically questions. I my of

as have preparation of And a very, and and didn't about about We takes lot fact. a very, coordination that, we're customer very and single a that of lot it of outage kind. work a proud happy but any of matter

relates it we've paid Tommy spending cold reliable, been Tim to in as our And events. system efforts have modernize it has that and our these talked our weather as and make to safe and about improve and off renewal capital and

area still shareholders. be support. the continue uncertainty can interest our opportunities and even seems region. some how footing, encouraged we're in you to real. about and for solid the just global a we're those about are Those the benefit and opportunities thank But at again, So level. the a and here We be of on growth excited this Again, Roanoke and national good to your

That does Instructions] remarks. our wait We'll prepared one second. conclude [Operator just

call. today, time conclude speaking taking a quarter to look to you and great Well, XXXX have be second certainly day we May this and you, hearing forward for earnings with again you in us, no questions join discuss Okay. does and quarter safe. Thank Thank to first the results.

RGC Resources (RGCO) 11 Feb 252025 Q1 Earnings call transcript