RGC Resources, Inc. (NASDAQ:RGCO) Q3 2022 Earnings Conference Call August 11, 2022 9:00 AM ET
Company Participants
Paul Nester - President, CEO
Jason Field - CFO
Tommy Oliver - VP, RA&S
Kelsie Davenport - DoF
Conference Call Participants
Paul Nester
Good morning. I'm Paul Nester, President and CEO of RGC Resources. Thank you for joining us as we discuss RGC Resources 2022 third quarter results. Let's review a few administrative items. We have muted all lines [Operator Instructions].
The link to today's presentation is available on the Investor and Financial Information page of our website at www.rgcresources.com. Joining me today is Jason Field, our Chief Financial Officer; Tommy Oliver, our Vice President in Regulatory Affairs and Strategy; and Kelsie Davenport, our Director of Finance.
Okay. Let's go to Slide 1. We do have forward-looking projections and forecast in this presentation and this is our disclaimer of such. The agenda is on Slide 02. We're going to start with an update of our operational results for the quarter. Jason will then discuss our delivered natural gas volumes and financial results. Tommy is going to give us a nice update on our Renewable Natural Gas project and I will conclude with a discussion of the outlook for the remainder of fiscal 2022. Moving to Slide 03. Our operational results continued to be impressive in 2022. Customer additions are up 17% for the first 09 months when compared to 2021. New main miles are ahead 12% at 2021, third one just over 5.5 miles. You may recall that last year was also a significant increase over historical norms for new customers in main miles. Since October 2022, we've installed over 12 miles of new main, it's just an outstanding result.
We believe the new customer main addition trend would continue through fiscal year-end. As you reviewed our recently filed 10-Q carefully, you may have noticed that from the March quarter to the June quarter, our total customer count receded from 63,000 in March to approximately 62,400 or 62,600 customers. This was due to customer turnoffs for nonpayment. And as this change is more pronounced than prior period, we thought it's worth discussing. Service disconnection moratorium was prohibitive, customer turnoffs for nonpayment during the pandemic was lifted in late summer of 2021. However we did not begin turning off customers until the winter season concluded here in March of 2022. So, at the March of 2022 to June of 2022, we turned off just over 900 customer accounts for nonpayment. The pre-pandemic history is an indicator, we expect a large number of these customers to make necessary payments and request service this fall with the arrival of colder weather.