NASDAQ:RGCO RGC Resources Q1 2024 Earnings Report $20.85 -0.17 (-0.81%) Closing price 05/23/2025 04:00 PM EasternExtended Trading$20.88 +0.03 (+0.14%) As of 05/23/2025 04:04 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings History RGC Resources EPS ResultsActual EPS$0.50Consensus EPS $0.39Beat/MissBeat by +$0.11One Year Ago EPSN/ARGC Resources Revenue ResultsActual Revenue$24.42 millionExpected Revenue$31.00 millionBeat/MissMissed by -$6.58 millionYoY Revenue GrowthN/ARGC Resources Announcement DetailsQuarterQ1 2024Date2/5/2024TimeN/AConference Call DateWednesday, February 7, 2024Conference Call Time9:00AM ETUpcoming EarningsRGC Resources' Q3 2025 earnings is scheduled for Monday, August 4, 2025, with a conference call scheduled on Tuesday, August 5, 2025 at 4:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by RGC Resources Q1 2024 Earnings Call TranscriptProvided by QuartrFebruary 7, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning and thank you for joining us as we discuss RGC Resources Inc. 2024 First Quarter Results. I am Tommy Oliver, Senior Vice President, Regulatory and External Affairs for RGC Resources. I'm joined this morning by Paul Nestor, President and CEO of RGC Resources and Tim Mulvaney, our Treasurer and Chief Financial Officer. Let me review a few administrative items before we get started. Operator00:00:29We have muted all lines and 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. The conclusion of the presentation and our remarks, We will take questions. So let's transition to Slide 1. This presentation contains forecasts and projections. Operator00:00:58Slide 1 has information about risks and uncertainties, including forward looking statements that should be understood in the context of our public filings. Transition to 2. Slide 2 contains our agenda. We will review our quarterly operational and financial results and discuss the outlook for full year fiscal 2024 with time allotted for questions at the end. Turning to Slide 3. Operator00:01:28Main extensions for the quarter totaled just under a mile and we connected 185 service lines. Total customers were 63,219 at the end of the Q1. As we discussed in prior earnings calls, customer count for 2021, 2022 were impacted by the state mandated service disconnection moratorium that occurred during parts of 2020, 2021. When factoring this into our customer accounts for the prior 4 years shown in the graph on the right side of the slide, We have experienced steady growth over this period. Transition to Slide 4. Operator00:02:06Where Ard delivered gas volumes for the quarter, which were 9% lower compared to last fiscal year and this is attributable to warmer weather in the Q1 of 2020 for fiscal year. As shown on this slide, gas volumes were down in total, residential and commercial volumes were lower as a result of fewer heating degree days, but that was offset by a nice year over year industrial utilization increase as natural gas prices remain low. So let's turn to Slide 5. Our CapEx spending totaled $5,300,000 in the current quarter compared to $7,500,000 last year at this time. The decline is attributable to spending for the RNG facility last year it became operational in March of 2023. Operator00:02:53When one removes the effects of the RNG spending, the year over year variance approximately $500,000 spread across all categories. Paul will discuss the full year capital spending projection shortly. I'm now going to turn it over to Tim Mulvaney, our Treasurer and CFO, who will discuss our financial results. Tim? Speaker 100:03:13Thank you, Tommy. Moving to Slide 6. We had a strong quarter. 1st quarter operating income increased $1,000,000 or 20 percent to $6,700,000 compared to the Q1 of 2023. The increase was primarily driven by interim base rates that were implemented on January 1, 2023. Speaker 100:03:37Equity and net earnings of unconsolidated affiliates was $1,500,000 pretax due to non cash AFUDC, which resulted from our investment in the MVP. This AFUDC will taper off as construction on various sections is complete and will cease as the pipeline goes into service. Interest expense increased $268,000 due to the higher interest rate environment, which is impacting our floating rate debt supporting in the Mountain Valley Pipeline as well as the Roanoke Gas line of credit. Our net income for the quarter was 5,000,000 in the Q1 of this year compared to $3,300,000 in the same quarter a year ago. The combination of the rate case and the presence of the AFUDC from the MVP drove the strong results. Speaker 100:04:34EPS was $0.50 per share for the Q1 of this year compared to $0.33 per share in the quarter a year ago. I will now turn the presentation over to Paul Mester, RGC Resources' President and CEO for an outlook on 2024. Speaker 200:04:51Thank you, Tim. And I would like to just take a minute and have you join me in congratulating Tim. The Board appointed him as our permanent Treasurer and Chief Financial Officer last week and after serving in the interim role for about 5 months. So we're just delighted to have Tim with us. We are on Slide 7. Speaker 200:05:15I plan to touch on our capital spending projection for fiscal 2024, the status of the MVP project and our earnings forecast for the full fiscal year. But before we get to those items, I'm going to ask Tommy to come back on and provide us a regulatory update. Tommy? Certainly, Operator00:05:35Paul. As I mentioned on the last earnings call, we settled our then pending rate case with the Virginia staff and we're awaiting a final order from the commission. We received the final order in December of last year in which the commission accepted the settlement in full. Refunds to customers will be made in the Q2 of 2024 with no income statement impact to be made in accruals for the refunds in fiscal 2023. Unfortunately, like most consumers and businesses, we continue to experience upward expense pressure. Operator00:06:07As such, on February 2, we filed a general rate case the commission in which we are seeking an increase of $4,300,000 or approximately a 5% increase in total revenues. The increase includes a projected rate base and an increase in the authorized ROE, which reflects current capital markets. The $4,300,000 does not include any rolling of SAID capital as the new SAID plan became effective October 2023. Since this case was filed as a general rate case, we expect the commission to suspend the implementation date for interim rates until July 1, 2024. We'll know more about the schedule when the commission issues its order for notice and hearing for this case in early March. Operator00:06:51I'll turn it over to Paul now. Speaker 200:06:53Yes. Thank you, Tommy, for reviewing that. It's a little unusual if you know much about our history to So quickly file certainly a general rate case after just completing an expedited case. But again, the Overall inflationary environment, as Tommy said, we certainly know our customers and our vendors are feeling that as well, has led us to that action. Thanks to Tommy and Nick and the regulatory department for all their efforts on that. Speaker 200:07:25We're on Slide 8. The 2024 Roanoke Gas Capital Plan is still holding at about $21,000,000 which is again down from last year due to the aforementioned RNG project. The projection right now is very similar to what we shared with you on the December earnings call. Moving on to Slide 9, it has been an exciting several months on the MVP project. Weather in the fall period and into December was excellent in this region and it enabled really outstanding construction progress. Speaker 200:08:06The picture on Slide 9 is of our Summit View interconnect actually, that picture was taken in mid December. And we are working on both our Lafayette and Summit View interconnect sites simultaneously. We are on track for both of those sites and stations to be complete when Mountain Valley is complete and flowing natural gas. Mountain Valley still has some work to be done, of course, but we are genuinely happy to be nearing the end of this long what's turned into be a very long journey with the project. I think related to this and Tim mentioned it a little bit in his comments on the interest expense. Speaker 200:08:51Tim, do you mind taking a moment and providing a brief update on our financing activities for our RGC Midstream subsidiary? Speaker 100:09:01Sure, Paul. We have 2 facilities related to RGC Midstream that come due this year totaling approximately $33,000,000 And we've begun discussions with our banks and those discussions have been very positive. We fully expect to renew the facilities in the coming months. Speaker 200:09:20Yes, fantastic. Again, a lot of good effort there. And I'll just make a comment. Those of you that are in project work or construction work or partnership, you know that sometimes the secret to success is good partners or great partners. And I will tell you that not only is the joint venture been a group of great partners, but our financing partners now over many years have been excellent too. Speaker 200:09:53Our consolidated earnings guidance on Slide 10 for 2024 is also unchanged from what we shared with you in December. Again, we talked on that call about the inflationary pressures weighing on the year over year earnings per share and as Tommy just updated us, we're addressing that to the most expedient extent possible through the general rate case filing. Maybe just in summary, we're off to a great start. We've had a fantastic first quarter. I am really happy about the direction and trajectory of the company. Speaker 200:10:39Right now, We continue to work safely and do everything we can to meet the customers' needs and I'm just so happy about that. With that, that concludes our prepared remarks. If you have questions, please dial Speaker 300:11:19Good morning, everyone. Speaker 200:11:23Good morning, Mike. How are you? Speaker 300:11:25Doing fine, sir. Yourself? Speaker 200:11:28We are doing very well. It's a beautiful, cool, sunny morning here in the Greater Roanoke Valley. Speaker 300:11:37I saw that. I was looking at your weather there. It was supposed to warm up, but it looks like it's going to That seems to be changing a little bit. Anyway, on your rate case filings, you're in good company. I've never seen so many rate cases filed by utilities in my entire career, and they're all coming relatively close So you're in a good company. Speaker 300:12:01I don't think it's going to be a surprise for the commission. I'm seeing it on the water side, the gas and the electric side. Just wondering when you think that might be finalized that we looked in October November timeframe? Speaker 200:12:16Yes, Mike, I'll let Tommy answer the specifics of the timing there, but I'll just make a comment. I know we shared this with our Board and our employees and even in fact some of our customers. But the inflationary pressures over the last 24 months are unlike any I've seen in my professional career. So your comment about the other companies also having to be at the table rate making Does make complete sense. With that, Tommy, maybe you want to talk about the schedule a little bit? Operator00:12:49Sure, Mike. Unlike the prior case that's resolved as an expedited case, this is a general case, so the scope is a little broader. So we're expecting this the process to play out over a 12 month to 15 month period. Okay. Final resolution until Q1 of 2025 or 1st calendar quarter 2025. Speaker 300:13:14Got it. And then with Mountain Valley coming online, Paul, just wondering what you're thinking in terms of how much of your actual gas supply for Roanoke gas you're actually going to pull from that line? Speaker 200:13:32Yes. So Mike, presently, And this is public knowledge. We're signed up for 10,000 dekatherms a day and that represents approximately 15% of our firm supply and again that's just a starting point. So it is meaningful. And as you know, natural gas supply and natural gas distribution, it's those incremental dekatherms that are especially meaningful. Speaker 200:14:07So we're Really looking forward to the 10,000 a day coming online and coming into the system. We've discussed this in our filings and in hearings and support letters over the years to FERC and the courts and others. The ability to have Marcellus and Utica Basin gas flowing through Mountain Valley into our system is just a wonderful opportunity. It is, as you know, approximately the cheapest natural gas in the world and the ability to bring that into this region and what that means for economic development is truly something that we're excited about. Speaker 300:14:53Is there an upper limit kind of a capital as to how much you would actually take off that line of your total supply? Speaker 200:15:02Yes, that's a good question, Mike. As you know, it's going to transport 2 Bcf a day, have the capacity to transport that much gas ultimately. That entire 2 Bcf is spoken for or reserved, if you will, at this time. Certainly, if we had economic development that require more natural gas. We would do everything in our power to make that happen, but it would require some contract work presently. Operator00:15:37Okay. Speaker 300:15:38And then last question, Southgate, noticed the size of the pipe was increased. Wondering where that process stands in terms of timing and when that really gets going? Speaker 200:15:52Yes. I think the joint venture partners that are part of Southgate made an announcement in December in that regard that included a change in the scoping of the project. And I believe, if I remember correctly, Mike, I think the timing of that was late 2027, early 2028 calendar years, I believe. So Certainly looking forward to the main line getting completed and in service and hopefully some of the process for Southgate will ramp up at that point. Speaker 300:16:36All right. That's all I had gentlemen. Thank you. Speaker 200:16:40Thank you. Do we have any other Questions from anyone on the line. We'll wait just a few more seconds in case there's another question. Anybody have a question? 1 to unmute your line. Speaker 200:17:14All right. Well, if there are no more questions, this concludes our Q1 earnings call. We do appreciate everyone taking time out of their busy schedule to join us, and we are looking forward to speaking with you again in the same time frame as we discuss our fiscal second quarter results.Read morePowered by Key Takeaways RGC extended just under one mile of main lines and connected 185 service lines in Q1, ending with 63,219 customers and showing steady growth after pandemic moratoria. Quarterly gas volumes were 9% lower year-over-year due to warmer weather reducing residential and commercial heating demand, partly offset by higher industrial utilization amid low natural gas prices. First quarter operating income rose 20% to $6.7 million and net income increased to $5 million (EPS $0.50 vs. $0.33), driven by interim base rate implementation and non-cash AFUDC from the Mountain Valley Pipeline investment. RGC filed a general rate case seeking a $4.3 million (approximately 5%) revenue increase to address inflationary pressures, with a projected implementation date of July 1, 2024 and a final decision in early 2025. The Mountain Valley Pipeline project is nearing completion, positioning RGC to receive 10,000 dekatherms per day (about 15% of its firm supply), and RGC Midstream is in positive discussions to renew $33 million in financing facilities. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallRGC Resources Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) RGC Resources Earnings HeadlinesRGC Resources (NASDAQ:RGCO) Upgraded to "Buy" at StockNews.comMay 20, 2025 | americanbankingnews.comRGC Resources Updates Investor PresentationMay 19, 2025 | tipranks.com[INSIDE] Elon’s Next Move Could Send This AI Stock SoaringMissed Nvidia? This Under-the-Radar AI Stock Could Be Next Musk's AI empire is just beginning — and one overlooked company could be at the center of it all. We reveal everything in this exclusive Memorial Day webinar.May 24, 2025 | Behind the Markets (Ad)While institutions own 38% of RGC Resources, Inc. (NASDAQ:RGCO), retail investors are its largest shareholders with 42% ownershipMay 12, 2025 | finance.yahoo.comRGC Resources Inc (RGCO) Q2 2025 Earnings Call Highlights: Strong Net Income Growth and ...May 9, 2025 | finance.yahoo.comRGC Resources, Inc. (RGCO) Q2 2025 Earnings Call TranscriptMay 9, 2025 | seekingalpha.comSee More RGC Resources Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like RGC Resources? Sign up for Earnings360's daily newsletter to receive timely earnings updates on RGC Resources and other key companies, straight to your email. Email Address About RGC ResourcesRGC Resources (NASDAQ:RGCO), through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,179 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates six metering stations. In addition, it produces biogas. 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There are 4 speakers on the call. Operator00:00:00Good morning and thank you for joining us as we discuss RGC Resources Inc. 2024 First Quarter Results. I am Tommy Oliver, Senior Vice President, Regulatory and External Affairs for RGC Resources. I'm joined this morning by Paul Nestor, President and CEO of RGC Resources and Tim Mulvaney, our Treasurer and Chief Financial Officer. Let me review a few administrative items before we get started. Operator00:00:29We have muted all lines and 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. The conclusion of the presentation and our remarks, We will take questions. So let's transition to Slide 1. This presentation contains forecasts and projections. Operator00:00:58Slide 1 has information about risks and uncertainties, including forward looking statements that should be understood in the context of our public filings. Transition to 2. Slide 2 contains our agenda. We will review our quarterly operational and financial results and discuss the outlook for full year fiscal 2024 with time allotted for questions at the end. Turning to Slide 3. Operator00:01:28Main extensions for the quarter totaled just under a mile and we connected 185 service lines. Total customers were 63,219 at the end of the Q1. As we discussed in prior earnings calls, customer count for 2021, 2022 were impacted by the state mandated service disconnection moratorium that occurred during parts of 2020, 2021. When factoring this into our customer accounts for the prior 4 years shown in the graph on the right side of the slide, We have experienced steady growth over this period. Transition to Slide 4. Operator00:02:06Where Ard delivered gas volumes for the quarter, which were 9% lower compared to last fiscal year and this is attributable to warmer weather in the Q1 of 2020 for fiscal year. As shown on this slide, gas volumes were down in total, residential and commercial volumes were lower as a result of fewer heating degree days, but that was offset by a nice year over year industrial utilization increase as natural gas prices remain low. So let's turn to Slide 5. Our CapEx spending totaled $5,300,000 in the current quarter compared to $7,500,000 last year at this time. The decline is attributable to spending for the RNG facility last year it became operational in March of 2023. Operator00:02:53When one removes the effects of the RNG spending, the year over year variance approximately $500,000 spread across all categories. Paul will discuss the full year capital spending projection shortly. I'm now going to turn it over to Tim Mulvaney, our Treasurer and CFO, who will discuss our financial results. Tim? Speaker 100:03:13Thank you, Tommy. Moving to Slide 6. We had a strong quarter. 1st quarter operating income increased $1,000,000 or 20 percent to $6,700,000 compared to the Q1 of 2023. The increase was primarily driven by interim base rates that were implemented on January 1, 2023. Speaker 100:03:37Equity and net earnings of unconsolidated affiliates was $1,500,000 pretax due to non cash AFUDC, which resulted from our investment in the MVP. This AFUDC will taper off as construction on various sections is complete and will cease as the pipeline goes into service. Interest expense increased $268,000 due to the higher interest rate environment, which is impacting our floating rate debt supporting in the Mountain Valley Pipeline as well as the Roanoke Gas line of credit. Our net income for the quarter was 5,000,000 in the Q1 of this year compared to $3,300,000 in the same quarter a year ago. The combination of the rate case and the presence of the AFUDC from the MVP drove the strong results. Speaker 100:04:34EPS was $0.50 per share for the Q1 of this year compared to $0.33 per share in the quarter a year ago. I will now turn the presentation over to Paul Mester, RGC Resources' President and CEO for an outlook on 2024. Speaker 200:04:51Thank you, Tim. And I would like to just take a minute and have you join me in congratulating Tim. The Board appointed him as our permanent Treasurer and Chief Financial Officer last week and after serving in the interim role for about 5 months. So we're just delighted to have Tim with us. We are on Slide 7. Speaker 200:05:15I plan to touch on our capital spending projection for fiscal 2024, the status of the MVP project and our earnings forecast for the full fiscal year. But before we get to those items, I'm going to ask Tommy to come back on and provide us a regulatory update. Tommy? Certainly, Operator00:05:35Paul. As I mentioned on the last earnings call, we settled our then pending rate case with the Virginia staff and we're awaiting a final order from the commission. We received the final order in December of last year in which the commission accepted the settlement in full. Refunds to customers will be made in the Q2 of 2024 with no income statement impact to be made in accruals for the refunds in fiscal 2023. Unfortunately, like most consumers and businesses, we continue to experience upward expense pressure. Operator00:06:07As such, on February 2, we filed a general rate case the commission in which we are seeking an increase of $4,300,000 or approximately a 5% increase in total revenues. The increase includes a projected rate base and an increase in the authorized ROE, which reflects current capital markets. The $4,300,000 does not include any rolling of SAID capital as the new SAID plan became effective October 2023. Since this case was filed as a general rate case, we expect the commission to suspend the implementation date for interim rates until July 1, 2024. We'll know more about the schedule when the commission issues its order for notice and hearing for this case in early March. Operator00:06:51I'll turn it over to Paul now. Speaker 200:06:53Yes. Thank you, Tommy, for reviewing that. It's a little unusual if you know much about our history to So quickly file certainly a general rate case after just completing an expedited case. But again, the Overall inflationary environment, as Tommy said, we certainly know our customers and our vendors are feeling that as well, has led us to that action. Thanks to Tommy and Nick and the regulatory department for all their efforts on that. Speaker 200:07:25We're on Slide 8. The 2024 Roanoke Gas Capital Plan is still holding at about $21,000,000 which is again down from last year due to the aforementioned RNG project. The projection right now is very similar to what we shared with you on the December earnings call. Moving on to Slide 9, it has been an exciting several months on the MVP project. Weather in the fall period and into December was excellent in this region and it enabled really outstanding construction progress. Speaker 200:08:06The picture on Slide 9 is of our Summit View interconnect actually, that picture was taken in mid December. And we are working on both our Lafayette and Summit View interconnect sites simultaneously. We are on track for both of those sites and stations to be complete when Mountain Valley is complete and flowing natural gas. Mountain Valley still has some work to be done, of course, but we are genuinely happy to be nearing the end of this long what's turned into be a very long journey with the project. I think related to this and Tim mentioned it a little bit in his comments on the interest expense. Speaker 200:08:51Tim, do you mind taking a moment and providing a brief update on our financing activities for our RGC Midstream subsidiary? Speaker 100:09:01Sure, Paul. We have 2 facilities related to RGC Midstream that come due this year totaling approximately $33,000,000 And we've begun discussions with our banks and those discussions have been very positive. We fully expect to renew the facilities in the coming months. Speaker 200:09:20Yes, fantastic. Again, a lot of good effort there. And I'll just make a comment. Those of you that are in project work or construction work or partnership, you know that sometimes the secret to success is good partners or great partners. And I will tell you that not only is the joint venture been a group of great partners, but our financing partners now over many years have been excellent too. Speaker 200:09:53Our consolidated earnings guidance on Slide 10 for 2024 is also unchanged from what we shared with you in December. Again, we talked on that call about the inflationary pressures weighing on the year over year earnings per share and as Tommy just updated us, we're addressing that to the most expedient extent possible through the general rate case filing. Maybe just in summary, we're off to a great start. We've had a fantastic first quarter. I am really happy about the direction and trajectory of the company. Speaker 200:10:39Right now, We continue to work safely and do everything we can to meet the customers' needs and I'm just so happy about that. With that, that concludes our prepared remarks. If you have questions, please dial Speaker 300:11:19Good morning, everyone. Speaker 200:11:23Good morning, Mike. How are you? Speaker 300:11:25Doing fine, sir. Yourself? Speaker 200:11:28We are doing very well. It's a beautiful, cool, sunny morning here in the Greater Roanoke Valley. Speaker 300:11:37I saw that. I was looking at your weather there. It was supposed to warm up, but it looks like it's going to That seems to be changing a little bit. Anyway, on your rate case filings, you're in good company. I've never seen so many rate cases filed by utilities in my entire career, and they're all coming relatively close So you're in a good company. Speaker 300:12:01I don't think it's going to be a surprise for the commission. I'm seeing it on the water side, the gas and the electric side. Just wondering when you think that might be finalized that we looked in October November timeframe? Speaker 200:12:16Yes, Mike, I'll let Tommy answer the specifics of the timing there, but I'll just make a comment. I know we shared this with our Board and our employees and even in fact some of our customers. But the inflationary pressures over the last 24 months are unlike any I've seen in my professional career. So your comment about the other companies also having to be at the table rate making Does make complete sense. With that, Tommy, maybe you want to talk about the schedule a little bit? Operator00:12:49Sure, Mike. Unlike the prior case that's resolved as an expedited case, this is a general case, so the scope is a little broader. So we're expecting this the process to play out over a 12 month to 15 month period. Okay. Final resolution until Q1 of 2025 or 1st calendar quarter 2025. Speaker 300:13:14Got it. And then with Mountain Valley coming online, Paul, just wondering what you're thinking in terms of how much of your actual gas supply for Roanoke gas you're actually going to pull from that line? Speaker 200:13:32Yes. So Mike, presently, And this is public knowledge. We're signed up for 10,000 dekatherms a day and that represents approximately 15% of our firm supply and again that's just a starting point. So it is meaningful. And as you know, natural gas supply and natural gas distribution, it's those incremental dekatherms that are especially meaningful. Speaker 200:14:07So we're Really looking forward to the 10,000 a day coming online and coming into the system. We've discussed this in our filings and in hearings and support letters over the years to FERC and the courts and others. The ability to have Marcellus and Utica Basin gas flowing through Mountain Valley into our system is just a wonderful opportunity. It is, as you know, approximately the cheapest natural gas in the world and the ability to bring that into this region and what that means for economic development is truly something that we're excited about. Speaker 300:14:53Is there an upper limit kind of a capital as to how much you would actually take off that line of your total supply? Speaker 200:15:02Yes, that's a good question, Mike. As you know, it's going to transport 2 Bcf a day, have the capacity to transport that much gas ultimately. That entire 2 Bcf is spoken for or reserved, if you will, at this time. Certainly, if we had economic development that require more natural gas. We would do everything in our power to make that happen, but it would require some contract work presently. Operator00:15:37Okay. Speaker 300:15:38And then last question, Southgate, noticed the size of the pipe was increased. Wondering where that process stands in terms of timing and when that really gets going? Speaker 200:15:52Yes. I think the joint venture partners that are part of Southgate made an announcement in December in that regard that included a change in the scoping of the project. And I believe, if I remember correctly, Mike, I think the timing of that was late 2027, early 2028 calendar years, I believe. So Certainly looking forward to the main line getting completed and in service and hopefully some of the process for Southgate will ramp up at that point. Speaker 300:16:36All right. That's all I had gentlemen. Thank you. Speaker 200:16:40Thank you. Do we have any other Questions from anyone on the line. We'll wait just a few more seconds in case there's another question. Anybody have a question? 1 to unmute your line. Speaker 200:17:14All right. Well, if there are no more questions, this concludes our Q1 earnings call. We do appreciate everyone taking time out of their busy schedule to join us, and we are looking forward to speaking with you again in the same time frame as we discuss our fiscal second quarter results.Read morePowered by