RGC Resources, Inc. Reports Second Quarter Earnings

ROANOKE, Va., May 01, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $6,443,390, or $0.63 per share, for the second quarter ended March 31, 2024, compared to $6,341,886, or $0.64 per share, for the fiscal quarter ended March 31, 2023. The increase over the quarter a year ago included $1.2 million in earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”), as well as improved utility margins which inflationary cost increases largely offset.

Continued investments in utility infrastructure at Roanoke Gas to enhance system reliability and deliver gas to new customers contributed to earnings. CEO Paul Nester stated, “A mild winter has led to lower revenues, and persistent inflationary cost pressures are challenging earnings. The mild weather aided construction progress of the MVP during the quarter, and the MVP has filed for a final permit from FERC to allow gas to flow in the next 30 days.” 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 with rates to go into effect July 1, 2024, subject to refund.

Through the first six months of fiscal 2024, the Company’s net income of $11,463,382, or $1.14 per share, was up 19.4% from $9,598,291, or $0.97 per share, 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 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 second quarter and fiscal year to date are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
		Three Months Ended						Six Months Ended
		March 31,						March 31,
		2024			2023			2024			2023
Operating revenues		$	32,659,376		$	38,029,657		$	57,078,728		$	71,311,992
Operating expenses			24,029,667			28,438,235			41,796,982			56,176,085
Operating income			8,629,709			9,591,422			15,281,746			15,135,907
Equity in earnings of unconsolidated affiliate			1,229,384			2,867			2,697,219			4,099
Other income, net			89,487			121,824			210,273			196,430
Interest expense			1,566,613			1,395,862			3,202,886			2,765,026
Income before income taxes			8,381,967			8,320,251			14,986,352			12,571,410
Income tax expense			1,938,577			1,978,365			3,522,970			2,973,119
Net income		$	6,443,390		$	6,341,886		$	11,463,382		$	9,598,291
Net earnings per share of common stock:
Basic		$	0.63		$	0.64		$	1.14		$	0.97
Diluted		$	0.63		$	0.64		$	1.13		$	0.97
Cash dividends per common share		$	0.2000		$	0.1975		$	0.4000		$	0.3950
Weighted average number of common shares outstanding:
Basic			10,170,595			9,911,202			10,099,533			9,870,259
Diluted			10,174,006			9,918,708			10,102,284			9,877,501
Condensed Consolidated Balance Sheets
(Unaudited)
					March 31,
Assets					2024			2023
Current assets					$	28,525,645		$	32,360,035
Utility property, net						254,140,117			239,285,862
Other non-current assets						30,693,768			24,806,325
Total Assets					$	313,359,530		$	296,452,222
Liabilities and Stockholders' Equity
Current liabilities					$	21,702,382		$	43,632,463
Long-term debt, net						135,916,887			112,762,045
Deferred credits and other non-current liabilities						45,196,399			39,779,306
Total Liabilities						202,815,668			196,173,814
Stockholders' Equity						110,543,862			100,278,408
Total Liabilities and Stockholders' Equity					$	313,359,530		$	296,452,222

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