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RGC Resources, Inc. Reports First Quarter Earnings

1. RGCO's Q1 earnings increased to $5.27 million from $5.02 million. 2. Utility margins rose due to new base rates effective July 2024. 3. Colder December weather and strong customer usage boosted performance significantly. 4. Equity earnings from MVP pipeline decreased from $1.47M to $854K YoY. 5. Investments in infrastructure aim to enhance reliability and customer service.

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FAQ

Why Bullish?

Increased earnings and utility margins suggest positive financial health. Similar past performance increases led to stock price gains.

How important is it?

The financial performance may influence investor perceptions, impacting future stock valuations.

Why Short Term?

Recent earnings results typically have an immediate effect on stock prices. Earnings announcements often lead to quick market reactions.

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MVPRGCO
February 10, 2025 16:30 ET  | Source: RGC Resources Inc. ROANOKE, Va., Feb. 10, 2025 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $5,269,689, or $0.51 per share, for the first quarter ended December 31, 2024, compared to $5,019,992, or $0.50 per share, for the fiscal quarter ended December 31, 2023. Higher utility margin reflected the new base rates that went into effect July 1, 2024 and was offset by lower equity earnings from unconsolidated affiliate and higher interest expense. Roanoke Gas continued investing in utility infrastructure to enhance system reliability and deliver gas to new customers, driving both higher margins and earnings. CEO Paul Nester stated, “Colder weather in December and strong usage by our largest transportation customer also contributed to a higher quarterly performance. The Company’s equity earnings from its investment in the MVP were $854,213 in the first quarter ended December 31, 2024, as the pipeline is in operation, compared to $1,467,835 in the first quarter ended December 31, 2023, which corresponded to the Company’s share of Allowance for Funds Used During Construction (AFUDC) during the construction phase.” 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. Utility margin is a non-GAAP measure defined as utility revenues less cost of gas. Management considers this non-GAAP measure to provide useful information to both management and investors for purpose of such comparability and in evaluating operating performance, but it should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for, or superior to, GAAP results. 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, MVP operation, along with risks included under Item 1-A in the Company’s fiscal 2024 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 first quarter are as follows: RGC Resources, Inc. and SubsidiariesCondensed Consolidated Statements of Income(Unaudited)  Three Months EndedDecember 31,  2024 2023        Operating revenues$27,289,486 $24,419,352 Operating expenses 19,961,465  17,767,315 Operating income 7,328,021  6,652,037 Equity in earnings of unconsolidated affiliate 854,213  1,467,835 Other income, net 473,336  120,786 Interest expense 1,779,930  1,636,273 Income before income taxes 6,875,640  6,604,385 Income tax expense 1,605,951  1,584,393        Net income$5,269,689 $5,019,992        Net earnings per share of common stock:      Basic$0.51 $0.50 Diluted$0.51 $0.50        Cash dividends per common share$0.2075 $0.2000        Weighted average number of common shares outstanding:      Basic 10,259,717  10,029,243 Diluted 10,263,997  10,031,354   Condensed Consolidated Balance Sheets(Unaudited)  December 31, Assets2024 2023 Current assets$35,920,737 $34,769,875 Utility property, net 265,540,721  250,343,833 Other non-current assets 33,711,014  29,589,527        Total Assets$335,172,472 $314,703,235        Liabilities and Stockholders' Equity      Current liabilities$64,324,575 $64,196,722 Long-term debt, net 111,336,132  102,461,196 Deferred credits and other non-current liabilities 47,750,676  44,500,714 Total Liabilities 223,411,383  211,158,632 Stockholders' Equity 111,761,089  103,544,603        Total Liabilities and Stockholders' Equity$335,172,472 $314,703,235   Contact:Timothy J. Mulvaney Vice President, Treasurer and CFOTelephone:(540) 777-3997

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