RGC Resources, Inc. Reports Second Quarter Earnings
May 01, 2024 at 05:00 pm EDT
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ROANOKE, Va., May 01, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $6,443,390, or $0.63 per share, for the second quarter ended March 31, 2024, compared to $6,341,886, or $0.64 per share, for the fiscal quarter ended March 31, 2023. The increase over the quarter a year ago included $1.2 million in earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”), as well as improved utility margins which inflationary cost increases largely offset.
Continued investments in utility infrastructure at Roanoke Gas to enhance system reliability and deliver gas to new customers contributed to earnings. CEO Paul Nester stated, “A mild winter has led to lower revenues, and persistent inflationary cost pressures are challenging earnings. The mild weather aided construction progress of the MVP during the quarter, and the MVP has filed for a final permit from FERC to allow gas to flow in the next 30 days.” 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 with rates to go into effect July 1, 2024, subject to refund.
Through the first six months of fiscal 2024, the Company’s net income of $11,463,382, or $1.14 per share, was up 19.4% from $9,598,291, or $0.97 per share, primarily due to earnings from the Company’s investment in the MVP.
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 construction and operation, and regulatory and legal challenges 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 second quarter and fiscal year to date are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
Six Months Ended
March 31,
March 31,
2024
2023
2024
2023
Operating revenues
$
32,659,376
$
38,029,657
$
57,078,728
$
71,311,992
Operating expenses
24,029,667
28,438,235
41,796,982
56,176,085
Operating income
8,629,709
9,591,422
15,281,746
15,135,907
Equity in earnings of unconsolidated affiliate
1,229,384
2,867
2,697,219
4,099
Other income, net
89,487
121,824
210,273
196,430
Interest expense
1,566,613
1,395,862
3,202,886
2,765,026
Income before income taxes
8,381,967
8,320,251
14,986,352
12,571,410
Income tax expense
1,938,577
1,978,365
3,522,970
2,973,119
Net income
$
6,443,390
$
6,341,886
$
11,463,382
$
9,598,291
Net earnings per share of common stock:
Basic
$
0.63
$
0.64
$
1.14
$
0.97
Diluted
$
0.63
$
0.64
$
1.13
$
0.97
Cash dividends per common share
$
0.2000
$
0.1975
$
0.4000
$
0.3950
Weighted average number of common shares outstanding:
Basic
10,170,595
9,911,202
10,099,533
9,870,259
Diluted
10,174,006
9,918,708
10,102,284
9,877,501
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
Assets
2024
2023
Current assets
$
28,525,645
$
32,360,035
Utility property, net
254,140,117
239,285,862
Other non-current assets
30,693,768
24,806,325
Total Assets
$
313,359,530
$
296,452,222
Liabilities and Stockholders' Equity
Current liabilities
$
21,702,382
$
43,632,463
Long-term debt, net
135,916,887
112,762,045
Deferred credits and other non-current liabilities
45,196,399
39,779,306
Total Liabilities
202,815,668
196,173,814
Stockholders' Equity
110,543,862
100,278,408
Total Liabilities and Stockholders' Equity
$
313,359,530
$
296,452,222
Contact: Timothy J. Mulvaney Vice President, Treasurer and CFO Telephone: (540) 777-3997
RGC Resources, Inc. is an energy services company. It is primarily engaged in the sale and distribution of natural gas to residential, commercial and industrial customers in Roanoke, Virginia, and the surrounding localities, through its subsidiary, Roanoke Gas Company (Roanoke Gas). Roanoke Gas also provides certain unregulated services. Roanoke Gas maintains an integrated natural gas distribution system to deliver natural gas purchased from suppliers to residential, commercial, and industrial users in its service territory. Roanoke Gas owns and operates about six metering stations through, which it measures and regulates the gas being delivered by its suppliers. These stations are located at various points throughout its distribution system. Roanoke Gas owns a liquefied natural gas storage facility located in its service territory that has the capacity to store up to 200,000 dekatherms (DTH) of natural gas. It has approximately 1,168 miles of transmission and distribution pipeline.