RGC RESOURCES INC Q1 FY2025 earnings call

• Main extensions and renewal activity in Q1 2025 were strong: 1.1 main miles installed, 197 new services connected, and 65 services renewed. - Delivered gas volumes up 16% due to a transportation customer's increased natural gas consumption and residential/small commercial volumes up 4% from more heating degree days. - CapEx in Q1 2025 was $5.7 million, up 8.4% from 2024, with good weather enabling progress on mains and services. - Net income improved, but equity earnings from unconsolidated affiliates decreased. - Rate case update: Hearing examiner recommended adoption of stipulation reached in October, with stipulated revenue requirement increase based on projections through June 2025. - System performed magnificently during historically cold January with no customer outages, due to investment in modernizing the system.

Delivered gas volumes for the quarter were up 16% compared to Q1 2024, with total volumes increasing due to a transportation customer switching to natural gas and residential/small commercial volumes up 4% from a 10% increase in heating degree days. CapEx for Q1 2025 was $5.7 million, up 8.4% from 2024. Net income was $5.3 million or $0.51 per share in Q1 2025, compared to $5 million or $0.50 per share in Q1 2024. Equity in earnings of unconsolidated affiliates was $854,000 pre-tax in Q1 2025 vs $1.5 million in Q1 2024.

• Total year capital spending remains at $21.6 million, expected to be in the $21.5 to $22 million range for fiscal 2025. - EPS forecast remains in the range of $1.18 to $1.25 for 2025. - Optimism about growth opportunities in the Roanoke region despite national/global uncertainties.

• Economic uncertainty due to recent presidential administration changes causing pause on some things and sizing up economic implications. - Potential inflationary effects from actions being taken. - Federal Reserve's cautious wait-and-see attitude regarding interest rates.

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