RGC Resources, Inc. Reports Third Quarter Earnings
RGC Resources, Inc. (Nasdaq: RGCO) reported consolidated earnings of $156,692, or $0.02 per share, for the third quarter ended June 30, 2024, down from $686,816, or $0.07 per share, in the same period last year. The decline was attributed to higher operating costs and lower earnings from the Mountain Valley Pipeline (MVP) investment. Despite this, the company's nine-month net income increased by 13% to $11,620,074, or $1.15 per share, primarily due to MVP earnings. CEO Paul Nester highlighted the MVP's transition to operational status, which is expected to enhance system reliability and support regional growth. Roanoke Gas has filed for rate relief to address increasing costs, with interim rates effective July 1, 2024.
RGC Resources, Inc. (Nasdaq: RGCO) ha riportato un utile consolidato di $156,692, o $0.02 per azione, per il terzo trimestre concluso il 30 giugno 2024, in calo rispetto a $686,816, o $0.07 per azione, nello stesso periodo dell'anno scorso. La diminuzione è stata attribuita a costi operativi più elevati e minori guadagni dall'investimento nel Mountain Valley Pipeline (MVP). Nonostante ciò, il reddito netto della compagnia in nove mesi è aumentato del 13%, raggiungendo $11,620,074, o $1.15 per azione, principalmente grazie ai guadagni dell'MVP. Il CEO Paul Nester ha sottolineato la transizione dell'MVP verso uno stato operativo, che dovrebbe migliorare l'affidabilità del sistema e supportare la crescita regionale. Roanoke Gas ha presentato una richiesta di sollievo tarifario per affrontare l'aumento dei costi, con tariffe temporanee che entreranno in vigore il 1° luglio 2024.
RGC Resources, Inc. (Nasdaq: RGCO) reportó ganancias consolidadas de $156,692, o $0.02 por acción, para el tercer trimestre finalizado el 30 de junio de 2024, en comparación con $686,816, o $0.07 por acción, en el mismo período del año pasado. La disminución se atribuyó a costos operativos más altos y ganancias menores de la inversión en el Mountain Valley Pipeline (MVP). A pesar de esto, el ingreso neto de la compañía en nueve meses aumentó un 13% a $11,620,074, o $1.15 por acción, principalmente debido a las ganancias del MVP. El CEO Paul Nester resaltó la transición del MVP hacia un estado operativo, que se espera mejore la fiabilidad del sistema y apoye el crecimiento regional. Roanoke Gas ha solicitado un alivio tarifario para abordar el aumento de costos, con tarifas interinas efectivas desde el 1 de julio de 2024.
RGC 리소스 주식회사(Nasdaq: RGCO)는 2024년 6월 30일 마감된 3분기 동안 총 $156,692(주당 $0.02)의 수익을 보고했으며, 이는 지난해 같은 기간의 $686,816(주당 $0.07)에서 감소한 수치입니다. 감소의 원인은 높은 운영 비용과 Mountain Valley Pipeline(MVP) 투자로 인한 낮은 수익9개월 순이익은 13% 증가하여 $11,620,074(주당 $1.15)에 달하며, 이는 주로 MVP 수익에 기인합니다. CEO 폴 네스터는 MVP의 운영 상태로의 전환을 강조하며, 이는 시스템의 신뢰성을 향상시키고 지역 성장을 지원할 것으로 예상하고 있습니다. 로아녹 가스는 증가하는 비용을 해결하기 위해 요금 인하를 신청했으며, 임시 요금은 2024년 7월 1일부터 시행됩니다.
RGC Resources, Inc. (Nasdaq: RGCO) a déclaré un bénéfice consolidé de $156,692, soit $0.02 par action, pour le troisième trimestre se terminant le 30 juin 2024, en baisse par rapport à $686,816, soit $0.07 par action, pour la même période l'année dernière. Cette baisse a été attribuée à des coûts d'exploitation plus élevés et à des revenus inférieurs provenant de l'investissement dans le Mountain Valley Pipeline (MVP). Malgré cela, le revenu net de l'entreprise sur neuf mois a augmenté de 13% pour atteindre $11,620,074, soit $1.15 par action, principalement grâce aux revenus de l'MVP. Le PDG Paul Nester a souligné la transition de l'MVP vers un statut opérationnel, qui devrait améliorer la fiabilité du système et soutenir la croissance régionale. Roanoke Gas a déposé une demande de soulagement tarifaire afin de faire face à l'augmentation des coûts, avec des tarifs provisoires en vigueur à partir du 1er juillet 2024.
RGC Resources, Inc. (Nasdaq: RGCO) berichtete über konsolidierte Einnahmen von $156,692 oder $0.02 pro Aktie für das dritte Quartal, das am 30. Juni 2024 endete, was einen Rückgang im Vergleich zu $686,816 oder $0.07 pro Aktie im gleichen Zeitraum des Vorjahres darstellt. Der Rückgang wurde auf höhere Betriebskosten und geringere Erträge aus der Investition in die Mountain Valley Pipeline (MVP) zurückgeführt. Trotz dieser Umstände ist der Nettoertrag des Unternehmens in den letzten neun Monaten um 13% auf $11,620,074 oder $1.15 pro Aktie gestiegen, hauptsächlich aufgrund der MVP-Erträge. CEO Paul Nester hob die Übergangsphase der MVP zu einem Betriebsstatus hervor, die die Systemzuverlässigkeit verbessern und das regionale Wachstum unterstützen soll. Roanoke Gas hat eine Anfrage auf Tariferleichterung eingereicht, um steigenden Kosten zu begegnen, wobei die vorläufigen Tarife ab dem 1. Juli 2024 gelten.
- Mountain Valley Pipeline (MVP) became operational in June 2024, enhancing system reliability and stability
- Nine-month net income increased by 13% to $11,620,074, or $1.15 per share
- Interim rates for cost relief went into effect on July 1, 2024, subject to refund
- Third quarter earnings declined to $156,692 ($0.02 per share) from $686,816 ($0.07 per share) year-over-year
- Higher personnel and professional costs, along with persistent inflationary pressures, impacted operating income
- Lower noncash earnings from the MVP investment as it transitioned from construction to operations
Insights
RGC Resources' Q3 earnings show a significant decline from
The company's strategic investment in MVP is now operational, which could potentially stabilize future earnings. The interim rate increase effective July 1, 2024, might help offset rising costs, but its impact remains to be seen. Investors should closely monitor the outcome of the rate application with the State Commission, as it could significantly affect future profitability.
The MVP going into service is a pivotal development for RGC Resources. This pipeline not only enhances system reliability but also opens up new market opportunities, particularly in Franklin County. The long-term implications of this infrastructure investment are substantial, potentially driving regional growth and securing a stable, cost-effective energy source.
However, the transition from construction to operations has temporarily impacted earnings negatively. As the pipeline ramps up to full capacity, we should expect to see its contribution to RGC's bottom line increase. The company's ability to leverage this asset for customer acquisition and regional expansion will be important for future growth and shareholder value.
The rate application filed with the State Commission is a critical move to address RGC's rising costs. The implementation of interim rates from July 1, 2024, subject to refund, indicates the urgency of the situation. This regulatory process will be pivotal in determining the company's ability to maintain profitability in the face of inflationary pressures.
Investors should be aware that while rate increases can improve financial performance, they may also face regulatory scrutiny and potential customer backlash. The outcome of this rate case will significantly impact RGC's financial outlook and its relationship with both regulators and consumers. Close attention should be paid to the final decision and any conditions attached to the rate increase.
ROANOKE, Va., Aug. 05, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of
CEO Paul Nester stated, “We are excited that the MVP went into service in June. This milestone benefits our customers immediately as it enhances system reliability and stability. It empowers new local customers in the short term as we expect to provide gas to our first customer in Franklin County in the fiscal fourth quarter. And finally, we believe the pipeline fosters regional growth in the long term by providing a reliable, low-cost source of energy for years to come.”
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. The interim rates went into effect July 1, 2024, subject to refund.
Through the first nine months of fiscal 2024, the Company’s net income of
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 and the Company’s rate application 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 third quarter and fiscal year to date are as follows:
| RGC Resources, Inc. and Subsidiaries | |||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Operating revenues | $ | 14,458,202 | $ | 13,660,245 | $ | 71,536,930 | $ | 84,972,237 | |||||
| Operating expenses | 12,900,609 | 11,861,780 | 54,697,591 | 68,037,865 | |||||||||
| Operating income | 1,557,593 | 1,798,465 | 16,839,339 | 16,934,372 | |||||||||
| Equity in earnings of unconsolidated affiliate | 282,604 | 519,482 | 2,979,823 | 523,581 | |||||||||
| Other income (expense), net | (69,349 | ) | 6,725 | 140,924 | 203,155 | ||||||||
| Interest expense | 1,567,093 | 1,423,566 | 4,769,979 | 4,188,592 | |||||||||
| Income before income taxes | 203,755 | 901,106 | 15,190,107 | 13,472,516 | |||||||||
| Income tax expense | 47,063 | 214,290 | 3,570,033 | 3,187,409 | |||||||||
| Net income | $ | 156,692 | $ | 686,816 | $ | 11,620,074 | $ | 10,285,107 | |||||
| Net earnings per share of common stock: | |||||||||||||
| Basic | $ | 0.02 | $ | 0.07 | $ | 1.15 | $ | 1.04 | |||||
| Diluted | $ | 0.02 | $ | 0.07 | $ | 1.15 | $ | 1.04 | |||||
| Cash dividends per common share | $ | 0.2000 | $ | 0.1975 | $ | 0.6000 | $ | 0.5925 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||
| Basic | 10,188,592 | 9,939,843 | 10,129,111 | 9,893,454 | |||||||||
| Diluted | 10,192,797 | 9,942,871 | 10,132,347 | 9,899,221 | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| (Unaudited) | |||||||||||||
| June 30, | |||||||||||||
| Assets | 2024 | 2023 | |||||||||||
| Current assets | $ | 25,408,031 | $ | 25,754,930 | |||||||||
| Utility property, net | 257,936,755 | 243,087,547 | |||||||||||
| Other non-current assets | 30,809,374 | 25,923,607 | |||||||||||
| Total Assets | $ | 314,154,160 | $ | 294,766,084 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities | $ | 23,782,556 | $ | 27,252,815 | |||||||||
| Long-term debt, net | 136,311,348 | 126,252,586 | |||||||||||
| Deferred credits and other non-current liabilities | 45,292,464 | 40,312,870 | |||||||||||
| Total Liabilities | 205,386,368 | 193,818,271 | |||||||||||
| Stockholders' Equity | 108,767,792 | 100,947,813 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 314,154,160 | $ | 294,766,084 | |||||||||
| Contact: | Timothy J. Mulvaney Vice President, Treasurer and CFO | |
| Telephone: | (540) 777-3997 |
FAQ
What were RGC Resources' (RGCO) earnings for Q3 2024?
How did RGCO's Q3 2024 earnings compare to the previous year?
What factors contributed to RGCO's earnings decline in Q3 2024?
When did the Mountain Valley Pipeline (MVP) become operational for RGCO?
What was RGCO's net income for the first nine months of fiscal 2024?
