RGC Resources, Inc. Reports 2024 Earnings
Rhea-AI Summary
RGC Resources reported consolidated earnings of $11.76 million ($1.16 per share) for fiscal year 2024, up from $11.30 million ($1.14 per share) in 2023. The increase was driven by higher earnings from the Mountain Valley Pipeline (MVP) investment, which began service in June 2024. Despite lower natural gas costs reducing customer bills and revenues, the company secured a settlement for a $4.08 million annual revenue increase. However, Q4 2024 net income decreased to $140,822 ($0.01 per share) from $1.01 million ($0.10 per share) in Q4 2023, due to lower MVP earnings and higher interest expenses.
Positive
- Annual earnings increased to $11.76 million from $11.30 million YoY
- Mountain Valley Pipeline successfully placed in service in June 2024
- Secured settlement for $4.08 million annual revenue increase pending approval
Negative
- Q4 2024 net income declined 86% to $140,822 from $1.01 million YoY
- Higher interest expenses impacting profitability
- Lower revenues due to reduced natural gas costs
News Market Reaction – RGCO
On the day this news was published, RGCO declined 1.61%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
ROANOKE, Va., Nov. 13, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of
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
Net income for the quarter ended September 30, 2024 was
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 |
