RGC Resources(US:RGCO)2023-02-08 21:02Revenue and Pricing - Total operating revenues for the three months ended December 31, 2022, increased by 43% to $33,282,335 compared to $23,263,080 in the same period last year, driven by higher natural gas prices and increased deliveries [123]. - The average natural gas commodity price during the quarter was over $7.00 per dekatherm, compared to $3.80 per dekatherm in the corresponding quarter last year [123]. - Total ICC revenues increased by approximately $194,000 for the three-month period ended December 31, 2022, due to significantly higher natural gas commodity prices [118]. - Residential and commercial natural gas deliveries rose by 27% to 2,433,239 DTH, while total delivered volumes increased by 23% to 3,308,540 DTH [123]. Expenses and Income - Operations and maintenance expenses increased by $230,199, or 6%, primarily due to higher compensation costs and contracted services [125]. - The Company’s net income decreased by $328,124 for the three months ended December 31, 2022, as higher operating and interest expenses offset increased revenues [122]. - Equity in earnings of unconsolidated affiliates decreased by $70,895 due to the absence of construction activities during the quarter [127]. - Other income decreased by $247,833, or 77%, primarily due to a $377,000 increase in non-service cost components of net periodic benefit costs [128]. - Interest expense increased by $264,308, or 24%, with the weighted-average interest rate on total debt rising from 2.93% to 3.78% [129]. - Income tax expense decreased by $88,850, or 8%, with an effective tax rate of 23.4% for the three months ended December 31, 2022 [131]. Cash Flow and Financing - Cash and cash equivalents decreased by $1,664,722 for the three-month period ended December 31, 2022, compared to an increase of $233,557 for the same period in 2021 [156]. - Net cash used in operating activities was $(2,424,401) for the three months ended December 31, 2022, compared to $(3,544,766) for the same period in 2021 [156]. - Net cash flows provided by financing activities were $9.1 million for the three months ended December 31, 2022, down from $11.6 million in the same period last year [161]. - Roanoke Gas increased net borrowing under its line-of-credit by $7.4 million during the current fiscal quarter to support working capital needs [161]. - Management believes Roanoke Gas has sufficient financing resources to meet cash requirements for the next year, including access to line-of-credit and private shelf facilities [163]. Capital Expenditures and Projects - Total capital expenditures for the three months ended December 31, 2022, were approximately $7.5 million, up from $5.7 million during the same period last year, with fiscal 2023 expected to be in the $20 million range [160]. - The MVP project has a targeted total project cost of approximately $6.6 billion, excluding AFUDC [142]. - Midstream requires between $15 million and $18 million in additional capital over the next 12 to 24 months for MVP construction resuming in 2023 [164]. - The company expects to start commissioning the RNG facility in the third quarter of fiscal 2023 [151]. - The company anticipates filing for a new SAVE Plan and SAVE Rider in the third quarter of fiscal 2023 [150]. Weather and Refunds - The WNA mechanism resulted in accrued refunds of approximately $187,000 for weather that was 3% colder than normal, compared to $1,244,000 in additional revenues for weather that was 22% warmer than normal in the previous year [117]. - The company experienced a significant over-recovery of gas costs in December due to a decline in commodity prices, leading to adjustments in the PGA rate [159]. - The company refunded approximately $683,000 in supplier refunds during the current quarter, compared to $414,000 received from suppliers in the same period last year [159]. Accounts Receivable - Accounts receivable increased by $15,967,191 compared to a decrease of $7,105,030 in the previous year, reflecting higher natural gas prices and colder weather [159].