RGC Resources, Inc. Reports Third Quarter Earnings

/EIN News/ -- ROANOKE, Va., Aug. 05, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $156,692, or $0.02 per share, for the third quarter ended June 30, 2024, compared to $686,816, or $0.07 per share, for the fiscal quarter ended June 30, 2023. The decline was the result of decreased operating income due to higher personnel and professional costs as well as persistent inflationary pressures across most areas compared to a year ago, along with lower noncash earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”) as the pipeline transitioned from construction to gas transmission operations.

CEO Paul Nester stated, “We are excited that the MVP went into service in June. This milestone benefits our customers immediately as it enhances system reliability and stability. It empowers new local customers in the short term as we expect to provide gas to our first customer in Franklin County in the fiscal fourth quarter. And finally, we believe the pipeline fosters regional growth in the long term by providing a reliable, low-cost source of energy for years to come.”

As noted above and announced last quarter, Roanoke Gas is experiencing increasing costs and has filed for relief through a rate application with the State Corporation Commission. The interim rates went into effect July 1, 2024, subject to refund.

Through the first nine months of fiscal 2024, the Company’s net income of $11,620,074, or $1.15 per share, was up 13% from $10,285,107, or $1.04 per share, in the first nine months of the prior year, primarily due to earnings from the Company’s investment in the MVP.

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.

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 and the Company’s rate application 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 third quarter and fiscal year to date are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
		Three Months Ended							Nine Months Ended
		June 30,							June 30,
			2024				2023			2024			2023
Operating revenues		$	14,458,202			$	13,660,245		$	71,536,930		$	84,972,237
Operating expenses			12,900,609				11,861,780			54,697,591			68,037,865
Operating income			1,557,593				1,798,465			16,839,339			16,934,372
Equity in earnings of unconsolidated affiliate			282,604				519,482			2,979,823			523,581
Other income (expense), net			(69,349	)			6,725			140,924			203,155
Interest expense			1,567,093				1,423,566			4,769,979			4,188,592
Income before income taxes			203,755				901,106			15,190,107			13,472,516
Income tax expense			47,063				214,290			3,570,033			3,187,409
Net income		$	156,692			$	686,816		$	11,620,074		$	10,285,107
Net earnings per share of common stock:
Basic		$	0.02			$	0.07		$	1.15		$	1.04
Diluted		$	0.02			$	0.07		$	1.15		$	1.04
Cash dividends per common share		$	0.2000			$	0.1975		$	0.6000		$	0.5925
Weighted average number of common shares outstanding:
Basic			10,188,592				9,939,843			10,129,111			9,893,454
Diluted			10,192,797				9,942,871			10,132,347			9,899,221
Condensed Consolidated Balance Sheets
(Unaudited)
						June 30,
Assets							2024			2023
Current assets						$	25,408,031		$	25,754,930
Utility property, net							257,936,755			243,087,547
Other non-current assets							30,809,374			25,923,607
Total Assets						$	314,154,160		$	294,766,084
Liabilities and Stockholders' Equity
Current liabilities						$	23,782,556		$	27,252,815
Long-term debt, net							136,311,348			126,252,586
Deferred credits and other non-current liabilities							45,292,464			40,312,870
Total Liabilities							205,386,368			193,818,271
Stockholders' Equity							108,767,792			100,947,813
Total Liabilities and Stockholders' Equity						$	314,154,160		$	294,766,084

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