RGC Resources(US:RGCO)2025-12-04 15:02Financial Data and Key Metrics Changes - The company reported a net loss of $204,000 or $0.02 per share in Q4 2025, compared to a net income of $141,000 or $0.01 per share in the same quarter of the previous year [6][7] - For the full fiscal year 2025, net income was $13.3 million or $1.29 per share, a 15% increase from $11.8 million or $1.16 per share in fiscal 2024 [7][8] - Total capital expenditures (CapEx) for fiscal 2025 were $20.7 million, down 6% from the previous year [5][6] Business Line Data and Key Metrics Changes - The company installed nearly five main miles, which is 50% higher than the total main miles installed in fiscal 2024, and connected over 700 new services compared to approximately 630 in fiscal 2024 [2][3] - Delivered gas volumes increased by 8% in Q4 2025 compared to Q4 2024, with total volumes moving up 14% year-over-year due to colder weather and increased industrial consumption [4][5] Market Data and Key Metrics Changes - The average customer count is expected to reach approximately 65,000 by the end of the second quarter, despite seasonal disconnections [3] - Heating degree days increased by 18%, contributing to the record level of gas delivery [5] Company Strategy and Development Direction - The company is optimistic about continued customer growth in the Roanoke Valley, with a focus on healthcare and medical sector expansions [10][11] - The company filed an expedited rate case seeking a $4.3 million increase in annual revenues, expected to take effect on January 1, 2026, subject to commission review [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged inflationary pressures and higher expenses but expressed confidence in managing these challenges [6][18] - The company anticipates a more challenging fiscal 2026 compared to 2025, with a wider earnings per share guidance range due to uncertainties in volume deliveries and weather [18][19] Other Important Information - The company refinanced debt supporting its investment in the Mountain Valley Pipeline (MVP) to extend maturity to 2032 [8] - A dividend increase of $0.04 per share was authorized, reflecting strong earnings in 2025 [18] Q&A Session Summary Question: How is the weather tracking compared to last year? - Management noted that October had unusual weather patterns, but colder weather has set in recently, which is expected to positively impact gas volumes [21][22] Question: Any capital requirements from the company for EVP projects in 2026? - The CFO indicated that funding for the Boost and Southgate projects would come from refinancing, with expected investments totaling $4-$5 million over the next several years [23] Question: Updates on data centers and Google's investment in the region? - Management highlighted ongoing interest and discussions regarding data centers in Southwest Virginia, with expectations for more announcements from Google in 2026 [25][26]