Attached files
| file | filename |
|---|---|
| 10-K - 10-K - RGC RESOURCES INC | rgco-9302017x10kxq4.htm |
| EX-32.2 - EXHIBIT 32.2 - RGC RESOURCES INC | rgco-ex322x9302017xq4.htm |
| EX-32.1 - EXHIBIT 32.1 - RGC RESOURCES INC | rgco-ex321x9302017xq4.htm |
| EX-31.2 - EXHIBIT 31.2 - RGC RESOURCES INC | rgco-ex312x9302017xq4.htm |
| EX-31.1 - EXHIBIT 31.1 - RGC RESOURCES INC | rgco-ex311x9302017xq4.htm |
| EX-23 - EXHIBIT 23 - RGC RESOURCES INC | rgco-ex23x9302017xq4.htm |
| EX-21 - EXHIBIT 21 - RGC RESOURCES INC | rgco-ex21x9302017xq4.htm |
| EX-10.O - EXHIBIT 10.O - RGC RESOURCES INC | ex10o-saltvillegasstoragec.htm |
| EX-10.II - EXHIBIT 10.II - RGC RESOURCES INC | ex10ii-amendedandrestatedr.htm |
| EX-10.F - EXHIBIT 10.F - RGC RESOURCES INC | ex10f-columbiagastransmiss.htm |
2017 Annual Report
519 Kimball Avenue, NE
P.O. Box 13007
Roanoke, Virginia 24030-3007
www.rgcresources.com
Facebook.com/RoanokeGas
Twitter.com/RoanokeGas
Trading on NASDAQ as RGCO
To Our Shareholders:
The past year has been exciting for our Company. We experienced our third consecutive year of record
earnings at $6.2 million, or $0.86 per share, an increase of 7% over 2016. In January, the Board of
Directors approved a 3-for-2 stock dividend payable March 1, 2017, and in June, RGC Resources was
added to the Russell 2000 for the first time in our history. Our market capitalization also increased
from approximately $120 million to over $190 million in 2017. Building on this success, our Board
approved a 6.9% dividend increase to $0.62 per share. The February 2018 dividend will reflect 73
years of continuous quarterly dividend payments and 14 consecutive years of annual dividend
increases.
In late 2017, Roanoke Gas Company capped off a 25-year project replacing the last of the bare steel
and cast iron mains in its natural gas distribution system. We also completed the largest single capital
project in the Company’s history, a $6 million automated meter reading (AMR) installation. This
modern technology platform will provide more real-time data and reduce costs.
Roanoke Gas continues to experience consistent customer growth. Several large industrial customers
have either opened new facilities or expanded and modernized existing facilities. Looking forward, we
anticipate continued large commercial customer growth as economic development in the Roanoke
Valley is strong. We also added approximately 620 new residential and small commercial customers in
2017. We believe these trends will continue.
We continue to invest in capital improvements for Roanoke Gas. In 2017, we invested $20.7 million,
the largest annual amount in Roanoke Gas history. In addition to supporting customer growth and
implementing AMR, we replaced 9 miles of first generation plastic mains. We anticipate the first
generation plastic main replacement project to take approximately 3 to 4 years to complete. In
addition to this project, our plans for 2018 include the renewal of one major gate station and several
large main extension projects.
The Mountain Valley Pipeline (MVP) project received its FERC certificate in October and is planning to
begin construction in early 2018. The MVP will address the growing demand for natural gas in our
region, add an additional source of gas to the Roanoke Gas supply portfolio and provide the Company
with the opportunity to expand natural gas service to Franklin County, Virginia, a previously unserved
area. This strategic investment complements our core business and continues to enhance shareholder
value.
Finally, Mr. George Logan is retiring after 15 years of service to our Board of Directors. A corporate
governance expert with vast business and academic experience, Mr. Logan made significant
contributions to the Company’s growth and success during his tenure.
On behalf of our Board of Directors and employees, thank you for your continued interest in our
Company and for your ongoing decision to invest in RGC Resources.
John S. D’Orazio
President & Chief Executive Officer
PRESIDENT’S LETTER
DIVIDEND REINVESTMENT AND STOCK
PURCHASE PLAN INQUIRIES
Through the Company’s Dividend Reinvestment
and Stock Purchase Plan, shareholders of record
are offered a convenient way to acquire and
reinvest cash dividends in additional shares of the
Company’s common stock and avoid commissions
or other charges. Additionally, shareholders are
given on-line access to make transfers, consolidate
accounts, replace stock certificates and dividend
payments, set-up direct deposit, update personal
information and much more. Broadridge Corporate
Issuer Solutions administers the plan and is the
agent for participants. For more information,
inquiries may be directed to RGC Resources, Inc.,
Shareholder Information Services, P.O. Box 13007,
Roanoke, VA 24030, (540) 777-3853.
ANNUAL REPORT AND 10-K
This annual report, 10-K and the financial
statements contained herein are submitted
to the shareholders of the Company for their
general information and not in connection
with any sale or offer to sell, or solicitation
of any offer to buy, any securities.
ANNUAL MEETING
The annual meeting of shareholders of the
Company will be held at The Hotel Roanoke
and Conference Center, 110 Shenandoah
Avenue, Roanoke, Virginia, 24016 on
Monday, February 5, 2018, at 9:00 a.m.
Proxies for the annual meeting will be
requested from shareholders when notice of
meeting, proxy statement and form of proxy
are mailed on or about December 15, 2017.
CORPORATE INFORMATION
Nancy Howell Agee
President & CEO, Carilion Clinic
Abney S. Boxley, III
President & CEO, Boxley Materials Company
John S. D’Orazio
President & CEO, RGC Resources, Inc.
Maryellen F. Goodlatte
Attorney & Principal, Glenn Feldmann, Darby & Goodlatte
J. Allen Layman
Private Investor
George W. Logan
Principal, Pine Street Partners, LLC
S. Frank Smith
Consultant, Alpha Coal Sales Company, LLC
Raymond D. Smoot, Jr.
Chairman, Union Bankshares Corporation
John B. Williamson, III
Chairman of the Board