Paul Nester
Management
Good morning. I'm Paul Nester, President and CEO of RGC Resources Inc. Welcome and thank you for joining us as we discuss RGC Resources Second Quarter 2020 results. First, I would like to go over a few administrative items. We have muted all lines and asked that all participants remain muted. After the presentation is completed, we will take questions. And the link to today's presentation is available on the Investor and Financial Information page of our website www.rgcresources.com. Now, let's begin our presentation. Slide 1, presents our forward-looking statements disclaimer. This presentation does contain forecasts and projections. As outlined on slide 2, we will begin with a review of second quarter results followed by a discussion of the impacts from the COVID-19 pandemic and conclude with the outlook for the remainder of fiscal 2020. We will take questions after the presentation. As noted on slide 3, through the first six months of fiscal 2020 Roanoke Gas continued to experience consistent growth in its customer base. The COVID-19 pandemic restrictions instituted in the second half of March broke this trend. Firm delivered volumes were down approximately 18% from the prior year due to 19% warmer weather as noted on slide 4. Transportation and interruptible volumes were strong in the current quarter, primarily driven by a multi-fuel customer that significantly increased tenfold actually its natural gas usage during the quarter. As shown on slide 5, fiscal 2020 year-to-date total volumes delivered declined 7% compared to last year. Mirroring the trends of the quarter the first six months of fiscal 2020 was 14% warmer than the prior year. Again, the increase in industrial volumes offset the decrease in our residential and commercial classes, and were primarily attributable to the customer just mentioned. Moving on to slide 6, the pandemic restrictions have not yet impacted our capital project plans and hence our capital spending. We invested approximately $10.4 million in Roanoke Gas utility plant during the first half of fiscal 2020. This is a 5% decrease compared to the same period in 2019. The second quarter of 2019 was slightly elevated due to materials purchases for our two MVP interconnects or gate stations. I would like to highlight one project the Blue Ridge main extension, a 7,000 foot 6-inch steel pipe and 4,500 foot 4-inch and 2-inch plastic pipe project one of the largest capital projects by dollar value in Roanoke Gas history, and the largest capital project planned for fiscal 2020. It is on schedule with $1.8 million of spending fiscal year-to-date. Randy Burton, our CFO he's with me today will now walk us through our earnings highlights. Randy?