RGC Resources (RGCO) 3 Dec 212021 Q4 Earnings call transcript

You will now be placed into conference.

Good morning. I'm Paul Nestor, President and CEO of RGC Resources. Thank you for taking time on this Friday to join us for our Fourth Quarter and 2021 Fiscal Year Earnings Call. It's a beautiful day here in Roanoke, Virginia, and I hope you are enjoying the same wherever you are.

items. administrative few a First, We've muted muted. all remain asked lines and that participants all After take we completed, the is presentation will questions. our The link and at of Investor on available www. website to today's Financial presentation Information is the page rgcresources.com. started. get let's right All X. Slide

and As our forward-looking disclaimer, this projections. have presentation does statements forecasts

Our on X. call is today's agenda for Slide

and Director CFO, that we today with As operational are we're of and I And Tommy to going highlights. said, our David me our Garcia, failed Finance. our Oliver, review financial to mention

us join again, David each and at Tommy know, all our and you also We'll outlook the through we'll for go As call. questions very XXXX end. take

in number Moving utility XXX, our year, fiscal total XX% of was customer calls. were our added in XXXX. in fourth growth X% gas quarter, fiscal miles been including X.X which increase expansion, XXXX. talking We've the did better in extension Ridge miles the X actual the XXXX. We outstanding about results, another runner X Blue I miles bringing the onto was Slide outstanding previous customers, approximately the Phase results over X, XXX main We than in to the the think year-to-date

shows were We September Slide quarter onto fourth residential of September XXXX. pretty and did XXXX decline volumes X, The good. volume have Moving a warmer a X%. really much

the dekatherm In bad. a fact, is too absolute residential in on change there really X,XXX, X% the was it a But those so XX% was decline days in heating little September. degree wasn't volumes misleading, only

natural XXXX. down Our fuel the fourth customer quarter in overall this primarily in switched to be large industrial continued due that to volumes gas

in previously, this customer coal XXXX. discussed As switched back we've to

industrial large increases. Building both through year. increased stronger, and mix suppliers, that volumes. X talked gas But consumption about industrial are and year-to-date analyze top year-to-date you weighed customers, XXXX. have mentioned out in XX continue which manufacturing, as The we've just products are the our to gone Our we and their top the has consumer really we've those of if on volumes noticeable XX primarily manufacturing and commercial, auto fiscal year-over-year customer a parts customers, up of have

extensions. exclude income our does fourth-quarter The and our customer November, X.X moment Tommy statement. is the went take will completed which or Phase of extension. Moving $X.XX X. this both saw off due timing Blue about discussed where the as outstanding. and statistics projects. project, XXXX, signature XX% minutes projection to roll about budget. XXXX. project ago, key already couple we for few ago just X and $X Slide as than now growth will on which up up a our in a project that get our capital XXXX onto we capital invested at of through a in and us last We lower well middle in million capital this a million, That renewal, walk Carilion is that million quarter. to X of in prior from support Blue weeks We discussed our $X $X dollars is We've those main lot, million, projects XXXX mix. XXXX. fourth we've and Mason project which million did Station Ridge our expansion That of main rider the XXXX, wrapped increase in our actually were just about a SAVE Ridge our Ridge few Blue as We'll million, and see through into We our spending moments calls, year, July, kicked talked related a ended $X.X year the the in fiscal

good you, thank And everybody. morning, Well, Paul.

I review separately start prior presented the quarter year's on fourth are income results going and quarterly fourth segments, results. approximately to quarter Our from X Roanoke Gas. the for income for of higher Gas Operating Roanoke our with consolidated statements Midstream, $X.X and results condensed Utility X. I'm the million to wanted RGC the compared of financial Slide to XXXX operating was And

we calls, had recovery the assets. expenses the As bad a large Those quarter recorded number earnings certain of noted in debt in prior regulatory and fourth namely XXXX. of accelerated we were of

awarded pleased a to also on We in utilities for nonpayment. under specifically that in with designated, to customers ended customers Virginia their the by moratorium it with were These Company I and XXXX. Corporation operating and October, balances. the late the $XXX,XXX in in of the the created might moratorium Commission. ARPA help our moratorium State arrearage the uncertainty funds of report add, noted Virginia used was were our that August end Along funds disconnections We're were

results impacted Our funds. fourth these quarter ARPA XXXX were favorably by

in funds It we regulatory related noting fourth the outside by longer of the earnings the XXXX. XXth, share. accelerated other we XXXX on our these the assets the books reported earnings incurred fact, our no write-down professional services COVID-related that among have COVID with would've In worth expenses we test deferred September the recovery of is lifted quarter to of subject others. as to expenses, related $X.XX deferrals, we ARPA per Absent of sizeful loss and as a funds,

million fourth for earnings earnings per significant continued the I'll were turn $X.X of in fourth midstream. Now, a per its XXXX this XXXX. for to of earnings Valley quarter over and decline, with by equity and quarterly RGC of the Mountain decline the compared quarter quarter-over-quarter. Equity from Despite flat share year-over-year share $X.XX declined Midstream to partnership. loss

attributable increased addition. SAVE to new XXXX growth, related earlier XX% Paul to income and customer main which slide largely fiscal reviewed in operating extensions an year, year-over-year, and revenues our by For the customer

on received bad in in the the Midstream's MVP, million per earnings from debt consolidated a earnings $X.XX the equity in in quarter, fourth Gas offset also earnings Act of a which we investment expense. The year were In strong ARPA Company year, addition Roanoke also resulting dramatically our basis. reduced to of year-over-year on and the fiscal by CARES share in earnings $X.X money recorded impact decline funds the the $XXX,XXX the earlier fiscal

Thank particular, year until of employees We're our the We Company you, know, at $X.XX in But fiscal Last the our really, as financial that was the this our well so customers. the really still there to of range around and in available, was just happy results pandemic outstanding this just early and right. their part time, all have did speaks dedication in XXXX. earnings and with All vaccine, number. year, really uncertainty Tommy. not much we course, XXXX. of

the let's little here. growth and to for continues bit X We'll earnings. got a We'll things about an MVP capital. we really driver at talk you with we've XXXX to capital want start -- Again, Looking hit give our update. on be

the and I conclude continuing. to The extensions the of think see, ESG budget this All plan apprise million, largest right. bit information of it's and per initiatives share a history. we'll then on forecast. appropriate. little some that Tommy with It's is to and we've can our doing earnings give about good think there. our additions going you new We in been of what main capital $XX.X is us is time XXXX. capital as a customer Company's for is momentum our you

million X customers. wrapping in I Phase we've that for and budgeted and think the Blue extensions we almost Phase $X category. budgeted just We've main largest up new started ever already we've in over talked Ridge. X about amount That's

renewed [Indiscernible] customers the $X we to a we're approximates ESG will $X our million Plan, We Beginning a through last XXXX, angle be have last We going All approximately coming an X to XXXX, think public to happy one's in It's our be it's special it investment that to we capital and gate that about that. the make have make SAVE to that. to announcement that Blue hope included and right. be modernized. weeks. and in really the miles then through We're will this all and Ridge. another million We have main project run a on just mile number. our station with forward, that budget. We're in of. got that in and that, That's completed about project. one. called the of of we about and when through area. renewing wonderful, process on hope something renew And an And look to But gate for just really in opportunity is we also this and right, -and-a-half wonderful to in that finally, left going Phase be started again year it's complete X announcement Plan large to to our time a the gate of proceeding stations our proud and X shareholders get we'll our Company this SAVE this it's stations

Let's few talk Mountain wrapped from Valley Valley up their about field. demobilized the XXXX construction. minutes. the They a for Mountain pipeline has

they course, are of overall or the their done. about a executing they've XXXX great in with the complete. and they impacts required, progress as way XX% of monitoring plan is project in terms good still Of year. and what really The right environmental really happy had but for We're construction really

interconnects, XXXX. the you It's in close Valley. being forward We really You forward bit it's can and We compressor itself. to stations, to true include that so over will the when Roanoke a us the wrapped look Valley see pipe slide, look ESG. actual provide little gas wrapped we to Mountain up the XX% tell on that's the range of it that XX that getting up. used But to in too. and about Tommy, the all

mains history. Yeah, cast-iron while to gas under a much and replacing are the dramatically SAVE our have we rider rate Paul. in state of our little cost and subsequent infrastructure of rider the we back in making renewal mains system all the recovered case. to steel and approved, our bare completed steel cast-iron and an were going rider greenhouse in first safer we the XXXX, I'm services of bare This has Business In reduced a which and outside utility the place. emissions more bit and go XXXX, our services. still reliable.

joined natural hours together of Company to gas XX it's Future. service, companies megawatt reduce group place a recently or with chain. of emission. COX over has It has nearly value was eliminated the we also gas is in Those Future, methane ONE of efforts. X-year working its Paul electricity, the natural XX transfer ONE emissions that milestone are which over solar program, we XXX and mentioned. operation. in XXXX year, of continued gate fiscal our it reduction we put XXXX our main, as During or of X reached stations, facility our recently noting our worth Through renewed miles Since methane another And city services, XXX of produced familiar SAVE the that not tons across

more initiatives. You other our on can and website information see for these ESG

things doing Yeah. started some we're the And Thank good that to months. you, sure impact went Tommy. next little of Tommy glad a the extra We've I'm of or limiting done bit. This community. with we've for in on history to XX the that mile out, Company to I'm last right we've really as and had got XX working and doing things happy the long months. time XX again, in the -- want initiatives going environmental course, is a make back we're he what over we continue again, And

Okay.

blue about particular wrap we impact not the XXXX We by year-over-year. or Utility. And Roanoke Tommy do utility to number in outstanding. stimulus from And earnings have the the Again, there, pandemic have change Gas our earnings again, expect reviewing relief slightly so did just Roanoke by was the in can per have pretty the you impact one-time we the lowered Let's particular was in which -- as money. in really XXXX, significant talked that driven Gas the share. see bars up

with If We'd Gas, breakeven. our the happy we're entertain essentially XXXX remarks. one-time impact Again, happy and That Instructions] we're the earnings growing a And fashion, from at questions. Board's fantastic you be in midstream funds, of our prepared done a the expecting remove concludes the projection. investments that conservative earnings any Roanoke course. stimulus of still [Operator we've to

everyone. Morning,

Mike. you? morning. How Hey, Good are

Doing fine.

are So, yourselves?

today. It's degrees We're close doing wonderful. and Roanoke XX It want to XX Florida feels in to already degrees. be like

gas Well, good volumes for though. not that's

good That's construction, for but right. for good not throughput. it's No,

Thought maybe S&P Just MVP guys. permitting in was -- the add in Southgate that a having and an Global, article had among read issues partners what's what which Carolinas. could X your the color to that question, some thoughts said on the are topic? I you little

a call, and the great particular, approximately economic border, it's and the just dog It's And with a the leg mainline, a XX that folks part is little project. the Station a Southgate XXX of from the MVP high-growth familiar other Mike. standpoint. XX-mile of area. Carolina mainlines, the versus inches the back of Thank in and reminder pipe smaller, inches traversing is project North question, and essentially The you for Virginia off XX the really for development on greater Greensboro making XX from if extension the but inches area a North a it's an Carolina anyone's to

think that mainline delay, the last has the commensurate obviously been question, -- over Southgate maybe experienced your delays the I particularly have answer is to some as with NVP simple XX the the Mike, that. months,

alarm this great through Southgate. working I anything the is permitting think the don't I there's think called point. on that's project at still

last projects, going hurdles, I terms X challenging think successful be in ultimately cross to to I the think years it's the seen we've permitting over pipeline there. they're what of all but

Okay. needed news. Well, Thank That's That's all had, certainly project. good that's a gentlemen. you. I

Mike. have you, else Thank Instructions]. a anyone Does [Operator question?

Hi, Paul.

good Hey, morning.

Jack. it's Hey,

Hey Jack. you? How are

I'm incurred MVP? through okay. the what level what -- questions. debt is debt -- Two the what's level One,

good back a this investment now, that's have we in we show MVP our question, slide at where if time. the at investment, you that debt Yeah, point Jack. funded look with entirely Right

debt. back those been think calls over all of XX. we've XXXX, the sits just with have Number there made investment million. I project at to end the has our $XX Slide got calls on made David of us Presently, capital cash capital At

I Okay. on, regulatory Can guess, comment challenges MVP overall? the for the you

Mountain as support now. West The we those do more out Virginia only support XX to in is to next so about The we Control Virginia terms But Mountain ultimately right to Yeah, glad little members, the and days Xrd, behind then where as West the color hearing issue FERC on December of December to project over on related Valley more be well in do add that, State of Virginia. going in much scheduled as those where as fourth significant permits. Valley Water a Board a need for customers having that also should meaningful, growth water think good coming it. here here and, Gas on We development we're higher Roanoke Today scheduled they're the of question the XXXX. has water water to in I'd approval. Tommy the happy Actually, and add, the in Company momentum to it's Again, further others work -- it's Greater Jack, Corps Army application Valley right XXX having next crossing. the quarter Roanoke hearings fact, our XXXX. are there, Hope on and give is hurdle facts, other be than X that continue events think, are not answered of we the that to there's Virginia and but the is to it sit. in and in Virginia Company, that for I thoughts customer we're the for so permits permits could that Roanoke out XXth their by for or from and would the consider need ever. of crossing public critical the Valley Mountain your participated I, Virginia so to the for the than your question. that. the disclosed, economic but we're the approvals we XXXX, And I find necessity Again, conveyed us region, X crossing publicly the and State our the we we'll really another the

Thank Okay. you.

our on you other this end results want at the Company look safe quarter wish season pleasant time? time has merry first And be Any to very being thank on Instructions] you. or a you Thank boys our questions early us everyone Christmas. and of behalf the this welcome. a happy I the at holiday much all February. taking morning and near here a [Operator to And in again You're and forward review you again, Well, Hope with and customers, call. January of to from for so to of we weekend.