Q4 2025 RGC Resources Inc Earnings Call

December 4, 2025

Mhm.

Tommy Oliver: Good morning, and thank you for joining us as we discuss RGC Resources 2025 Q4 and year-end results. I am Tommy Oliver, Senior VP, Regulatory and External Affairs for RGC Resources Inc. I'm joined this morning by Paul Nester, President and CEO of RGC Resources, and Tim Mulvaney, our VP, Treasurer, and Chief Financial Officer. But before we get started, I want to review a few administrative items. One, we have muted all lines and ask that all participants remain muted.

Tommy Oliver: Two, the link to today's presentation is available on the investor and financial information page of our website at www.rgcresources.com. Lastly, at the conclusion of the presentation and our remarks, we will take questions. Let's turn to slide one. This presentation contains estimates and projections. Slide one has information about risks and uncertainties, including forward-looking statements that should be understood in the context of our public filings. Slide two contains our agenda. We will discuss our operational and financial highlights for the fourth quarter, and our 2025 fiscal year. We will then provide an outlook for the 2026 fiscal year with time allotted for questions at the end. Let's get started on slide three. We had a very strong year for main extensions. In addition, renewal activity was steady during the fiscal 2025 year. Residential growth in the Roanoke Valley has not abated.

Two, the link to today's presentation is available on the investor and financial information page of our website at www.rgcresources.com. Lastly, at the conclusion of the presentation and our remarks, we will take questions. Let's turn to slide one. This presentation contains estimates and projections. Slide one has information about risks and uncertainties, including forward-looking statements that should be understood in the context of our public filings. Slide two contains our agenda. We will discuss our operational and financial highlights for the fourth quarter, and our 2025 fiscal year. We will then provide an outlook for the 2026 fiscal year with time allotted for questions at the end. Let's get started on slide three. We had a very strong year for main extensions. In addition, renewal activity was steady during the fiscal 2025 year. Residential growth in the Roanoke Valley has not abated.

Tommy Oliver: We installed nearly five main miles, which is 50% higher than the total main miles installed in fiscal 2024. We also connected more than 700 new services. This compares to customer additions in fiscal 2024 of approximately 630 and fiscal year 2023 adds of approximately 550. Those that dive into our year-over-year customer count will notice that our average customer count increases slower than the actual add cited above. This is due to the nature of our business. We routinely have customers that use natural gas exclusively to heat their homes, disconnect their service, or will not pay their bills and will be disconnected through the collections process once spring weather arrives. This past spring, we had over 1,500 customers disconnect, many of which are now returning to the system with the onset of cold weather. In fact, we have reconnected over 500 customers since October.

We installed nearly five main miles, which is 50% higher than the total main miles installed in fiscal 2024. We also connected more than 700 new services. This compares to customer additions in fiscal 2024 of approximately 630 and fiscal year 2023 adds of approximately 550. Those that dive into our year-over-year customer count will notice that our average customer count increases slower than the actual add cited above. This is due to the nature of our business. We routinely have customers that use natural gas exclusively to heat their homes, disconnect their service, or will not pay their bills and will be disconnected through the collections process once spring weather arrives. This past spring, we had over 1,500 customers disconnect, many of which are now returning to the system with the onset of cold weather. In fact, we have reconnected over 500 customers since October.

Tommy Oliver: By the end of the second quarter, we expect our customer count to be approximately 65,000 customers. Focusing on the right side of the slide, our system safety and reliability is always a high priority. Through our SAVE program, we renewed 4.2 miles of main and nearly 350 services during the fiscal 2025 period. Transitioning to slide four, we delivered record volumes of gas in fiscal 2025. However, I will come back to that in a moment, as slide four shows delivered gas volumes for the quarter. Total volumes increased 8% compared to the fourth quarter of 2024. One industrial customer with fuel switching capability continued their higher natural gas consumption this year, as we have discussed in previous quarters. Residential and commercial volumes were slightly up when compared to the same quarter in the prior year. Slide five.

By the end of the second quarter, we expect our customer count to be approximately 65,000 customers. Focusing on the right side of the slide, our system safety and reliability is always a high priority. Through our SAVE program, we renewed 4.2 miles of main and nearly 350 services during the fiscal 2025 period. Transitioning to slide four, we delivered record volumes of gas in fiscal 2025. However, I will come back to that in a moment, as slide four shows delivered gas volumes for the quarter. Total volumes increased 8% compared to the fourth quarter of 2024. One industrial customer with fuel switching capability continued their higher natural gas consumption this year, as we have discussed in previous quarters. Residential and commercial volumes were slightly up when compared to the same quarter in the prior year. Slide five.

Tommy Oliver: The combination of that same industrial customer along with a few other customers, combined with colder weather, also as discussed on previous calls, enabled us to achieve a new gas delivery record. With heating degree days up 18%, total volumes moved up 14% compared to last year. This record level of gas delivery outstripped our prior annual record throughput set in 2021. Slide six shows full year CapEx. Total spending was $20.7 million in the current year, down 6% compared to the 2024 fiscal year. However, recall that in 2024, we spent approximately $3.2 million to complete the MVP interconnections, which enables us to grow our system in Franklin County. We did not have that kind of one-time expenditure in fiscal 2025, but continue to invest in extending and renewing our system as noted above.

The combination of that same industrial customer along with a few other customers, combined with colder weather, also as discussed on previous calls, enabled us to achieve a new gas delivery record. With heating degree days up 18%, total volumes moved up 14% compared to last year. This record level of gas delivery outstripped our prior annual record throughput set in 2021. Slide six shows full year CapEx. Total spending was $20.7 million in the current year, down 6% compared to the 2024 fiscal year. However, recall that in 2024, we spent approximately $3.2 million to complete the MVP interconnections, which enables us to grow our system in Franklin County. We did not have that kind of one-time expenditure in fiscal 2025, but continue to invest in extending and renewing our system as noted above.

Tommy Oliver: We will provide our outlook for CapEx as we discuss fiscal 2026 later in this presentation. I will now turn the presentation over to our CFO, Tim Mulvaney, to review our financial results and to comment on the consummation of the financing that we told you about at the end of Q3. Tim? Thank you, Tommy. Turning to slide seven now, we experienced a slight loss in the current quarter. The Q4 is traditionally seasonally weaker for us, and we had higher expenses than the same period a year earlier as inflation, while lower, is still present. This resulted in a net loss of $204,000 or $0.02 per share compared to net income in the same quarter a year ago of $141,000 or $0.01 per share. We will touch on our plans to deal with higher expenses in the outlook section.

We will provide our outlook for CapEx as we discuss fiscal 2026 later in this presentation. I will now turn the presentation over to our CFO, Tim Mulvaney, to review our financial results and to comment on the consummation of the financing that we told you about at the end of Q3. Tim?

Timothy Mulvaney: Thank you, Tommy. Turning to slide seven now, we experienced a slight loss in the current quarter. The Q4 is traditionally seasonally weaker for us, and we had higher expenses than the same period a year earlier as inflation, while lower, is still present. This resulted in a net loss of $204,000 or $0.02 per share compared to net income in the same quarter a year ago of $141,000 or $0.01 per share. We will touch on our plans to deal with higher expenses in the outlook section.

Tommy Oliver: One item present in both periods were gains of approximately $0.06 per share each year related to donations from the local housing authority as we converted master-meter arrangements into system assets to improve reliability and safety for customers. This will not recur in 2026. Year-to-date results are also shown on slide seven. Our performance for the year was outstanding. Net income for fiscal 2025 was $13.3 million or $1.29 per share, an increase of 15% from fiscal 2024's $11.8 million or $1.16 per share. The strong increase reflected the record levels of gas deliveries that Tommy discussed and was aided by higher operating margins, partially offset by inflationary cost increases and lower equity earnings from the company's investment in the Mountain Valley Pipeline. MVP's equity earnings for the first three quarters of fiscal 2024 contained significant amounts of AFUDC.

One item present in both periods were gains of approximately $0.06 per share each year related to donations from the local housing authority as we converted master-meter arrangements into system assets to improve reliability and safety for customers. This will not recur in 2026. Year-to-date results are also shown on slide seven. Our performance for the year was outstanding. Net income for fiscal 2025 was $13.3 million or $1.29 per share, an increase of 15% from fiscal 2024's $11.8 million or $1.16 per share. The strong increase reflected the record levels of gas deliveries that Tommy discussed and was aided by higher operating margins, partially offset by inflationary cost increases and lower equity earnings from the company's investment in the Mountain Valley Pipeline. MVP's equity earnings for the first three quarters of fiscal 2024 contained significant amounts of AFUDC.

Hey.

Tommy Oliver: Moving to slide eight, we ended the year with a strong balance sheet. During the fourth quarter, we refinanced the debt that supports our investment in MVP for the long term. We have disclosed the details in our investor communications in September and in note seven of our Form 10-K that was filed yesterday. All of these documents can be found on our website, so I will not repeat all the details here. We were pleased to extend the maturity of all the debt supporting our MVP investment to 2032 with reasonable amortization. During the intervening years, we expect cash flows will be enhanced by the Southgate and Boost projects at MVP, and we have addressed our share of funding these projects as well. With these projects generating cash flow, our investment will be more valuable.

Moving to slide eight, we ended the year with a strong balance sheet. During the fourth quarter, we refinanced the debt that supports our investment in MVP for the long term. We have disclosed the details in our investor communications in September and in note seven of our Form 10-K that was filed yesterday. All of these documents can be found on our website, so I will not repeat all the details here. We were pleased to extend the maturity of all the debt supporting our MVP investment to 2032 with reasonable amortization. During the intervening years, we expect cash flows will be enhanced by the Southgate and Boost projects at MVP, and we have addressed our share of funding these projects as well. With these projects generating cash flow, our investment will be more valuable.

Tommy Oliver: Now, let me turn the presentation over to Paul Nester, our President and CEO, to take us through our 2026 outlook. Paul? Thank you, Tim, and good morning to everyone. I would like to take a moment before we dive into the outlook just to issue our thanks to our customers and our employees for a fantastic fiscal 2025, as Tim and Tommy have just reviewed, and certainly to all of our employees for their everyday dedication to serving the customer and doing that safely and reliably. It's translated in these incredible what are really record earnings and earnings per share results. So thank you. As you can see on slide nine, we have a short agenda here for the 2026 outlook, and let's move on to slide 10. We continue to have momentum with new housing here in the greater Roanoke Valley.

Now, let me turn the presentation over to Paul Nester, our President and CEO, to take us through our 2026 outlook. Paul?

With these projects, generating cash flow will make investments more valuable.

Paul Nester: Thank you, Tim, and good morning to everyone. I would like to take a moment before we dive into the outlook just to issue our thanks to our customers and our employees for a fantastic fiscal 2025, as Tim and Tommy have just reviewed, and certainly to all of our employees for their everyday dedication to serving the customer and doing that safely and reliably. It's translated in these incredible what are really record earnings and earnings per share results. So thank you. As you can see on slide nine, we have a short agenda here for the 2026 outlook, and let's move on to slide 10. We continue to have momentum with new housing here in the greater Roanoke Valley.

Now, let me turn the presentation over to Paul Nestor our president and CEO to take us through our 2026 Outlook, Paul. Thank you, Tim and good morning to everyone, and I would like to take a moment before we dive into the Outlook, just to um issue our thanks to our our customers, and our employees, for a fantastic physical 2025. As Tim and Tommy have just reviewed and certainly to all of our employees, for their, uh, every day dedication to, to serving the customer and doing that safely and reliably, it's translated in these incredible. What what are really record earnings and earnings per share results? So

Thank you. Um, as you can see on slide 9, we have a...

A short agenda here for the 2026 Outlook and let's move on to slide 10.

Tommy Oliver: Tommy mentioned our customer additions over the last three years. If you average those out, it's over 660 customers per year, which is just almost exactly 1% customer growth. And if you look back over the history of the company for really the last 20 years, we've been in that upper 1%, lower 1% range, and that continues to be steady. We're very optimistic about 2026 in that regard. We continue to have expansion in our healthcare and medical sector and complex here in the Roanoke Valley. It's really one of the shining stars, both scientifically and economically, but we are seeing more real estate there, more footprint, which is hopefully going to result or translate into additional natural gas usage. Tim mentioned MVP and the Southgate and Boost projects.

Tommy mentioned our customer additions over the last three years. If you average those out, it's over 660 customers per year, which is just almost exactly 1% customer growth. And if you look back over the history of the company for really the last 20 years, we've been in that upper 1%, lower 1% range, and that continues to be steady. We're very optimistic about 2026 in that regard. We continue to have expansion in our healthcare and medical sector and complex here in the Roanoke Valley. It's really one of the shining stars, both scientifically and economically, but we are seeing more real estate there, more footprint, which is hopefully going to result or translate into additional natural gas usage. Tim mentioned MVP and the Southgate and Boost projects.

Good morning, and thank you for joining us as we discuss rgc, resources 2025, fourth quarter and year end results.

We continue to have momentum um with new housing here in the greater Reno Valley. Tommy mentioned, our customer editions over the last 3 years if you average those out it's over 660 customers per year, which is just almost exactly 1% customer growth. And if you look back over the history of the company for really the last 20 years, we've been in that uh,

Upper 1% lower 1% range and uh that continues to be steady. We're very optimistic about

I am Tommy Oliver senior VP Regulatory and external Affairs for rgc resources. Inc. I'm joined this morning by Paul. Nestor president CEO of rgc resources. Tell me the timeline RVP treasure and Chief Financial Officer.

But before we get started, I want to review a few administrative items.

1, we have muted all lines, and asked that all participants remain muted.

Tommy Oliver: We are thrilled to continue as a partner in those, and we're very optimistic about the success of those projects and what it'll mean to this region. As you can see on the slide, we have the Google logo there, and we've talked about Google in the past and the announcement that was made in our fiscal Q3 about their location in the Roanoke Valley. That's progressing on schedule. Again, I think there'll be more to come about that in our fiscal 2026. We're still working on Franklin County, as Tommy mentioned, and the new business park there, working very closely with the county to hopefully spur some economic development in the park. We're also still working on expanding gas service in other parts of the county.

We are thrilled to continue as a partner in those, and we're very optimistic about the success of those projects and what it'll mean to this region. As you can see on the slide, we have the Google logo there, and we've talked about Google in the past and the announcement that was made in our fiscal Q3 about their location in the Roanoke Valley. That's progressing on schedule. Again, I think there'll be more to come about that in our fiscal 2026. We're still working on Franklin County, as Tommy mentioned, and the new business park there, working very closely with the county to hopefully spur some economic development in the park. We're also still working on expanding gas service in other parts of the county.

2, the link to today's presentation is available on the investor and financial information page for our website at

And lastly at the conclusion of the presentation and our remarks, we will take questions.

Which is hopefully going to uh result or translate into additional natural gas usage. Tim mentioned um MVP in the south gate and boost projects. We are thrilled to uh continue as a partner in those. And we're very optimistic about um the success of those projects and what it'll mean to uh this region.

So let's turn to slide 1. This presentation contains estimates and projections. Slide 1, has information about risks and uncertainties, including forward-looking statements. That should be understood in the context of our public violence.

As you can see on the slide, we have the Google, uh, the Google, um, logo there. And we've talked about Google in the past and the announcement that was made.

Slide 2 contains our agenda. We will discuss our operational and financial highlights for the fourth quarter in our 2025. Fiscal year. We will then provide an outlook for the 2026 fiscal year with time, allotted for questions at the end.

In our physical third quarter about their location in the Reno Valley, that's progressing on schedule. Again, I think there'll be more to come about that in our physical 2026. We're still working on, uh, Franklin County.

As Tommy mentioned, and some of you business park there, working very closely with the county to.

So let's get started on slide 3. We had a very strong year for Mane extensions in addition renewal activity with steady during the fiscal 2025 year.

hopefully, uh, spur some economic development in the park and we're also still working on

Residential growth in The Rona, Valley has not abated.

Um, expanding gas service.

Tommy Oliver: We recently had some discussion with our westernmost territory, Montgomery County, which you may recall is actually where most of the MVP in this region is located and, in fact, where the Boost project will do some construction, hopefully in the near future, about some expansion opportunities there. Moving on to slide 11, I'd like to hand it back over to Tommy so he can give us a few more details on the recently filed rate case. Tommy? Yeah, thank you, Paul. As Paul noted, we filed an expedited rate case on 2 December, in which we're seeking an approximate $4.3 million increase in annual revenues, and that's based on our currently authorized ROE of 9.9%. Based on the timing of the notice and filings, we believe these new rates will become effective 1 January 2026. Those are subject to refund once the commission fully adjudicates the case.

We recently had some discussion with our westernmost territory, Montgomery County, which you may recall is actually where most of the MVP in this region is located and, in fact, where the Boost project will do some construction, hopefully in the near future, about some expansion opportunities there. Moving on to slide 11, I'd like to hand it back over to Tommy so he can give us a few more details on the recently filed rate case. Tommy?

uh, in other parts of the county, we recently had some discussion

We installed nearly 5 main miles, which is 50% higher than the total main models installed in fiscal. 2024 we also connected more than 700 new services. This compares to a customer additions and fiscal 2024 of approximately 630 and fiscal year 2023 ads of approximately 550.

With, uh, our westernmost territory, Montgomery County which you may recall is actually where, uh, most of the MVP in this region is uh, located. And in fact where the Boost uh project will do some construction. Uh, hopefully in the near future about some expansion opportunities there.

Those that dive into our year-over-year customer accounts will notice that our average customer account increases slower than the actual adsit of the bond.

Moving on to slide 11, I'd like to hand it back over to Tommy.

Tommy Oliver: Yeah, thank you, Paul. As Paul noted, we filed an expedited rate case on 2 December, in which we're seeking an approximate $4.3 million increase in annual revenues, and that's based on our currently authorized ROE of 9.9%. Based on the timing of the notice and filings, we believe these new rates will become effective 1 January 2026. Those are subject to refund once the commission fully adjudicates the case.

This is due to the nature of our business. We routinely we routinely have customers that use natural gas exclusively to heat their homes, disconnect their service or will not pay their bills and will be disconnected through the collections process once Spring weather arrives. This past this past spring, we had over 1,500 customers disconnect many of which are now returning to the system with the onset of cold weather.

In fact, we have reconnected over 500 customers since October.

Tommy Oliver: We expect that process to take about 12 to 18 months. Offsetting that increase, we recently reached agreement with regards to certain tax credits and expect to begin returning these credits to customers over the next 12 months, and are included with our regulatory liabilities on our balance sheet. So we'll turn it back over to Paul. Yeah, thank you, Tommy. It's no small feat to actually get this case filed right on the heels of the prior case being resolved. And Tim, Kelsey, and their teams have done a very nice job on this tax credit initiative, which is, we believe, greatly going to help and benefit our customers. So we're pleased to be able to incorporate that with the rate application.

We expect that process to take about 12 to 18 months. Offsetting that increase, we recently reached agreement with regards to certain tax credits and expect to begin returning these credits to customers over the next 12 months, and are included with our regulatory liabilities on our balance sheet. So we'll turn it back over to Paul.

Um, so he can give us a few more details on the recently filed rate case, Tommy. Yeah, thank you. Paul, has Paul noted, we filed an expedited rate case on December 2nd in which we're seeking an approximate 4.3 million increase in annual revenues. And that's based on our currently authorized Roe of 9.9% based on the timing of the notice and filing. We believe these new rates will become effective, January 1st 2026. Those are subject to refund once the commission will fully adjudicate the case.

by the end of the second quarter, we expect our customer accounts to be approximately 65,000 customers

We expect that that process to take about 12 to 18 months.

Our system safety and reliability is always a high priority through our safe program. We renewed 4.2 miles of Main and nearly 350 Services during the fiscal 2025 period.

Paul Nester: Yeah, thank you, Tommy. It's no small feat to actually get this case filed right on the heels of the prior case being resolved. And Tim, Kelsey, and their teams have done a very nice job on this tax credit initiative, which is, we believe, greatly going to help and benefit our customers. So we're pleased to be able to incorporate that with the rate application.

Transitioning to slide 4.

We delivered record volumes of gas and fiscal 2025. However, I will come back to that in a moment as slide 4 shows, delivered gas volumes for the quarter.

total volumes increase 8% compared to the fourth quarter of 2024

1 Industrial customer with fuel switching capability. Continued, their higher natural gas consumption this year as we have discussed in previous quarters,

Tommy Oliver: Moving on to slide 12, this slide looks eerily similar year after year, but again, that's part of the predictability of our customer growth and our SAVE program. Our ability to invest $20, $21, $22, or $23 million a year now is, in fact, proven. Again, for 2026, we're showing a capital budget of $22 million led by the continued renewal of the 373 Adyl A plastic and a couple of other items through our SAVE program. Again, we have reasonable customer growth expectations and a normal amount of system enhancement. One thing I'd like to add back to the two slides ago about the expansion opportunities and growth opportunities; as those arise, we have the ability to either add capital or shift capital. Again, that's something we've historically done and I think done quite nimbly. Again, we're prepared to do that again in 2026.

Moving on to slide 12, this slide looks eerily similar year after year, but again, that's part of the predictability of our customer growth and our SAVE program. Our ability to invest $20, $21, $22, or $23 million a year now is, in fact, proven. Again, for 2026, we're showing a capital budget of $22 million led by the continued renewal of the 373 Adyl A plastic and a couple of other items through our SAVE program. Again, we have reasonable customer growth expectations and a normal amount of system enhancement. One thing I'd like to add back to the two slides ago about the expansion opportunities and growth opportunities; as those arise, we have the ability to either add capital or shift capital. Again, that's something we've historically done and I think done quite nimbly. Again, we're prepared to do that again in 2026.

Of setting that increase. We recently reached agreement with regards to certain tax credits and expect to begin returning, these credits to customers over the next 12 months, and are included with our regular toy liabilities on our balance sheet. So we'll turn it back over to Paul. Yeah, thank you, Tommy. It's um no small fee to actually uh get this case filed right on the heels of the prior case being resolved and um Tim and Kelsey and their teams have done, a very nice job on this tax credit initiative which is We Believe greatly going to help and benefit our customers. So we're we're pleased to be able to incorporate that with the rate application.

Moving on to slide 12. Um,

Residential and Commercial volumes were slightly up when compared to the same quarter in the prior year.

Slide 5.

The combination of that. Same industrial customer along with a few other customers combined with Colder. Weather also has discussed some previous calls enabled us to achieve a new gas. Delivery record with heating degrees days of 18%. Total volumes moved up 14% from for compared to last year.

This Record level of gas delivery outstripped, our prior annual record throughput to set in 2021.

This slide looks eerily similar year after year, but again, that's part of the predictability of our customer growth and our Save program. Our ability to invest $21 million to $23 million a year now is, in fact, proven. And again, for 2026, we're showing a capital budget of $22 million, led by the continued renewal of the 373 Adelaide plastic and a couple of other items through our Save program. Again, we have reasonable customer growth expectations and a normal amount of system enhancement.

1 thing, I'd like to add, you know, back to the uh

Slide 6 shows full year capex. Total spending was 20.7 million in the current year down 6% compared to the 2024 fiscal year. However, recall that in 2024, we spent approximately 3.2 million dollars to complete the MVP interconnections which enables us to grow our system in Franklin County.

Tommy Oliver: In fact, like to do that as growth opportunities present themselves. Let's take a minute and just talk about some of these drivers for 2026, but it does require us to go back and look at 2025 a little bit. Tim and Tommy have already talked about those first two bullets, the housing authority transfers. Just as a recap, those were projects with our local housing authority that started four years ago where we converted five complexes with modern pipe, modern meters, modern equipment. Our company now owns and operates those facilities, and we're just excited about that because of the safety and reliability that those projects have provided. We'll see on the next earnings per share slide, and Tim talked about it, there was an income statement impact to those projects that, since we have completed the projects, again, will not recur.

In fact, like to do that as growth opportunities present themselves. Let's take a minute and just talk about some of these drivers for 2026, but it does require us to go back and look at 2025 a little bit. Tim and Tommy have already talked about those first two bullets, the housing authority transfers. Just as a recap, those were projects with our local housing authority that started four years ago where we converted five complexes with modern pipe, modern meters, modern equipment. Our company now owns and operates those facilities, and we're just excited about that because of the safety and reliability that those projects have provided. We'll see on the next earnings per share slide, and Tim talked about it, there was an income statement impact to those projects that, since we have completed the projects, again, will not recur.

2 slides ago, about the expansion opportunities and growth opportunities. As those arise, we have the ability to either add capital or shift Capital. Again, that's something we've historically done, and I think done quite nicely. And again, we're prepared to do that again in 2026. And then when, in fact,

Like to do that as growth opportunities.

Present themselves.

Continue to invest in extending renewing. Our system is noted above

we will, we will provide our outlook for capex as we discussed, fiscal 2026 later, Industries presentation,

Let's take a minute and just talk about some of these uh drivers for 2026, but it does require us to go back and look at 2025 um, a little bit Tim and Tommy have already talked about those first 2 bullets. The the Housing Authority transfers and, you know, just as a recap those were uh, projects with our local Housing Authority, that started 4 years ago.

I will now turn the presentation over to our CFO Tim Mulvaney to review our financial results and to comment on the confirmation of the financing that we told you about at the end of quarter 3, Tim

Where we?

Thank you, Tommy.

Turning to slide 7. Now, we experienced a slight loss in the current quarter.

Um, converted 5 complex with modern pipe modern meters modern equipment.

The fourth quarter is traditionally seasonally weaker for us.

And we had a higher expenses than the same period a year earlier as inflation, while lower is still present.

And our company now owns and operates those facilities. We're just excited about that because of the safety and reliability that those projects have provided. We'll see on the next earnings per share slide, and Tim talked about it there. There was an income statement impact to those projects that, since we have completed the projects, again will not.

Tommy Oliver: And obviously, that creates a little bit of a hole for 2026 when you compare the year-over-year earnings. The other item there, again, thanks to our customers, and as Tommy highlighted, the record gas deliveries last year were just that. And we saw that in a couple of areas, not just the large fuel switching customer, but also in some of our largest firm commercial customers. We just thought it prudent to not plan for those kinds of record volumes again this year. They could happen. We hope they're happening. We'll do everything in our power to help make them happen. But from an expense management standpoint, we thought it more prudent to lower the top line as a planning tool for 2026. Tommy just talked about the new rate case. That's obviously very important to how 2026 turns out.

And obviously, that creates a little bit of a hole for 2026 when you compare the year-over-year earnings. The other item there, again, thanks to our customers, and as Tommy highlighted, the record gas deliveries last year were just that. And we saw that in a couple of areas, not just the large fuel switching customer, but also in some of our largest firm commercial customers. We just thought it prudent to not plan for those kinds of record volumes again this year. They could happen. We hope they're happening. We'll do everything in our power to help make them happen. But from an expense management standpoint, we thought it more prudent to lower the top line as a planning tool for 2026. Tommy just talked about the new rate case. That's obviously very important to how 2026 turns out.

This resulted in a net loss of 204,000 or 2 cents per share compared to net income in the same quarter a year ago of 141,000 or 1 cent per share.

We will touch on our plans to deal with higher expenses in the Outlook section.

And obviously, that creates a little bit of a hole for, uh, 2026. When you compare the year-over-year earnings, the other item there, again, thanks to our customers.

1 item present in both periods were gains of approximately 6 cents per share. Each year related to donations from the local Housing Authority. As we converted Master Meter Arrangements, into system assets to improve reliability and safety for customers.

And as Tommy highlighted the the record uh gas deliveries last year were just that and we saw that in a couple of areas, not just the large fuel switching customer, but also some of our largest firm commercial customers.

This will not recur in 2026.

Year to date results are shown also shown on slide 7. Our performance for the year was outstanding

That income for fiscal 2025 was 13.3 million or a129 per. Share an increase of 15% from fiscal 2024 11.8 million or a16 per share

Tommy Oliver: The SAVE rider continues to provide helpful revenue and, in fact, does cover some of the depreciation and property tax growth that, again, we experience very predictably related to our capital spending. Finally, there in 2026, it was just announced a few days ago; our board did authorize a larger increase this year than last year, $0.04 per share on an annualized basis, almost 5% to $0.87 per share. Again, a result of the strong earnings in 2025 and what we think is going to be a solid 2026. On slide 14, you'll see our earnings per share guidance for 2026 and the range. Again, we think there are some headwinds. Tim and Tommy have talked about inflationary pressures. Those are still very real. Obviously, the rate-making will hopefully offset some of that.

The SAVE rider continues to provide helpful revenue and, in fact, does cover some of the depreciation and property tax growth that, again, we experience very predictably related to our capital spending. Finally, there in 2026, it was just announced a few days ago; our board did authorize a larger increase this year than last year, $0.04 per share on an annualized basis, almost 5% to $0.87 per share. Again, a result of the strong earnings in 2025 and what we think is going to be a solid 2026. On slide 14, you'll see our earnings per share guidance for 2026 and the range. Again, we think there are some headwinds. Tim and Tommy have talked about inflationary pressures. Those are still very real. Obviously, the rate-making will hopefully offset some of that.

We just thought it prudent to not plan for those kinds of record volumes again. This year, they could happen. We hope they happen. We'll do everything in our power to help make them happen. But from an expense management standpoint, we thought it more prudent to lower the top line as a planning tool for 2026. Tommy just talked about the new rate case; that's obviously very important to how 2026 turns out.

the strong increase, reflected the record levels of gas delivery, that Tommy discussed

And was aided by higher operating margins. Partially offset by inflationary cost increases and lower Equity, earnings from the company's investment in the Mountain Valley pipeline.

MVPs Equity earnings for the first 3. Quarters of fiscal 2024 contained significant amounts of afdc

moving to slide 8.

We ended the year with a strong balance sheet, during the fourth quarter, we refinanced the debt that supports our investment in MVP for the long term.

The Save Rider continues to provide helpful revenue and, in fact, does cover some of the depreciation and property tax growth that, again, we experience very predictably related to our capital spending. Finally, there in 2026, it was just announced a few days ago, our board did authorize a larger increase this year than last year: 4 cents per share on an annualized basis, almost 5%, to 87 cents per share. Again, this is a result of the strong earnings in 2025 and what we think is going to be a solid 2026.

We have disclosed the details in our investor Communications in September. And in Note 7 of our form 10K that was filed yesterday.

All of these documents can be found on our website.

So, I will not repeat all the details here.

We were pleased to extend the maturity of all the debts supporting our MVP investment to 2032 with reasonable amortization.

Tommy Oliver: So we do have a little bit of a wider range than normal here, but based on some of the uncertainty in 2026, again, with volume deliveries, weather, and the rate-making, we feel like the range is appropriate. You can see also the slide does highlight the impact of those housing authority projects in 2024 and 2025. I would like to add we're already two months into fiscal 2026, and it is a more challenging year already than 2025, again, for the items we've talked about there. But we're doing our best, again, to work through that and manage through that. We finally have had some cold weather set into the Roanoke region here in the last week and a half, and it looks like we're going to have another week and a half of cold weather. That should be helpful.

So we do have a little bit of a wider range than normal here, but based on some of the uncertainty in 2026, again, with volume deliveries, weather, and the rate-making, we feel like the range is appropriate. You can see also the slide does highlight the impact of those housing authority projects in 2024 and 2025. I would like to add we're already two months into fiscal 2026, and it is a more challenging year already than 2025, again, for the items we've talked about there. But we're doing our best, again, to work through that and manage through that. We finally have had some cold weather set into the Roanoke region here in the last week and a half, and it looks like we're going to have another week and a half of cold weather. That should be helpful.

On slide 14, you'll see our earnings per share guidance for 2026 and the range. Again, we think there are some headwinds that Tim and Tommy have talked about, including inflationary pressures. Those are still very real; obviously, the rate-making will hopefully offset some of that.

so we do have a little bit of a wider range than normal here, but based on some of the uncertainty in 2026 again with volume, deliveries weather,

During the intervening years, we expect cash flows will be enhanced by the Southgate and boost projects at MVP and we have addressed our share of funding these projects as well.

And the rate making we feel like the range is appropriate.

With these projects, generating cash flow are investment will be more valuable.

You can see also, the slide does highlight the impact of those housing authority projects.

In 2024 and 2020.

I would like to add, um,

You know, we're already 2 months into physical 2026 and, uh, it is a, it is a more challenging year. Uh, already than 2025 again for the items, we've talked about their

Tommy Oliver: But again, I'd like to take one more opportunity to thank our customers, and especially our employees, for working safely. Safety is our number one priority. Working diligently to serve the customer. We're excited about economic development in the region. We continue to participate in a meaningful way on that. And with that, I think we'll conclude our prepared remarks and open the line for questions. Pound Pound One to unmute your line if you'd like to ask a question. Pound Pound One. Good morning, everyone. Well, good morning, Mike. How are you? Doing well, sir. Yourself? We're doing great. Thank you. I'd like to go back to your comments here on weather. I take it it's tracking favorably versus last year? Yeah. We started off. We had some strange weather patterns in October and November, part of the challenge there.

But again, I'd like to take one more opportunity to thank our customers, and especially our employees, for working safely. Safety is our number one priority. Working diligently to serve the customer. We're excited about economic development in the region. We continue to participate in a meaningful way on that. And with that, I think we'll conclude our prepared remarks and open the line for questions. Pound Pound One to unmute your line if you'd like to ask a question. Pound Pound One. Good morning, everyone. Well, good morning, Mike. How are you?

Now, let me turn the presentation over to Paul Nestor our president and CEO to take us through our 2026 Outlook, Paul. Thank you, Tim and good morning to everyone, and I would like to take a moment before we dive into the Outlook, just to um issue our thanks to our our customers, and our employees, for a fantastic physical 2025. As Tim and Tommy have just reviewed and certainly to all of our employees, for their, uh, every day dedication to to serving the customer and doing that safely and reliably, it's translated in these incredible. What what are really record earnings and earnings per share results. So so thank you. Um, as you can see on slide 9, we have a a

But we're doing our best again to work through that and manage through that. We finally have had some cold weather set into the REO region here in the last week and a half, and it looks like we're going to have another week and a half of cold weather that should be helpful. But again, I'd like to take one more opportunity to thank our...

A short agenda here for the 2026 Outlook and let's move on to slide 10.

Our customers and especially our employees for working safely. Safety is our number 1 priority working diligently to serve the customer

We're excited about economic development in the region. We continue to participate in a meaningful way on that. And, um, with that, I think we'll, uh,

Uh, I will conclude our prepared remarks and open the line for questions.

Pound pound 1, to unmute your line.

If you'd like to ask a question, pound pound 1.

We continue to have momentum um with new housing here in the greater Renault Valley. Tommy mentioned, our customer editions over the last 3 years. If you average those out it's over 660 customers per year, which is just almost exactly 1% customer growth. And if you look back over the history of the company for really the last 20 years, we've been in that uh, upper 1% lower 1% range, and uh, that continues to be steady. We're very optimistic about

Good morning, everyone.

[Analyst]: Doing well, sir. Yourself?

Well, good morning. Mike. How are you?

Paul Nester: We're doing great. Thank you.

Doing well, sir.

[Analyst]: I'd like to go back to your comments here on weather. I take it it's tracking favorably versus last year?

We're doing great. Thank you.

To your comments here on.

Whether?

Paul Nester: Yeah. We started off. We had some strange weather patterns in October and November, part of the challenge there.

I take it. It's uh, tracking favorably versus last year.

Tommy Oliver: October had a lot of heating degree days, but we really didn't see the volume because of the dispersion of those heating degree days. So October was off from October of last year. November, we're still, of course, closing the books for November. We'll know a little more in a few days. But November turned very warm, and then it turned very cold around Thanksgiving, the last few days of the month. And that cold air mass has hung in here. In fact, we're calling for wintry mix and snow tomorrow here in Roanoke. So if you look at the Henry Hub future prices and the NYMEX future prices of natural gas, it feels like nationally there's going to be more cold weather this year. I think yesterday it closed at $5, approximately, a decatherm on the current month. And that's a high number, as you know, Mike.

October had a lot of heating degree days, but we really didn't see the volume because of the dispersion of those heating degree days. So October was off from October of last year. November, we're still, of course, closing the books for November. We'll know a little more in a few days. But November turned very warm, and then it turned very cold around Thanksgiving, the last few days of the month. And that cold air mass has hung in here. In fact, we're calling for wintry mix and snow tomorrow here in Roanoke. So if you look at the Henry Hub future prices and the NYMEX future prices of natural gas, it feels like nationally there's going to be more cold weather this year. I think yesterday it closed at $5, approximately, a decatherm on the current month. And that's a high number, as you know, Mike.

Boost projects. We are thrilled to uh, continue as a partner in those. And we're very optimistic about um, the success of those projects and what it'll mean to uh, this region.

Yeah, the way we started off, we had some strange weather patterns in October and November. Part of the challenge there, um, October had a lot of heating degree days, but we really didn't see the volume because of the dispersion of those heating degree days.

As you can see on the slide, we have the the Google uh the Google um logo there and we've talked about Google in the past and the announcement that was made.

In our physical third quarter about their uh, location in the Reno Valley, that's progressing on schedule. Again I think the more to come about that in our physical 2026. We're still working on uh, Franklin County.

as Tommy mentioned, and some of you business park there, working very closely with the county to

Um, so October, uh, was was off from October of of last year. November. Uh, we're still, of course, closing the books for November. We'll, we'll know a little more in a few days but, um, November turned very warm and then it turned very cold around Thanksgiving the last few days under the month and that, that cold that cold air mass is hung in here. In fact, we're calling for wintry mix and snow tomorrow here in Ron Oaks. So, um,

hopefully, uh, spur some economic development in the park and we're also still working on

Um, expanding gas service.

If you look at the uh, Henry Hub future prices and the NX future prices of natural gas. It feels like nationally

uh, in other parts of the county, we recently had some discussion

Tommy Oliver: We haven't seen that number in quite some time. We did not see it last year, as I recall, certainly not this early in the year. That's great. And then EVP, they've got a lot of projects going. Any capital requirements from you in 2026? Yeah, I may hand that one over to Tim. Sure. Mike, we have, as part of the refinancing that we did, we set up two facilities to fund the investment in Boost and in Southgate. So we expect that that will come straight through what we borrow. It includes, over the course of the next several years, our investment in those projects will probably total $4 to $5 million, with maybe the first $1 million to $1.5 million this year. Okay. And then I guess my question, Paul, you kind of sidestepped it a little bit on the data centers.

We haven't seen that number in quite some time. We did not see it last year, as I recall, certainly not this early in the year.

Closed at 5 dollars, approximately a deck of them on the current month. And that's a, that's a high number, as, you know, Mike. We haven't seen that number in quite some time did not see it last year, as I recall,

[Analyst]: That's great. And then EVP, they've got a lot of projects going. Any capital requirements from you in 2026?

Certainly not this early in the year.

Let's see.

And then EVP, they've got a lot of projects going.

Paul Nester: Yeah, I may hand that one over to Tim.

Moving on to slide 11, uh, I'd like to hand it back over to Tommy.

Uh, any Capital requirements from you in 2026?

Timothy Mulvaney: Sure. Mike, we have, as part of the refinancing that we did, we set up two facilities to fund the investment in Boost and in Southgate. So we expect that that will come straight through what we borrow. It includes, over the course of the next several years, our investment in those projects will probably total $4 to $5 million, with maybe the first $1 million to $1.5 million this year.

Yeah, I may hand that 1 over to town.

Sure, uh, Mike. As part of the refinancing that we did, we set up.

Uh, 2 facilities.

Um, so he can give us a few more details on the recently filed rate case, Tommy? Yeah, thank you. Paul. As Paul know that we filed an expedited rate case on December 2nd in which we're seeking an approximate 4.3 million increase in annual revenues. And that's based on our currently authorized Roe of 9.9% based on the timing of the notice and filing. We believe these new rates will become effective, January 1st 2026. Those are subject to refund once the commission will fully adjudicate the case.

We expect that that process to take about 12 to 18 months.

Uh, to, uh, fund the investment in boost and in Southgate. So uh, we expect that that will uh, come straight through. Uh, what we borrow. It includes uh over the course of the next several years. Uh, our investment in those projects will probably total uh, 4 to 5 million dollars with maybe the first uh,

[Analyst]: Okay. And then I guess my question, Paul, you kind of sidestepped it a little bit on the data centers.

Million to million and a half this year.

Okay.

And then I guess my question, uh, Paul, you...

Of setting that increase. We recently reached agreements with regards to the certain tax credits that expect to begin returning, these credits to customers over the next 12 months and are included with our regular toy liabilities on our balance sheet. So,

Tommy Oliver: Just wondering if there's been anything you can share there as to what it's looking like. Yeah, happy to maybe give a little context from the state lens, and then we can zero into the region here. There's been a lot of announcement in the last three to six months across the state of Virginia, a fair amount of it, in fact, in the Richmond and Fredericksburg areas. Google announced back in August approximately $9 billion of investment for three data centers sort of south and just to the southwest of Richmond. It was a very large announcement about a week and a half ago with the governor in Caroline County, which is just north of Richmond, sort of between Richmond and Fredericksburg. So the state, through, I would say, the governor's office and our Virginia Economic Development Partnership, continues to be active in this area.

Just wondering if there's been anything you can share there as to what it's looking like.

You kind of sidestepped it a little bit on the, uh, the data centers. Just wondering if there's been anything you can share there as to, uh,

Paul Nester: Yeah, happy to maybe give a little context from the state lens, and then we can zero into the region here. There's been a lot of announcement in the last three to six months across the state of Virginia, a fair amount of it, in fact, in the Richmond and Fredericksburg areas. Google announced back in August approximately $9 billion of investment for three data centers sort of south and just to the southwest of Richmond. It was a very large announcement about a week and a half ago with the governor in Caroline County, which is just north of Richmond, sort of between Richmond and Fredericksburg. So the state, through, I would say, the governor's office and our Virginia Economic Development Partnership, continues to be active in this area.

What it's looking like.

Happy to maybe give a little context from the, the state lens and then we can zero into the region here. Um, there's been

We'll turn it back over to Paul. Yeah, thank you, Tommy. It's um no small fee to actually uh get this case filed right on the heels of the prior case being resolved and um Tim and Kelsey and their teams have done, a very nice job on this tax credit initiative which is We Believe greatly going to help and benefit our customers. So we're we're pleased to be able to incorporate that with the rate application.

Moving on to slide 12. Um,

a a lot of announcements uh in the last 3 to 6 months um across the state of Virginia, a fair amount of it, in fact in the Richmond and Fredericksburg areas, um, Google announced

Back in August approximately 9 billion dollars of investment. For 3 data centers, sort of South and just to the southwest of Richmond.

Tommy Oliver: If you drill that back to Southwest Virginia, there continues to be interest and discussion among prospects, Mike. I think that's a common answer around the country. As a matter of fact, that's not per se special to us. Certainly, the Google announcement in late May of them acquiring property, and that's really all they publicly announced. That certainly, I think, sort of lifted this region a little bit higher in the windshield, if you will, of some of the folks that do this kind of development. Obviously, if Google's willing to consider making an investment here and, in fact, buying property to do so, it's noticeable. What we're hearing, Mike, is I think there'll be more precise announcement around Google's intentions in the region in 2026.

If you drill that back to Southwest Virginia, there continues to be interest and discussion among prospects, Mike. I think that's a common answer around the country. As a matter of fact, that's not per se special to us. Certainly, the Google announcement in late May of them acquiring property, and that's really all they publicly announced. That certainly, I think, sort of lifted this region a little bit higher in the windshield, if you will, of some of the folks that do this kind of development. Obviously, if Google's willing to consider making an investment here and, in fact, buying property to do so, it's noticeable. What we're hearing, Mike, is I think there'll be more precise announcement around Google's intentions in the region in 2026.

It was a very large announcement, um, about a week and a half ago with the governor and Caroline County, which is just north of Richmond, sort of between uh, Richmond and Fredericksburg. So the uh, the state, through, I would say, the governor's office and our Virginia Economic Development Partnership, continues to be active in this area.

this slide looks eerily similar year after year, but again, that's part of the predictability of our customer growth and our save program. Our ability to invest 202122 or 23 million a year. Now is, um, in fact, proven and again, for 2026, we're showing a capital budget of 22 million led by, uh, the continued renewal of the 373 Adelaide plastic and a couple of other items through our safe program. Again, we have reasonable customer growth, expectations and a, and a normal amount of system enhancement.

1 thing, I'd like to add, you know, back to the uh

2 slides ago, about the expansion opportunities and growth opportunities. As those arise, we have the ability to either add capital or shift Capital. Again, that's something we've historically done, and I think done quite Nim. And again, we're prepared to do that again in 2026. And then when, in fact,

Like to do that as growth opportunities.

Present themselves.

If you drill that back to, um, Southwest Virginia, there continues to be interest and discussion among, um, prospects Mike. And I think that's a, a common answer around the country. As a matter of fact, that's not per se special to us. Certainly the, the Google announcement in uh, late May of them acquiring property and that's really all they, they publicly announced. But that certainly, I think, um,

Sort of lifted this region a little bit higher in the, in the, um, in the, the windshield, if you will, of some, of the folks that do this kind of development. Obviously, if Google's willing to

Consider making an investment here and in fact, buying property to do to do so.

Where we?

Um, converted 5 complexes with modern pipe modern meters modern equipment.

Tommy Oliver: I don't know that there's been a per se date or timeframe for that to happen, but that's what we're hearing. All right. Well, on a nice quarter, gentlemen. Have a great rest of your day. Well, thank you so much for joining us, Mike. Always good to have you. Do we have any other questions? You can use Pound Pound One to unmute your line. We'll wait just a moment more. All right. It doesn't seem like there are any further questions at this time. This will conclude our fourth quarter and fiscal 2025 earnings call. Certainly, on behalf of all of us here at RGC Resources, we appreciate you taking time to join us this morning. We wish you and your families a Merry Christmas and a safe and prosperous 2026. We look forward to speaking with you in February to review 2026 first quarter results.

I don't know that there's been a per se date or timeframe for that to happen, but that's what we're hearing.

[Analyst]: All right. Well, on a nice quarter, gentlemen. Have a great rest of your day.

It's um it's noticeable. So um what we're hearing Mike is I think you know they'll be more uh precise announcement around Google's intentions in the region in 2026. I don't know that there's been a a per se date or or time frame for that to happen. But um that that's what we're hearing.

All right, okay.

Want a nice quarter gentleman.

Paul Nester: Well, thank you so much for joining us, Mike. Always good to have you. Do we have any other questions? You can use Pound Pound One to unmute your line. We'll wait just a moment more. All right. It doesn't seem like there are any further questions at this time. This will conclude our fourth quarter and fiscal 2025 earnings call. Certainly, on behalf of all of us here at RGC Resources, we appreciate you taking time to join us this morning. We wish you and your families a Merry Christmas and a safe and prosperous 2026. We look forward to speaking with you in February to review 2026 first quarter results.

Have a great rest of your day.

And our company now owns and operates those facilities. And we're just excited about that because of the safety and reliability that those, uh, projects have provided and we'll see on the next earnings per share. Slide, and Tim talked about it there. There was an income statement impact to those projects that. Um, since we have completed the projects again will not

Well, thank you so much for joining us. Mike, it's always good to have you.

Do we have any other questions you can?

Use pound pound 1, to unmute your line.

We'll wait just a moment more.

Is Tommy highlighted the the record uh gas deliveries last year were just that and we saw that in a couple of areas, not just the large fuel switching customer, but also some of our largest firm commercial customers.

all right, it doesn't

Uh, seem like there are any further questions at this time.

So this will conclude our fourth quarter and fiscal 2025 earnings call.

On behalf of all of us here.

At RGC Resources, we appreciate you taking the time to join us this morning. We wish you and...

We just thought it prudent uh, to not uh, plan for those kinds of record volumes again. This year, they could happen. We hope they're happen. We'll do everything in our power to help make them happen. But from an expense management standpoint, we thought it more prudent to, uh, lower the top line as a planning tool for 2026 Tommy. Just talked about the new rate case, that's obviously very important to how 2026 turns out.

a Merry Christmas and a

Safe and prosperous 2026. And we look forward to speaking with you in February.

Tommy Oliver: Thank you.

Thank you.

Tommy Oliver: Thank you.

To review. 2026 first quarter results. Thank you.

The save Rider continues to provide helpful uh revenue and in fact does cover some of the depreciation and property tax growth that again, we experience very predictably related to our Capital spending and finally there in 2026. It was just announced a few days ago, our board, uh, did authorize a larger increase this year than last year, 4 cents per share on an annualized basis. Almost 5% to 87 cents per share. Again, a result of the strong earnings in 2025. And what we think is going to be a solid 20206,

On 514, you'll see our earnings per share uh guidance for 2026 and the range. Again, we think there are some headwinds Tim and Tommy's talked about inflationary pressures. Those are still very real obviously the rate making will hopefully all set some of that.

So we do have a little bit of a wider range than the normal here, but based on some of the uncertainty in 2026 again with volume, deliveries weather.

And the rate making we feel like the range is appropriate.

You can see also, the slide does highlight the impact of those housing authority projects.

In 2024 and 2020.

Like to add.

You know, we're already 2 months into physical 2026 and, uh, it is a, it is a more challenging year. Uh, already than 2025 again for the items, we've talked about their

But we're doing our best again to work through that and uh manage through that. We finally have had some cold weather uh set into the REO region here in the last week and a half and it looks like we're going to have another week and a half or cold weather that should be helpful. But again I'd like to take 1 more opportunity to to thank our

Our customers and especially our employees for working safely. Safety is our number 1 priority working diligently to serve the customer

We're excited about economic development in the region. We continue to participate in a meaningful way on that. And, um, with that, I think we'll, uh,

uh, conclude our prepared remarks, and open the line for questions.

Pound pound 1, to unmute your line.

If you'd like to ask a question, pound pound 1.

Good morning, everyone.

Well, good morning. Mike. How are you?

Doing well, sir.

We're doing great. Thank you.

Your comments here on.

Whether?

I take it. It's uh, tracking favorably versus last year.

Yeah, the we we started off. We had some strange weather patterns in October and November part of the challenge there. Um, October had a lot of heating degree days but we really didn't see the volume because of the dispersion of those heating Degree Days.

If you look at the Henry Hub, future prices and the NX future prices of natural gas. It feels like nationally

I recall, certainly not this early in the year.

And then MVP, they've got a lot of projects going.

Uh, any Capital requirements from you in 2026?

yeah, I met hand that 1 over to Tim

Sure, uh, Mike. We have as part of the refinancing that we did. We set up.

Uh, 2 facilities, uh to uh, fund the investment in boost and in Southgate. So uh, we expect that that will uh,

Come straight through. Uh, what we borrow it includes uh over the course of the next several years. Uh, our investment in those projects will probably total uh, 4 to 5 million dollars with maybe the first uh,

Million to million and a half this year.

Okay.

And then uh, I guess my question uh, Paul you

You kind of sidestepped it a little bit on the uh the data centers. Just wondering if there's been any anything, you can share their as to, uh,

What it's looking like.

Yeah. Happy to maybe give a little context from the the state lens and then we can zero into the region here. Um, there's been

a a lot of announcement uh in the last 3 to 6 months, um across the state of Virginia, a fair amount of it, in fact, in the Richmond and Fredericksburg areas, um, Google announced

Back in August approximately 9 billion dollars of investment. For 3 data centers, sort of South and just to the southwest of Richmond.

It was a very large announcement um, about a week and a half ago with the governor and Caroline County, which is just North of Richmond, sort of between uh, Richmond and Fredericksburg. So the

Uh, the state through, I would say the governor's office, and our Virginia Economic Development partnership continues to be active in this area.

Sort of lifted this region a little bit higher in the, in the, um, in the, the windshield, if you will, of some of the folks that do this kind of development. Obviously, Google's willing to

consider making an investment here and in fact, buying property to do to do so.

It's um it's noticeable. So um what we're hearing Mike is I think, you know, there'll be more uh precise announcement around Google's intentions in the region in 2026. I don't know that there's been a a per se date or or time frame for that to happen. But um that that's what we're hearing.

All right, welcome.

Want a nice quarter gentleman.

Have a great rest of your day.

Well, thank you so much for joining us. Mike always good to have you.

Do we have any other questions you can?

Use pound pound 1, to unmute your line.

We'll wait, just a moment more.

all right, it doesn't

Uh, seem like there are any further questions at this time.

So this will conclude our our fourth quarter in physical 20125, earnings call.

On behalf of.

All of us here.

At rgc resources. We appreciate you taking time to join us. This morning. We wish you.

A Merry Christmas and a safe and prosperous 2026. And we look forward to speaking with you, in February.

To review. 2026 first quarter results. Thank you.

Q4 2025 RGC Resources Inc Earnings Call

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