RGC Resources Inc.

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Good morning, and thank you for joining us as we discuss RGC Resources 2025 first quarter results. I am Tommy Oliver, Senior Vice President, Regulatory and External Affairs for RGC Resources, Inc. I am joined this morning by Paul Nestor, our President and CEO, and Tim Mulvaney, our VP, treasurer, and chief financial officer. But before we get started, I want to review a few administrative items. First, we have muted all lines and ask that all participants remain muted. Two, the link to today's presentation is available on the investor and financial information page of our website at www.rgcresources.com. And lastly, at the conclusion of the presentation and our remarks, we will take questions. So turning to slide one. This presentation contains forecasts and projections. Slide one has information about risks and uncertainty, including forward-looking statements that should be understood in the context of our public file. Slide two contains our agenda. During our presentation, we will discuss our operational and financial highlights for the first quarter of our 2025 fiscal year. We will then review our outlook for the rest of the 2025 fiscal year with time allotted for questions at the end. So let's turn to slide three. Main extensions and renewal activity in the first quarter of fiscal 2025 were strong. We installed 1.1 main miles and connected 197 new services. This is compared to 185 new services in the first quarter of the 2024 fiscal year. In addition, we renewed 65 services during our first quarter of the 2025 fiscal year. We believe this is evidence of our continued investment in our system to enhance safety and reliability for our customers. Slide 4 shows our delivered gas volumes for the quarter. Total volumes were up 16% compared to the first quarter of 2024 as one transportation customer with the ability to fuel switch increased its consumption of natural gas. Residential and small commercial volumes were up 4% as well due to these 10% increase in heating degree days compared to quarter one of fiscal 2024. Slide five shows capex for the first quarter of fiscal 2025 compared to 2024. Total spending was $5.7 million in the current year, up 8.4% over the same period a year ago. Good weather for most of the quarter enabled strong progress on mains and services. I will now turn it over to Tim Mulvaney, our CFO, to review our financial results for the quarter. Tim?

Thank you, Tommy. Moving to slide six, we had a good quarter with increased grown-up gas margins due to higher rates, which went into effect this past July, overcoming lower equity earnings from our unconsolidated affiliate and higher interest expense. Net income of $5.3 million, or $0.51 per share, compared to net income in the same quarter a year ago of $5 million or $0.50 per share. Equity in earnings of unconsolidated affiliates was $854,000 pre-tax, which reflects our share of MVPs results compared to $1.5 million in the same quarter a year ago. Our share of the results in fiscal 2024 was entirely due to AFUDC during the construction phase compared to the current year, which reflected the operation of the pipeline. This apples to orange comparison will persist for two more quarters. As we noted on the last call, we received our first cash distribution from MVP of approximately 800,000 in October. We recently received our next quarterly distribution. Interest expense was 143,000 higher compared to the same quarter a year ago, due to higher average balance on the grown-up gas line of credit and higher interest rates on the midstream debt, which was refinanced a year ago. As a final note, the current portion of our long-term debt is $26.2 million at December 31, 2025. Primarily due to a $25 million non-revolving line related to RGC midstream, We have already initiated conversation with our lenders and others. Those conversations have been positive, and we fully expect to have refinanced this note prior to its maturity on December 31st, 2025. We also fully expect to renew our Roanoke gas line of credit next month. Paul will share comments regarding our expectations for 2025, including our growth, capital, and EPS. We will then take your questions. I will now pass the presentation to RGC CEO, Paul Nestor. Paul?