RGC Resources, Inc. Announces $21 Million Investment From The InterTech Group

Rhea-AI Summary

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.

Positive

• Secured $21 million investment from InterTech and $2 million from Ted Gibson.
• Investment will support Roanoke Gas modernization and Mountain Valley Pipeline project.
• Long-term investor confidence from InterTech emphasizes belief in company strategy.

Negative

• Forward-looking statements involve various risks and uncertainties.
• Potential delays and cost increases for the Mountain Valley Pipeline project.

ROANOKE, Va., March 28, 2022 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (“Resources”, the “Company”, NASDAQ:RGCO), parent company to Roanoke Gas Company and RGC Midstream, LLC, closed today a $21 million common stock investment by affiliates of The InterTech Group, Inc. (“InterTech”). Resources also closed an additional $2 million common stock investment by long-time shareholder Ted Gibson.

"InterTech’s investment in Resources positions us well as we continue Roanoke Gas’ system modernization and growth strategy,” said Resources President and CEO Paul Nester. “The investment will also greatly aid RGC Midstream in honoring its commitment, along with the other joint venture partners, to complete the Mountain Valley Pipeline project."

Rob Johnston, InterTech’s Chief Strategy Officer, stated, “We have been significant investors in RGC Resources for over a decade. We are pleased to have this opportunity to add to that investment. This investment further solidifies our long-term belief in the Company’s strategy and utility operations.”

Advisors

McGuireWoods LLP advised the Company with respect to the issuance and sale of the common stock. Janney Montgomery Scott LLC advises the Company periodically on financial related matters.

The statements in this press release by Resources 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. These statements include the Company's expectations regarding an impairment charge, earnings guidance, estimated completion for the MVP project and commitment towards completing the MVP project. Management cautions the reader that these forward-looking statements are only predictions and are subject to a number of both known and unknown risks and uncertainties, and actual results may differ materially from those expressed or implied by these forward-looking statements as a result of a number of factors. These factors include, without limitation, adverse court rulings, financial challenges affecting expected earnings per share and EBITDA, technical, political or regulatory issues with natural gas exploration, production or transportation, impact of increased natural gas demand on natural gas price, relative cost of alternative fuel sources, lower demand for natural gas, regulatory, legal, technical, political or economic issues frustrating system or area expansion, regulatory, legal, technical, political or economic issues that may affect MVP, delay in completion of MVP, increase in cost to complete MVP, including by an increase in cost of raw materials or labor due to economic factors or regulatory issues such as tariffs, economic challenges that may affect the service area generally and customer growth or demand and deterioration of relationship with primary regulator, and those risk factors described in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, which is available at www.sec.gov and on the Company’s website at www.rgcresources.com.

Contact:	Paul W. Nester
	President and CEO
Telephone:	(540) 777-3837

FAQ

What recent investment has RGC Resources announced?

RGC Resources announced a $21 million investment from InterTech and a $2 million investment from Ted Gibson.

How will the investments benefit RGC Resources?

The investments will support the modernization of Roanoke Gas and contribute to the Mountain Valley Pipeline project.

What risks are associated with RGC Resources' forward-looking statements?

Risks include potential delays, cost increases for the MVP project, and various regulatory and market uncertainties.

What is the stock symbol for RGC Resources?

The stock symbol for RGC Resources is RGCO.