RGC Resources Inc (RGCO) 2026 Q2 法說會逐字稿

Good morning, and thank you for joining us as we discuss RGC Resources' 2026 second-quarter results. I'm Kelsie Davenport, Director of Finance of RGC Resources, Inc., and I'm joined this morning by Paul Nester, President and CEO of RGC Resources; Tim Mulvaney, our VP, Treasurer and Chief Financial Officer; and Tommy Oliver, Senior Vice President of Regulatory and External Affairs.

各位早安，感謝各位加入我們，一同討論 RGC Resources 2026 會計年度第二季業績。我是 RGC Resources, Inc. 財務總監 Kelsie Davenport。今天早上與我一同出席的還有：RGC Resources 總裁暨執行長 Paul Nester；副總裁、財務主管暨財務長 Tim Mulvaney；以及法規與對外事務資深副總裁 Tommy Oliver。

I'll review a few administrative items. (Operator Instructions) The link to today's presentation is available on the Investor and Financial Information page of our website at www.rgcresources.com. At the conclusion of the presentation and our remarks, we will take questions.

我先說明幾項行政事項。（接線員指示）今日簡報的連結可於我們網站 www.rgcresources.com 的「投資人與財務資訊」頁面取得。簡報與我們的發言結束後，我們將開放提問。

Turning to slide 1. This presentation contains forecasts and projections. Slide 1 has information about risks and uncertainties, including forward-looking statements that should be understood in the context of our public filings. Slide 2 contains our agenda. We will discuss operational and financial highlights for the second quarter and first six months of our 2026 fiscal year.

請看投影片 1。本簡報包含預測與推估。投影片 1 提供風險與不確定性相關資訊，包括前瞻性陳述；應結合我們公開申報文件的內容一併理解。投影片 2 為議程。我們將討論 2026 會計年度第二季及前六個月的營運與財務重點。

We will then review our outlook for the rest of the 2026 fiscal year with time allotted for questions at the end. I will now turn the presentation over to Tommy.

接著我們將檢視 2026 會計年度其餘期間的展望，並在最後保留時間回答問題。現在我把簡報交給 Tommy。

Well, thank you, Kelsie, and good morning, everyone. Turning now to operations on slide 3. Main extensions and renewal activity for the first half of fiscal 2026 were steady. We installed 2.7 main miles, a similar total to the main miles installed in the first half of fiscal 2025. In addition, we connected 340 new services in 2026, which was close to the 359 connections from 2025, evidence that residential development continued across the region in the first half of the fiscal year.

謝謝你，Kelsie，各位早安。現在請看投影片 3 的營運部分。2026 會計年度上半年，主管線延伸與汰換更新活動維持穩定。我們新設 2.7 英里主管線，與 2025 會計年度上半年新設的主管線英里數相近。此外，2026 年我們新增接通 340 戶新用戶，接近 2025 年的 359 戶，顯示本會計年度上半年區域內住宅開發仍持續進行。

As shown on the right side of the slide, we renewed 1.5 miles of main and 196 services during the first half of the 2026 fiscal year. While the main miles renewed were down in part due to weather compared to the same period last year, the service renewals increased by almost 25%. Let's move to slide 4, where we show our delivered gas volumes for the quarter. Despite an extreme cold spell in late January and early February, the quarter as a whole was warmer compared to the same quarter in the fiscal 2025 year. Total volumes were down 5% compared to the second quarter of 2025.

如投影片右側所示，2026 會計年度上半年我們更新汰換 1.5 英里主管線及 196 條用戶支線。雖然因天候因素，主管線汰換英里數較去年同期下降，但用戶支線汰換量增加近 25%。接著看投影片 4，我們將展示本季的天然氣輸送量。儘管 1 月下旬至 2 月上旬出現極端寒流，但整體而言，本季仍較 2025 會計年度同季偏暖。總輸送量較 2025 年第二季下降 5%。

Residential and commercial volumes were both down approximately 5% and heating degree day -- were heating degree days were down 2% compared to the quarter two of fiscal 2025. Let's move to slide 5. The story of delivered gas volumes was a little different in the first six months of the fiscal 2026, despite the larger number of heating degree days.

住宅與商業用量皆約下降 5%，而暖房度日數（heating degree days）較 2025 會計年度第二季下降 2%。接著看投影片 5。儘管暖房度日數較多，2026 會計年度前六個月的輸送量情況略有不同。

Total volumes were down 3% compared to the first half of fiscal 2025 with the decline in industrial usage primarily attributable to one customer being the main reason. Unlike the quarter, heating degree days for the six months increased 3% as the first 6 months of the fiscal year were colder than the prior year.

總輸送量較 2025 會計年度上半年下降 3%；其中工業用量下滑主要歸因於單一客戶。不同於單季表現，六個月的暖房度日數增加 3%，因本會計年度前六個月較前一年更冷。

Let's move to slide 6, where we'll talk about CapEx. CapEx for the first half of fiscal 2026 compared to 2025. Total spending was $9.8 million in the current year, down approximately 8% over the same period a year ago. Winter weather related to Winter Storm Fern in late January and early February affected our spending. We picked back up in March and we'll discuss plans for the remainder of the year later in the presentation.

接著看投影片 6，我們將談資本支出（CapEx）。比較 2026 會計年度上半年與 2025 年：本年度總支出為 980 萬美元，較去年同期約下降 8%。1 月下旬至 2 月上旬的冬季風暴 Fern 所帶來的冬季天候影響了我們的支出進度。我們在 3 月已恢復推進，並將在簡報稍後討論今年其餘期間的計畫。

I'm going to now turn it over to our CFO, Tim Mulvaney, to review our financial results for the quarter. Tim?

接下來我把時間交給我們的財務長 Tim Mulvaney，請他說明本季財務結果。Tim？

Thank you, Tommy. Moving to slide 7. This shows both our second-quarter and first-half results for fiscal '26. We had a robust quarter with increased Roanoke gas margins due to the rates that went into effect January 1, combined with higher earnings from our unconsolidated affiliate, MVP, and lower interest expense to overcome higher expenses related to investment in our gas system and inflationary pressures, which remain higher than the Fed's 2% target.

謝謝你，Tommy。請看投影片 7。此處呈現 2026 會計年度第二季與上半年業績。我們本季表現強勁：Roanoke Gas 因 1 月 1 日生效的費率而帶動毛利增加；同時，我們未合併之關聯企業 MVP 的獲利貢獻提高，利息費用也下降，足以抵銷因天然氣系統投資與通膨壓力所帶來的費用上升；而通膨仍高於聯準會 2% 的目標。

Net income of $8.7 million or $0.84 per diluted share compared to net income in the same quarter a year ago of $7.4 million or $0.74 per diluted share, a 14% increase. The year-to-date results are also shown on slide 8. The strong Q2 results drove the six-month performance as well as the first quarter did not have the benefit of the January rates.

淨利為 870 萬美元，或稀釋後每股盈餘 0.84 美元；相較去年同期淨利 740 萬美元、稀釋後每股盈餘 0.74 美元，增加 14%。截至目前的年度累計結果亦於投影片 8 顯示。第二季的強勁表現也帶動六個月的整體績效，因第一季未能受惠於 1 月調整後的費率。

Net income was $13.6 million in the first half of 2026 or $1.31 per diluted share compared to $1.26 per diluted share in the first half of fiscal 2025, a 5.3% increase. A reminder about the seasonality of our industry. With recent ratemaking activity, much of our revenue is generated through volumetric factors.

2026 年上半年淨利為 1,360 萬美元，或稀釋後每股盈餘 1.31 美元；相較 2025 會計年度上半年稀釋後每股盈餘 1.26 美元，增加 5.3%。也提醒各位本產業具有季節性。隨著近期的費率制定（ratemaking）活動，我們相當一部分的營收係透過與用量相關的因素（volumetric factors）產生。

And accordingly, our performance in the back half of the year when volumes are lower inevitably results in fewer revenues and profits. Paul will discuss our outlook for the remainder of 2026 in a few moments. Moving forward to slide 8. Our balance sheet remains strong. We do have a $15 million note at Roanoke Gas that matures in August that is included in our current maturities of long-term debt.

因此，在下半年用量較低時，我們的表現不可避免地會帶來較少的營收與獲利。Paul 將在稍後說明 2026 年其餘期間的展望。接著看投影片 8。我們的資產負債表仍然穩健。不過，Roanoke Gas 有一筆 1,500 萬美元的票據將於 8 月到期，並已列入長期負債的流動到期部分。

We are deep in conversations with our lenders to refinance this note. We have long known that we would be unable to replicate the 2% rate that we have enjoyed. The discussions with lenders have been positive and should allow us to refinance this note at a rate consistent with our plans. We will have more to share on this in the near term.

我們正與貸款機構深入洽談以進行該票據的再融資。我們早已知道無法再複製先前享有的 2% 利率。與貸款機構的討論進展正面，應可使我們以符合既定規劃的利率完成再融資。我們近期將分享更多資訊。

I will now pass the presentation to Paul Nester, our CEO. Paul?

現在我把簡報交給我們的執行長 Paul Nester。Paul？

Good morning, and thank you, Tim. We have a few topics that we would like to discuss concerning the second half of 2026. These are listed on slide 9. Before we get into the details of those, I do want to again thank our customers and employees for an outstanding winter performance. We discussed this a little bit on the first quarter call when we were just coming out of Winter Storm Fern, but our system just performed admirably during that period.

各位早安，謝謝你，Tim。我們有幾個想就 2026 年下半年討論的主題，列於投影片 9。在進入細節之前，我想再次感謝我們的客戶與員工在冬季期間的出色表現。我們在第一季電話會議中、當時剛從冬季風暴 Fern 影響中恢復時，曾稍微提到這點；但在那段期間，我們的系統確實表現得非常出色。

Our employees performed admirably and safely and also the customers. So again, we had an outstanding winter heating season. And again, just are appreciative of our employees and customers. We're here to serve our customers. We did have a couple of challenges that arose in the second quarter.

我們的員工表現出色且作業安全，客戶也是如此。因此，我們再次迎來了一個傑出的冬季供暖季。我們再次對員工與客戶心懷感謝。我們在此是為了服務客戶。第二季確實出現了幾項挑戰。

One of our top five customers by volume, a long-time manufacturer in the Roanoke Valley, in fact, over 60 years, idled their operations in March. And we really have great care and concern for the employees at that operation who lost their jobs in that process. Many of them had been there many, many years. And as Tim said, it's a headwind really into the second half of 2026. Again, they were a large gas customer.

我們按用量計算的前五大客戶之一——位於羅阿諾克谷、事實上已營運逾 60 年的長期製造商——於 3 月暫停了其營運。我們對該廠在此過程中失去工作的員工深表關切與同情，其中許多人已在那裡工作多年。正如 Tim 所說，這確實會在 2026 年下半年形成逆風。再次強調，他們是大型天然氣客戶。

Tommy will talk about the ratemaking impacts of that event in just a few moments. Another challenge was described in our 10-Q, which we filed yesterday afternoon. We had some damage at our LNG peak shaving facility in the middle of the quarter. We have hired tank experts and other experts to help us assess the cause and nature of this damage and to potentially design some solutions to remediate it. The outcome of that is that we do not expect to have use of our LNG peak shaving facility in the coming winter season.

Tommy 將在稍後幾分鐘內談到該事件對費率制定的影響。另一項挑戰已在我們的 10-Q 中說明，我們於昨天下午提交了該文件。本季中段，我們的 LNG（液化天然氣）調峰設施發生了一些損壞。我們已聘請儲槽專家及其他專家協助評估損壞的原因與性質，並可能設計一些補救方案以修復。其結果是，我們預期在即將到來的冬季將無法使用我們的 LNG 調峰設施。

We have begun intense and thorough planning for that event and to provide service without the facility. As we disclosed in the 10-Q, right now, we're unable to estimate the costs associated with this event, and we're unable to estimate the investment required to possibly repair or if needed, replace the tank. Tommy will also incorporate the ratemaking impacts of that into his comments. We will, of course, continue to update you in future communications and/or SEC filings as more facts about this become known.

我們已開始就該事件進行密集且周全的規劃，以在沒有該設施的情況下提供服務。正如我們在 10-Q 中揭露的，目前我們無法估計與該事件相關的成本，也無法估計可能需要的投資金額——用於修復，或如有需要則更換儲槽。Tommy 也會在他的評論中納入其對費率制定的影響。當關於此事的更多事實逐步明朗時，我們當然會在未來的溝通及／或向 SEC 提交的文件中持續向各位更新。

But I am going to turn it over to Tommy to give us an update on our pending rate case. Tommy?

不過，我將把時間交給 Tommy，請他向我們更新目前待決的費率案件。Tommy？

Yeah. Thank you, Paul, and we're moving to slide 10 now. As we discussed in our most recent earnings call, Roanoke Gas filed an expedited rate case on December 2, seeking approximately $4.3 million in incremental annual revenues based on our current authorized return on equity of 9.9%. The interim rate became effective January 1, 2026, subject to refund. The SEC staff is in the process of their audit and is scheduled to file testimony in June.

好的。謝謝你，Paul，我們現在翻到第 10 張投影片。如同我們在最近一次財報電話會議中討論的，Roanoke Gas 於 12 月 2 日提出加速審理的費率案件申請，依據目前核准的 9.9% 股東權益報酬率（ROE），尋求約 430 萬美元的年度增量收入。臨時費率已於 2026 年 1 月 1 日生效，但須視最終結果可能退費。SEC 工作人員正在進行稽核，並預計於 6 月提交證詞。

The hearing is scheduled for July 15, 2026, and we expect final resolution from the commission by calendar year end. For four months beginning in January, we were offsetting the new rates through credits on bills to return the tax credits to customers that were resolved with the IRS late in fiscal 2025 had been included with our regulatory liabilities on the balance sheet. We concluded these refunds in April.

聽證會預定於 2026 年 7 月 15 日舉行，我們預期委員會將在曆年年底前作出最終裁決。自 1 月起的四個月期間，我們透過帳單抵扣（credits）來抵銷新費率，以將於 2025 財年末與 IRS 解決的稅額抵免退還給客戶；該等稅額抵免先前已作為資產負債表上的監管負債（regulatory liabilities）列示。我們已於 4 月完成這些退費。

And as Paul mentioned just a few minutes ago, we had a large customer cease operations in the second quarter. We informed the SEC staff of this closure, and we are optimistic that the SEC staff will incorporate the expected decline in usage over the coming year into their recommended revenue requirement when they file testimony in June.

此外，正如 Paul 幾分鐘前提到的，我們在第二季有一位大型客戶停止營運。我們已將此關閉情況告知 SEC 工作人員，並對 SEC 工作人員在 6 月提交證詞時，會將未來一年預期用量下降納入其建議的收入需求（revenue requirement）感到樂觀。

Regarding the damage that occurred to our LNG facility, we have alerted staff of this situation and have held discussions with staff regarding the establishment of a regulatory asset for these costs. So Paul, I'm going to turn it over to you.

關於我們 LNG 設施所發生的損壞，我們已提醒工作人員注意此情況，並已就為這些成本設立監管資產（regulatory asset）與工作人員進行討論。因此，Paul，我把時間交回給你。

Thank you, Tommy. I continue to be pleased with the work of Tommy and his team and really our whole company and our relationships with the State Corporation Commission, not only in the ratemaking side, but also in the safety aspect. So thank you for all that good work there. We're on slide 11. Our capital spending forecast remains at $22 million for the fiscal year.

謝謝你，Tommy。我持續對 Tommy 與其團隊的工作，以及其實我們整個公司與州公司委員會（State Corporation Commission）的關係感到滿意——不僅在費率制定方面，也在安全方面。因此，感謝大家在這方面的出色工作。我們現在在第 11 張投影片。我們對本財年的資本支出預測仍維持在 2,200 萬美元。

We have rebalanced the mix of spending just slightly from what we presented at the end of the first quarter. And again, as more facts become known about our LNG facility, we will continue to be flexible to reposition certain investments as needed or even add to this capital -- potentially add to this capital spending plan. On slide 12, with the strong second quarter that Tim reviewed, we've both narrowed and raised our 2026 earnings per share range. On the lower end, we're at $1.31. And on the higher end, we've moved it up to $1.37.

相較於我們在第一季末所呈現的內容，我們已對支出組合做了些微再平衡。同樣地，隨著我們的 LNG 設施有更多事實逐步明朗，我們將持續保持彈性，視需要重新調整某些投資配置，甚至可能增加資本——也就是可能增加這項資本支出計畫。在第 12 張投影片，隨著 Tim 所回顧的強勁第二季表現，我們已同時縮窄並上調 2026 年每股盈餘（EPS）區間。下緣為 1.31 美元，上緣則上調至 1.37 美元。

I think Tim's reminder about the seasonality is important. Obviously, the third and fourth quarters will not look like the first and second quarters from an earnings standpoint. We continue to see the same macroeconomic concerns that we've really been talking about now for several quarters. Our practical inflation remains above the 2% level that the Fed targets. We are constantly throughout the organization looking for ways to be more efficient and to save and manage expense.

我認為 Tim 對季節性的提醒很重要。顯然，從獲利角度來看，第三季與第四季不會像第一季與第二季那樣。我們仍看到相同的總體經濟疑慮，這些其實已經談了好幾季。我們的實際通膨仍高於聯準會目標的 2% 水準。我們在整個組織中持續尋找提高效率、節省並管理費用的方法。

Interest rates, Tim talked about the refinancing of that note. Certainly, the global situation has caused the interest rate market to be volatile within a range, but still volatile. And we're working with our debt partners almost on a daily basis to optimize that refinancing. But the local economy, and we've said this as well for several years now, continues to be steady. The Google data center is moving forward.

利率方面，Tim 談到了那筆票據的再融資。全球局勢確實使利率市場在一定區間內波動——但仍然波動。我們幾乎每天都與我們的債務合作夥伴合作，以最佳化該再融資。但本地經濟——我們也已經這麼說了好幾年——仍然穩健。Google 資料中心計畫正在推進。

There's been a few other positive announcements recently across the Roanoke Valley. Our teams continue just to work every day with economic development, contractors and other folks that are facilitating this growth, and we do everything we can to support that.

最近在羅阿諾克谷還有一些其他正面的公告。我們的團隊每天持續與經濟發展單位、承包商及其他促成這項成長的人士合作，我們也盡一切所能來支持這些發展。

With that, we would love to entertain any questions that you may have. (Event Instructions) We'll wait just a few more moments in case anyone has a question. (Event Instructions)

接下來，我們很樂意回答各位可能有的任何問題。 (Event Instructions) 我們再稍等片刻，以防有人有問題。 (Event Instructions)

Okay. Well, hearing no questions from the audience, this does conclude our prepared remarks. Our team will be at the AGA Financial Forum in about 10 days, and we hope to have the opportunity there to greet and visit with many of our investors and financing partners there. But certainly, we wish the rest of you to have a safe and pleasant summer, and we look forward to speaking with you again in August to review our 2026 third-quarter results. Thank you.

好的。既然沒有聽到觀眾提問，我們的預備發言到此結束。我們的團隊將在約 10 天後出席 AGA Financial Forum，我們希望能在那裡有機會與許多投資人及融資合作夥伴致意並交流。不過，我們也祝福其餘各位度過一個安全愉快的夏天，並期待在 8 月再次與各位通話，回顧我們 2026 年第三季的業績。謝謝。