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RGC Resources, Inc. Reports First Quarter Earnings

ROANOKE, Va., Feb. 05, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $5,019,992, or $0.50 per share, for the first quarter ended December 31, 2023, compared to $3,256,405, or $0.33 per share, for the fiscal quarter ended December 31, 2022. The increase over the quarter a year ago included nearly $1.5 million in earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”) as well as improved utility margins.

Roanoke Gas continued to make investments in utility infrastructure to improve system reliability and deliver gas to new customers to drive earnings. CEO Paul Nester stated, “Higher utility margins were welcomed in the quarter particularly in light of inflationary pressures that will temper performance in the coming quarters. Good weather enabling strong construction progress of the MVP during the quarter was gratifying, and we eagerly await for the completion of the pipeline.” Nester further commented, “Roanoke Gas is experiencing increasing costs and has filed for relief through a rate application with the State Corporation Commission.”

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.

Utility margins is a non-GAAP measure defined as utility revenues less cost of gas. Management considers this non-GAAP measure to provide useful information to both management and investors for purpose of such comparability and in evaluating operating performance, but it should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for, or superior to, GAAP results.

The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company’s actual results and experience to differ materially from any expectations expressed in the Company’s forward-looking statements, regarding inflation, customer growth, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, geopolitical considerations, expectations regarding the MVP construction and operation, and regulatory and legal challenges along with risks included under Item 1-A in the Company’s fiscal 2023 Form 10-K. Forward-looking statements reflect the Company’s current expectations only as of the date they are made. The Company assumes no duty to update these statements should expectations change or actual results differ from current expectations except as required by applicable laws and regulations.

Past performance is not necessarily a predictor of future results.

Summary financial statements for the first quarter are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
    Three Months Ended
    December 31,
      2023       2022  
Operating revenues   $ 24,419,352     $ 33,282,335  
Operating expenses     17,767,315       27,737,850  
Operating income     6,652,037       5,544,485  
Equity in earnings of unconsolidated affiliate     1,467,835       1,232  
Other income, net     120,786       74,606  
Interest expense     1,636,273       1,369,164  
Income before income taxes     6,604,385       4,251,159  
Income tax expense     1,584,393       994,754  
Net income   $ 5,019,992     $ 3,256,405  
Net earnings per share of common stock:        
Basic   $ 0.50     $ 0.33  
Diluted   $ 0.50     $ 0.33  
Cash dividends per common share $ 0.2000     $ 0.1975  
Weighted average number of common shares outstanding:    
Basic     10,029,243       9,830,206  
Diluted     10,031,354       9,837,188  
Condensed Consolidated Balance Sheets
    December 31,
Assets     2023       2022  
Current assets   $ 34,769,875     $ 47,845,073  
Utility property, net     250,343,833       234,849,715  
Other non-current assets     29,589,527       25,257,374  
Total Assets   $ 314,703,235     $ 307,952,162  
Liabilities and Stockholders' Equity      
Current liabilities   $ 64,196,722     $ 60,164,437  
Long-term debt, net     102,461,196       113,288,995  
Deferred credits and other non-current liabilities   44,500,714       39,608,723  
Total Liabilities     211,158,632       213,062,155  
Stockholders' Equity     103,544,603       94,890,007  
Total Liabilities and Stockholders' Equity $ 314,703,235     $ 307,952,162  

Contact:   Timothy J. Mulvaney
    Vice President, Treasurer and CFO
Telephone:   (540) 777-3997