RGC Resources Inc - RGCO STOCK NEWS

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RGC Resources Inc. (NASDAQ: RGCO) is an established energy services company with a rich history dating back to 1883. Headquartered in Roanoke, Virginia, the company primarily engages in the distribution and sale of natural gas to residential, commercial, and industrial customers across Roanoke and its neighboring localities. With a robust infrastructure that includes approximately 1,144 miles of transmission and distribution pipeline and a liquefied natural gas storage facility, RGC Resources ensures a reliable supply of natural gas to its customers.

The company operates through three primary segments:

• Gas Utility: This segment is the main revenue generator and focuses on the distribution of natural gas through the Roanoke Gas Company.
• Investment in Affiliates: This segment reflects the income generated from the company's investments in projects such as the Mountain Valley Pipeline (MVP) and the Southgate project.
• Parent & Other: This segment includes unregulated activities and certain corporate eliminations.

RGC Resources has recently reported consolidated earnings of $686,816, or $0.07 per share, for the quarter ending June 30, 2023, compared to $592,527, or $0.06 per share, for the same period in 2022. Despite a net loss of $1,130,122, or $0.11 per share for the twelve months ending June 30, 2023, the underlying net income was $10,209,447, or $1.03 per share. The earnings growth was primarily driven by improved utility margins and the company's investment in MVP, despite higher interest expenses.

CEO Paul Nester expressed satisfaction with the U.S. Supreme Court's decision to allow the MVP project to continue, which is expected to significantly enhance the natural gas supply to the Roanoke region by winter. The company attributes its improved utility margins to infrastructure replacement programs and the implementation of new non-gas rates.

RGC Resources is committed to providing energy and related services through its subsidiaries, Roanoke Gas Company and RGC Midstream, LLC. The company uses non-GAAP measures like utility margins and underlying net income to provide better comparability of financial results and help in evaluating operating performance. However, it's important to consider these measures alongside GAAP results.

For the upcoming fiscal year ending September 30, 2023, RGC Resources advises that the quarterly earnings should not be seen as indicative of the annual results due to the seasonal nature of their business, which tends to generate higher earnings during the winter months.

RGC Resources also cautions investors with forward-looking statements, noting that various factors such as gas prices, supply conditions, geopolitical considerations, and regulatory challenges may impact actual results. The company is committed to updating its stakeholders as required by applicable laws and regulations.