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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.
RGC Resources, Inc. (NASDAQ:RGCO) has successfully closed a $4 million common stock investment from T. Rowe Price, following a prior $23 million investment announced on March 28, 2022. This funding highlights T. Rowe Price's ongoing confidence in RGC Resources' business strategy and long-term shareholder value. The investment aligns with the company's goals, especially regarding the MVP project, despite existing risks related to market conditions and regulatory issues. The Company continues to maintain strong relationships with its advisors, including McGuireWoods LLP and Janney Montgomery Scott LLC.
RGC Resources (NASDAQ:RGCO) has successfully completed a $21 million common stock investment from affiliates of The InterTech Group and an additional $2 million from long-time shareholder Ted Gibson. This capital infusion is expected to support the modernization of Roanoke Gas and aid RGC Midstream in fulfilling commitments for the Mountain Valley Pipeline project. InterTech has reiterated its long-term confidence in RGC’s utility operations, marking over a decade of investment in the company. However, the press release also includes forward-looking statements that involve risks and uncertainties.
RGC Midstream, a subsidiary of RGC Resources (NASDAQ: RGCO), announced the potential for a material impairment charge due to recent court decisions affecting the Mountain Valley Pipeline (MVP) project. The U.S. Court of Appeals vacated certain permits necessary for MVP's completion, leading to uncertainty and the withdrawal of the summer 2022 in-service target. As this impairment is evaluated, RGC Resources is also withdrawing its 2022 earnings guidance, which was contingent on the MVP’s projected earnings. The company remains committed to completing the MVP project despite these challenges.
RGC Resources, Inc. (NASDAQ: RGCO) reported consolidated earnings of $3,584,529 ($0.43 per diluted share) for Q4 2021, down from $4,723,263 ($0.58 per diluted share) in Q4 2020. For the fiscal year 2021, earnings were $8,963,328 ($1.08 per diluted share), compared to $11,280,861 ($1.38 per diluted share) in 2020. The decline is largely attributed to a $1.3 million decrease in non-cash equity earnings, although Roanoke Gas experienced a 12% growth in operating income due to improved margins and customer growth.
RGC Resources, Inc. (NASDAQ: RGCO) will hold its fiscal first-quarter conference call on February 8, 2022, at 9:00 a.m. ET. Interested parties can access the call by dialing 1-800-261-3225 with the conference ID 7773810. Presentation materials will be available on the company's website prior to the call. RGC Resources provides energy services in Virginia through its subsidiaries Roanoke Gas Company and RGC Midstream. The company may issue forward-looking statements regarding financial performance and business prospects, with a reminder that actual results may differ from those anticipated.
The Board of Directors of RGC Resources (NASDAQ: RGCO) declared a quarterly dividend of $0.195 per share on January 24, 2022. This dividend, marking the company’s 312th consecutive quarterly cash dividend, will be paid on May 1, 2022, to shareholders of record as of April 15, 2022. RGC Resources provides energy and related services in Virginia through subsidiaries like Roanoke Gas Company and RGC Midstream.
RGC Resources (NASDAQ: RGCO) held its annual shareholders meeting on January 24, 2022, where shareholders elected Abney S. Boxley, III, Elizabeth A. McClanahan, and John B. Williamson, III to three-year terms on the Board of Directors. Additionally, Brown, Edwards & Company, L.L.P. was ratified as auditors for the fiscal year 2022. Post-meeting, John B. Williamson, III was elected Chairman, and Paul W. Nester was appointed President and CEO. RGC Resources serves around 62,600 customers in Virginia through its subsidiaries, including Roanoke Gas Company.
RGC Resources, Inc. (NASDAQ: RGCO) has appointed Jason Field as Vice President, Chief Financial Officer, and Treasurer, effective January 10, 2022. Mr. Field brings extensive financial leadership experience, previously serving as Vice President of Finance at Medical Facilities of America. He will be instrumental in guiding the finance organization under CEO Paul Nester. RGC Resources provides services to around 62,600 customers in Virginia through subsidiaries like Roanoke Gas Company.
The Board of Directors of RGC Resources, Inc. (NASDAQ: RGCO) declared a quarterly dividend of $0.195 per share on November 29, 2021, marking a 5.4% increase from the previous annual dividend of $0.74. This increase reflects the company's strong financial performance and commitment to shareholder returns, having raised dividends for 18 consecutive years. The total indicated annual dividend now stands at $0.78 per share, with payments scheduled for February 1, 2022, to shareholders of record by January 18, 2022.
RGC Resources, Inc. (NASDAQ: RGCO) will conduct its fiscal fourth quarter and full year 2021 conference call on December 3, 2021, at 9:00 a.m. ET. Investors can access the call by dialing 1-800-261-3225 with a conference ID of 7773810. The company, which serves Virginia through Roanoke Gas Company and RGC Midstream, LLC, will provide presentation materials on its website prior to the call. The press release notes the potential for forward-looking statements and cautions that actual results may differ from expectations.
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