Q2 2024 RGC Resources Inc Earnings Call Transcript
Key Points
- RGC Resources Inc (RGCO) reported an increase in total billed customers to 63,660, indicating steady growth within its service footprint.
- Delivered gas volumes were 9% higher compared to last year's second quarter due to colder weather, showing strong demand.
- The company successfully managed capital expenditures, with a total of $11.3 million spent in the first six months of fiscal 2024, demonstrating effective cost management.
- Net income for the second quarter was $6.4 million, slightly up from $6.3 million in the same quarter a year ago, driven by non-cash AFUDC from the MVP investment.
- RGC Resources Inc (RGCO) is nearing the commercial operation of the Mountain Valley Pipeline, which is expected to enhance supply and operational efficiency.
- Second quarter operating income decreased by approximately 10% to $8.6 million due to rising costs across various sectors including personnel and IT.
- Interest expenses increased by $170,000 due to a higher interest rate environment impacting the company's floating rate debt.
- The company faces ongoing inflationary pressures which are expected to continue affecting financial performance in the upcoming quarters.
- There is a significant amount of debt, nearly $34 million, associated with the MVP investment, posing financial risk.
- The rate case filed with the Virginia State Corporation Commission is still under review with a final resolution not expected until the second quarter of 2025, creating uncertainty.
Good morning and thank you for joining us as we discuss RGC Resources, Inc's 2024 second quarter results. I am Tommy Oliver, Senior Vice President, Regulatory and External Affairs for RGC Resources. I am joined this morning by Paul Nester, President and CEO of RGC Resources; and Tim Mulvaney, Treasurer and CFO.
Before we get started, I wanted to review a few administrative items. We have muted all lines. I'd ask that all participants remain muted. The link to today's presentation is available on the Investor and Financial Information page on our website at www.RGCResources.com. At the conclusion of the presentation and our remarks, we will take questions.
So let's start on slide 1. This presentation contains forecasts and projections. Slide 1 has information about risks and uncertainties, including forward-looking statements that should be understood in the context of our public file.
Slide 2 contains our agenda, we will review our
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