RGC Resources(US:RGCO)2022-05-11 16:48Financial Data and Key Metrics Changes - For Q2 2022, operating income was $7.4 million, a 4.8% increase from Q2 2021, reflecting an improvement of $344,000 [7] - The overall net loss for Q2 2022 was impacted by a $29.6 million noncash impairment related to the Mountain Valley pipeline investment [7] - For the 12 months ending March 31, 2022, operating income was $14.9 million, a 14% increase compared to the prior year [9] - Underlying net income for Q2 2022, after adjusting for impairment, was $5.1 million, a 6.5% increase from the prior year [10] - The 12-month underlying net income was $9.3 million, reflecting a decrease of $1.1 million from the previous year due to reduced equity earnings from the MVP [11] Business Line Data and Key Metrics Changes - Roanoke Gas, the core business, continues to serve 63,000 customers in the greater Roanoke Valley [4] - Capital expenditures for utility property in the first half of fiscal 2022 totaled $10.76 million, a 20% increase from the previous year [12] - Delivered volumes for Q2 2022 were 4.2 million dekatherms, a 5.6% increase from Q2 2021, driven by a 26% increase in industrial customer consumption [13] Market Data and Key Metrics Changes - Year-to-date volumes were 1% higher than the first six months of 2021, despite warmer weather [14] - The company noted that the increase in industrial customer deliveries offset the decline in residential customer deliveries due to weather [14] Company Strategy and Development Direction - The company expects capital spending to be approximately $24.5 million in the second half of fiscal 2022, with a slight shift from new business to maintenance spending [15][16] - The company continues to support the Mountain Valley pipeline project, emphasizing its importance for domestic supply constraints and the broader market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed concern over elevated natural gas costs due to legal challenges facing the Mountain Valley pipeline, which they believe impacts both businesses and residential customers [18][19] - The company anticipates underlying earnings for fiscal 2022 to be in the range of $0.96 to $1.02 per share [21] - The company announced a $27 million common stock equity placement, which is expected to have an effect of approximately $0.10 per share for the full fiscal year [22] Other Important Information - The expected quarterly dividend remains unchanged, with an implied payout ratio in the 80% range, which management considers comfortable based on cash earnings [23] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without further inquiries [25]