RGC Resources Inc.

Good morning, and thank you for joining us as we discuss RGC Resources' 2026 First Quarter Results. I am Kelsey Davenport, Director of Finance for RGC Resources, Inc. I am joined this morning by Paul Nestor, President and CEO of RGC Resources, Tim Mulvaney, our VP, Treasurer, and Chief Financial Officer, and Tommy Oliver, our Senior Vice President of Regulatory and External Affairs. Let's review a few administrative items. We have reached all lines and ask that all participants remain muted. 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. Turning to slide one, this presentation contains forecasts, projections, and comments about earnings, capital spending, and gas prices. Slide 1 has information about risks and uncertainty, including forward-looking statements that should be understood in the context of our public filing. Slide 2 contains our agenda. We will discuss our operational and financial highlights for the first quarter of our 2026 fiscal year. We will then review our outlook for the rest of the 2026 fiscal year, including an eventful January, with time allotted for questions at the end. I will now turn the presentation over to Paul.

Thank you, Kelsey, and good morning. We are on slide three. Main extensions and renewal activity in the first quarter of fiscal 2026 was steady. We installed .6 new main miles in the first quarter and connected 196 new services, which is almost exactly the same as last year with 197 new services in the first quarter of 2025. Just a comment there. Main miles are down a little bit. Last year we had 1.1 new main miles. Some of that's dependent on weather. We've actually got an outstanding backlog of new main to install approximately 13,000 feet or two and a half miles. In addition, we renewed through our SAVE program 117 services in the first quarter of this year, which is an increase of 80% over last year. Together, This investment demonstrates our continued commitment to enhance safety and reliability for our customers, as we've been doing for many, many years now. Slide four shows our delivered gas volumes for the quarter. Total volumes were flat compared to Q1 last year. One large industrial customer decreased their natural gas usage from their record levels of a year ago. However, residential usage was up 8%, and other commercial volumes increased primarily due to the 11% increase in heating degree days compared to quarter one last year. Slide five shows capital expenditures for the first quarter of fiscal 2026, and those are compared to the prior year. Total spending of $5.6 million was flat for the same period of last year. Weather was mixed. In the quarter this year, we did have some snow and wet weather in early December, which hampered us a little bit. I will now turn the presentation over to our Chief Financial Officer, Tim Mulvaney, to review the financial results for the quarter. Tim?

Thank you, Paul. Moving to slide six, we had a steady quarter with grown-up gas margins up nominally and lower interest expense as the Fed lowered interest rates. This was more than fully offset by higher costs for personnel, IT, property taxes, and depreciation. Net income of $4.8 million or 47 cents per share compared to a net income in the same quarter a year ago of $5.3 million or 51 cents per share. We filed an expedited rate case in December with interim rates that began on January 1st. Tommy will discuss the rate case in greater detail in just a minute. The MVP pipeline continues to perform well, and our year-over-year financial results from our investment were as expected and in a similar magnitude to a year ago. Our balance sheet remains strong. One item to bring to your attention is that $15 million note, which matures in August for Roanoke Gas, is now in current liabilities. We fully expect to refinance this note in the coming months and have begun preliminary conversations with our financial institution. I will pass the presentation back to Paul and Tommy to address some of the developments in late January's code stamp across the eastern half of the United States, as well as our expectations for 2026, including the rate case, capital, and earnings per share. We will then take your questions.