RGC Resources, Inc. Announces $4 Million Investment From T. Rowe Price

Rhea-AI Summary

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.

Positive

• Successful closure of $4 million investment from T. Rowe Price.
• Building on a previous $23 million investment, indicating strong investor confidence.
• T. Rowe Price’s long-term shareholder relationship enhances credibility.

Negative

• Risks associated with the MVP project completion and potential impairments.
• Uncertainties regarding earnings and EBITDA performance.
• Market and regulatory challenges that may affect business growth.

ROANOKE, Va., March 30, 2022 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (“Resources”, the “Company”, NASDAQ:RGCO), parent company to Roanoke Gas Company and RGC Midstream, LLC, closed today a $4 million common stock investment by funds and accounts advised by T. Rowe Price Investment Management, Inc. (“T. Rowe Price”).   T. Rowe Price’s investment follows the $23 million of investments announced by Resources on March 28, 2022.   

“T. Rowe Price is one of the most highly regarded, recognizable names in the financial and investment services industry,” said Resources President and CEO Paul Nester. “We are proud to have had T. Rowe Price as one of our largest shareholders for the last several years. This investment demonstrates T. Rowe Price’s confidence in our business strategy and ability to continue to deliver long-term shareholder value.”

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 is the significance of T. Rowe Price's investment in RGC Resources (RGCO)?

T. Rowe Price's $4 million investment signifies strong confidence in RGC Resources' business strategy and future growth potential.

How much did RGC Resources raise in total from T. Rowe Price in March 2022?

RGC Resources raised a total of $27 million from T. Rowe Price in March 2022, including a prior $23 million investment.

What risks does RGC Resources face following the recent investment?

RGC Resources faces risks related to the MVP project, including potential delays and market challenges affecting earnings.

Who advised RGC Resources on its common stock investment?

McGuireWoods LLP advised RGC Resources on the common stock investment, while Janney Montgomery Scott LLC provides periodic financial advice.