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) 777-3997 |
