RGC Resources Inc. (RGCO) has reached a new 52-week high, with its stock price soaring to $23.1. This milestone marks a significant achievement for the company, reflecting a robust performance in the market. Over the past year, RGCO has demonstrated a strong upward trend, with its 1-year change data showing an impressive increase of 12.35%. This growth underscores the company's resilience and its ability to deliver value to its shareholders, even in a challenging economic environment. The new 52-week high serves as a testament to RGCO's solid financial performance and its potential for future growth.
In other recent news, RGC Resources reported its 2024 second quarter results, indicating a steady performance amid inflationary pressures and higher interest rates. The company experienced a slight dip in operating income but saw an uptick in net income, largely due to the AFUDC from its investment in the Mountain Valley Pipeline (MVP). The MVP is nearing its operational status, which could significantly affect RGC Resources' gas supply costs and efficiency.
The company's customer base grew to 63,660, and gas volumes increased by 9% due to colder weather and higher industrial throughput. The second quarter net income rose to $6.4 million, with earnings per share (EPS) at $0.63. RGC Resources also filed a general rate case seeking an increase in base rates to offset rising costs and inflation.
RGC Resources anticipates the MVP to start operations by May 23, 2024, with shipper contracts active from June 1. The company's capital investment plan for 2024 remains steady, with a slight increase from the previous year. Earnings guidance for 2024 remains unchanged, with the second half of the year expected to be influenced by the new rate case and MVP operations.
InvestingPro Insights
RGC Resources Inc. (RGCO) not only hit a new 52-week high but also shows strong fundamentals that could interest investors. With a market capitalization of $233.35 million and a P/E ratio of 17.44, the company presents a stable investment profile. One of the most notable InvestingPro Tips for RGCO is its impressive track record of raising its dividend for 10 consecutive years, showcasing a commitment to returning value to shareholders. Additionally, RGCO has maintained dividend payments for an impressive 31 consecutive years, which may be particularly appealing for income-focused investors.
On the performance front, RGCO has seen a robust return over the last month, with a 1-month price total return of 15.27%. This momentum is further reflected in the company's year-to-date price total return of 16.03%. For those looking for more insights and tips, there are additional InvestingPro Tips available, which can be explored with a subscription. Potential subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of investment knowledge and analysis.
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