RGC Resources(US:RGCO)2020-12-04 17:15Financial Data and Key Metrics Changes - The company reported an EPS increase of approximately 20% year-over-year to $1.30 per diluted share, driven by favorable utility margins and earnings from the MVP investment [7] - Operating income for fiscal 2020 increased by 8% to $12.5 million, primarily due to higher non-gas rates and increased transportation and interruptible volumes [9] - Net income for fiscal 2020 rose by $1.9 million or 21% compared to fiscal 2019 [9] Business Line Data and Key Metrics Changes - Total volumes delivered increased by 5% in fiscal 2020 despite a 5% overall warmer weather, with commercial and industrial volumes offsetting decreases in farm classes [5] - The non-cash equity earnings from RGC Midstream's investment in the Mountain Valley pipeline increased by 35% to approximately $1.3 million [8] Market Data and Key Metrics Changes - Customer growth continued with the addition of over 550 new customers per year since 2017, maintaining a growth rate of approximately 2% [4] - The pandemic has led to increased aging of accounts receivable, which is expected to continue through the winter heating season [13] Company Strategy and Development Direction - The company plans to invest $21.1 million in fiscal 2021 to renew, strengthen, and expand the Roanoke Gas distribution system, with a focus on SAVE Rider projects [12] - The MVP project has resumed limited construction and is targeting an in-service date during the second half of calendar 2021 [12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of customer and employee safety during the ongoing pandemic, with protocols in place to address operational challenges [13] - The company is actively analyzing delivered volumes at the individual customer level to adapt to changing conditions [13] Other Important Information - Capital spending for fiscal 2020 was $22.9 million, which included investments in system modernization and growth projects [6] Q&A Session Summary Question: Any dates to watch for MVP court activity? - Management indicated there are no specific dates at this time but noted recent activity in the Fourth Circuit Court of Appeals regarding permits [18] Question: Update on ConEd's ownership stake divestment? - Management confirmed no recent communication with ConEd regarding their ownership stake, which is expected to dilute over time as they limit contributions [19]