RGC Resources, Inc. Reports 2024 Earnings

ROANOKE, Va., Nov. 13, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $11,760,896, or $1.16 per share, for the fiscal year ended September 30, 2024, compared to $11,299,282, or $1.14 per share, for the fiscal year ended September 30, 2023. The increase reflected higher levels of earnings from the Company's investment in the Mountain Valley Pipeline ("MVP") due to more AFUDC in fiscal 2024 prior to the pipeline being placed in service in June 2024. The lower cost of natural gas in 2024 reduced bills to customers and revenues for the Company, despite inflationary costs leading to higher tariffs. Interest expense also increased primarily due to higher interest rates.

Roanoke Gas continued investing in utility infrastructure to enhance system reliability and enable growth in customers and earnings. CEO Paul Nester stated, "Gas flowing through the MVP in 2024 is a major milestone we worked hard to achieve, and one we and the region will long appreciate. We are pleased to have recently reached a settlement on our pending rate proceeding with the State Corporation Commission staff that provides for an incremental increase in annual revenues of $4.08 million, subject to approval by the Commission."

Net income for the quarter ended September 30, 2024 was $140,822, or $0.01 per share, compared to $1,014,175, or $0.10 per share, for the quarter ended September 30, 2023. A lower level of earnings from our investment in MVP along with higher interest expense resulted in lower net income compared to the same quarter a year ago.

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 customer growth, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, geopolitical considerations, expectations regarding the rate making, MVP operation and Southgate construction, along with risks included under Item 1-A in the Company's fiscal 2023 Form10-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 fourth quarter and twelve months are as follows:

 
 
                   RGC Resources, Inc. and Subsidiaries 
               Condensed Consolidated Statements of Income 
                               (Unaudited) 
 
                       Three Months Ended          Twelve Months Ended 
                          September 30,               September 30, 
                        2024         2023          2024          2023 
 
Operating revenues  $13,104,302  $ 12,467,528  $ 84,641,232  $97,439,765 
Operating expenses   12,861,881    11,723,420    67,559,472   79,761,285 
                     ----------   -----------   -----------   ---------- 
Operating income        242,421       744,108    17,081,760   17,678,480 
Equity in earnings 
 of unconsolidated 
 affiliate              872,048     1,561,409     3,851,871    2,084,990 
Other income, net       887,837       443,373     1,028,761      646,528 
Interest expense      1,734,906     1,430,213     6,504,885    5,618,805 
                     ----------   -----------   -----------   ---------- 
Income before 
 income taxes           267,400     1,318,677    15,457,507   14,791,193 
Income tax expense      126,578       304,502     3,696,611    3,491,911 
                     ----------   -----------   -----------   ---------- 
 
Net income          $   140,822  $  1,014,175  $ 11,760,896  $11,299,282 
                     ==========   ===========   ===========   ========== 
 
Net earnings per 
share of common 
stock: 
   Basic            $      0.01  $       0.10  $       1.16  $      1.14 
                     ==========   ===========   ===========   ========== 
   Diluted          $      0.01  $       0.10  $       1.16  $      1.14 
                     ==========   ===========   ===========   ========== 
 
Cash dividends per 
 common share       $    0.2000  $     0.1975  $     0.8000  $    0.7900 
                     ==========   ===========   ===========   ========== 
 
Weighted average number of 
common shares outstanding: 
   Basic             10,223,785    10,009,491    10,152,909    9,922,701 
   Diluted           10,228,365    10,011,039    10,156,480    9,927,157 
 
 
                  Condensed Consolidated Balance Sheets 
                               (Unaudited) 
 
                                       September 30, 
Assets                                   2024          2023 
                                  -----------   ----------- 
Current assets                   $ 25,072,301  $ 26,795,262 
Utility property, 
 net                              262,041,454   247,583,551 
Other non-current 
 assets                            33,777,404    29,350,527 
                                  -----------   ----------- 
 
   Total Assets                  $320,891,159  $303,729,340 
                                  ===========   =========== 
 
Liabilities and 
Stockholders' 
Equity 
Current 
 liabilities                     $ 28,698,430  $ 32,918,787 
Long-term debt, 
 net                              136,672,908   125,844,728 
Deferred credits 
 and other 
 non-current 
 liabilities                       47,383,046    44,233,200 
   Total 
    Liabilities                   212,754,384   202,996,715 
Stockholders' 
 Equity                           108,136,775   100,732,625 
                                  -----------   ----------- 
 
   Total 
    Liabilities 
    and 
    Stockholders' 
    Equity                       $320,891,159  $303,729,340 
                                  ===========   =========== 
 
 
Contact:      Timothy J. Mulvaney 
             VP, Treasurer and CFO 
Telephone:          $(540.SI)$ 777-3997 
 

(END) Dow Jones Newswires

November 13, 2024 16:56 ET (21:56 GMT)