Good morning. I'm Paul Nestor, President and CEO of RGC Resources. Thank you for taking time on this Friday to join us for our Fourth Quarter and 2021 Fiscal Year Earnings Call. It's a beautiful day here in Roanoke, Virginia, and I hope you are enjoying the same wherever you are. First, a few administrative items. We've muted all lines and asked that all participants remain muted. After the presentation is completed, we will take questions. The link to today's presentation is available on the Investor and Financial Information page of our website at www.rgcresources.com. All right let's get started. Slide 1. As our forward-looking statements disclaimer, this presentation does have forecasts and projections. Our agenda for today's call is on Slide 2. As we said, we're going to review our operational and financial highlights. And I failed to mention that with me today are Tommy Oliver, our CFO, and David Garcia, our Director of Finance. As you all know, Tommy and David join us for each call. We'll also go through our 2022 outlook and again, we'll take questions at the very end. Moving onto Slide 3, our customer growth results in the Roanoke Gas Utility were outstanding in fiscal 2021. We added approximately 600 customers, I think the actual number was 597, in the fiscal year, which was 8% better than 2020. We've been talking about our main extension miles in the previous calls. We did another 2.5 miles in the fourth quarter, including Phase 2 of the Blue Ridge expansion, bringing the year-to-date total to 7 miles outstanding results, 71% increase over 2020. Moving onto Slide 4, fourth quarter volumes were really pretty good. The residential volume shows a decline of 5%. We did have a much warmer September 2021 compared to September 2020. In fact, there was a 77% decline in heating degree days in September. But the absolute dekatherm change on those residential volumes was only 9,000, so the 5% is a little misleading; it really wasn't too bad. Our overall industrial volumes continued to decline in this fourth quarter primarily due to the large customer that fuel switched from natural gas in 2020. As we've discussed previously, this customer switched back to coal in 2021. Our year-to-date volumes are up and stronger, and we've talked about that as we've gone through the fiscal year. The large customer we just mentioned really has weighed on the year-to-date industrial volumes. But if you analyze our top 10 customers, which are primarily a mix of both industrial and commercial, 8 out of those top 10 customers have increased their gas consumption in 2021. Building suppliers, auto parts manufacturing, and consumer products manufacturing continue to have noticeable year-over-year increases. Moving onto our capital spending on Slide 6. We ended up about $3 million lower than 2020. That is due to project timing as we've discussed in prior calls, as well as our project mix. We'll see in a few moments that this $3 million will roll into our 2022 capital projection or capital budget. We talked a lot, both last year and this year, about our signature project in 2020, the Blue Ridge main extension. We did get Phase 2 of Blue Ridge kicked off in July, and that actually just wrapped up a couple of weeks ago in the middle of November, which is outstanding. Two of our key projects for 2021, the Carilion expansion support project, where we invested about $1 million, and our Mason Station renewal, which went through our SAVE rider at $0.75 million, were completed in the fourth quarter. We've already discussed our customer growth and main extensions. The dollars related to those statistics we saw just a moment ago, $5.9 million, which is a 70% increase from 2020. That $5.9 million does exclude the Blue Ridge projects. Tommy will now take a few minutes and walk us through our fourth-quarter and fiscal 2021 income statement.

Well, thank you, Paul. And good morning, everybody. Our condensed consolidated statements of income are presented on Slide 7. I'm going to separately review the financial results from our two operating segments, Roanoke Gas Utility and RGC Midstream, and I wanted to start with the fourth quarter results for Roanoke Gas. Operating income for the fourth quarter of 2021 was approximately $1.5 million higher compared to the prior year's quarterly results. As we noted in prior earnings calls, we had a number of large expenses recorded in the fourth quarter of 2020. Those were namely bad debt and the accelerated recovery of certain regulatory assets. We also noted that our utilities in Virginia were operating under a moratorium on disconnections of customers for nonpayment. We're pleased to report that the moratorium and the uncertainty it created ended in late August 2021. Along with the end of the moratorium in October, the company was awarded $858,000 in ARPA funds by the Virginia State Corporation Commission. These funds were specifically designated, and I might add, were used to help our customers with their arrearage balances. Our fourth-quarter 2021 results were favorably impacted by these ARPA funds. In fact, these funds lifted earnings by $0.06 per share. Absent the ARPA funds, we would've reported a loss in the fourth quarter of 2021 as we accelerated the recovery of our deferred COVID-related expenses, and we incurred other sizable expenses related to outside professional services, among others. It is worth noting that with the write-down of the COVID-related deferrals, we no longer have regulatory assets on our books subject to the earnings test as of September 30th, 2021. Now, I'll turn to RGC Midstream. Midstream continued with its significant quarterly year-over-year decline in equity and earnings from the Mountain Valley partnership. Equity and earnings declined by over $1.1 million quarter-over-quarter. Despite this decline, earnings per share for the fourth quarter of 2021 were flat compared to a loss of $0.04 per share for the fourth quarter of 2020. For the 2021 fiscal year, operating income increased by 18% year-over-year, largely attributable to SAVE revenues and customer growth, which Paul reviewed in an earlier slide related to our main extensions and new customer addition. In addition to the impact of the ARPA funds on earnings we recorded in the fourth quarter, the company also received $400,000 of CARES Act money earlier in the fiscal year, which also dramatically reduced our bad debt expense. The strong Roanoke Gas fiscal year earnings were offset by a year-over-year $3.1 million decline in equity and earnings from the Midstream's investment in the MVP, resulting in a $1.22 earnings per share on a consolidated basis.

Thank you, Tommy. We achieved remarkable financial results in 2021. At this time last year, there was a lot of uncertainty surrounding the pandemic, particularly since the vaccine was not available until early 2022. However, this fiscal year's earnings range reflects the dedication of our employees to our company and customers, and we are very pleased with the $1.22 figure. Now, let's discuss 2022 and highlight four key points. First, capital remains a crucial driver for our earnings. We will provide an MVP update and share details about our ESG initiatives. It's a good time to inform you about our efforts, and we'll wrap up with our earnings per share forecast. Our capital plan for 2022 is $25.4 million, which is the largest budget in the company's history. The momentum for main extensions and new customer additions is ongoing, with Phase 2 wrapping up in Blue Ridge and Phase 3 starting, where we have budgeted nearly $6 million, the highest we've ever allocated for this purpose. We have one gate station left to renew, which we aim to complete this year through our SAVE Plan. This renewal process for our gate stations began in 2014, and this final project will modernize all our gate stations, which is something we take pride in. In Blue Ridge, Phase 3 involves approximately a $1 million investment to extend main lines by one-and-a-half to two miles. Additionally, we have a significant special project estimated at around $5 million in this capital budget, and we hope to announce it publicly in the coming weeks. This is an exciting opportunity with an ESG focus. Regarding the Mountain Valley pipeline, the construction for 2021 has been completed, and they have demobilized from the site, though they continue to monitor environmental impacts as needed. They had a successful year in terms of construction and project execution. The overall project is about 94% complete, and we look forward to its completion in 2022, along with the gas it will provide to the Roanoke Valley.

Yeah, Paul. I'm going to go back a little bit in our history. In 1992, we were the first utility in the state to have an infrastructure rider approved, under which we recovered the cost of replacing bare steel and cast-iron mains and services outside of a rate case. Business rider and the subsequent SAVE rider are still in place. In 2016, we completed the renewal of all our bare steel and cast-iron mains and services. This has dramatically reduced our greenhouse gas emissions while making our system much safer and more reliable. During the 2021 fiscal year, we continued our methane reduction efforts. Through our SAVE program, we renewed nearly 8 miles of main, over 600 services, and another of our city gate transfer stations, as Paul mentioned. It is worth noting that our solar facility recently reached its 1-year milestone of operation. Since it was put in place or in service, the company has produced over 106 megawatt hours of electricity, which has eliminated 63 tons of CO2 emissions. We also recently joined ONE Future. For those not familiar with ONE Future, it's a group of 50 natural gas companies that are working together to reduce methane emissions across the natural gas value chain. You can see our website for more information on these and other ESG initiatives.

Thank you, Tommy. I'm pleased to hear you reflect on our company's history. We have consistently committed to minimizing our environmental impact and supporting our communities, and we aim to maintain that commitment going forward. I'm proud of what we've accomplished in the past year and excited about the initiatives we have planned for the next 12 to 24 months. Now, let's review our earnings per share. The 2021 results were exceptional, particularly evident in the blue bars, which were significantly influenced by the Roanoke Gas Utility. As Tommy mentioned, the pandemic stimulus money had a considerable one-time impact, which we do not expect to see in 2022. Consequently, we have made a slight downward adjustment to the Roanoke Gas utility earnings compared to the previous year. However, even after excluding the one-time stimulus impact, we are still seeing growth in Roanoke Gas. Additionally, we have recorded our midstream investments at essentially breakeven in a conservative approach. We anticipate an excellent 2022, and the Board is pleased with that earnings outlook. That concludes our prepared remarks, and we're open to any questions.

Morning, everyone.

Hey, Mike. Good morning. How are you?

Doing fine. So, are yourselves?

We're doing wonderful. It feels like Florida in Roanoke today. It's already 60 degrees and want to be close to 70 degrees.

Well, that's not good for gas volumes though.

No, it's good for construction, but not good for throughput. That's right.

I have one question. I read an article in S&P Global that mentioned MVP Southgate is experiencing some permitting issues in the Carolinas. Could you provide some insights on that and share what the partners think about the situation?

Thank you for the question, Mike. Just to remind everyone on the call, Southgate is an extension from Station 165 off the MVP mainlines, crossing the Virginia and North Carolina border, and it essentially curves back to the greater Greensboro area. It's about a 70-mile project. The pipe sizes are smaller, at 24 inches and 16 inches, compared to the 42 inches of the mainline, but it's a significant project, especially considering that area of North Carolina is experiencing high growth in economic development. To simply answer your question, Mike, as the MVP mainline has faced delays, particularly in the past 24 months, Southgate has experienced similar delays. The project is still navigating through the permitting process for Southgate, and I don't believe there is any major concern at this time. Over the past five years, we've seen that pipeline projects can face challenges in overcoming permitting obstacles, but I do believe they will ultimately succeed.

Okay. Well, that's certainly good news. That's a needed project. That's all I had, gentlemen. Thank you.

Thank you, Mike. Does anyone else have a question?

Hi, Paul.

Hey, good morning.

Hey, it's Jack.

Hey Jack. How are you?

I'm okay. Two questions. One, what is the debt level incurred through MVP?

Yeah, that's a good question, Jack. Right now, if you look back at the slide where we show our MVP investment, we have funded that investment entirely with debt at this point in time. I think David has got us there back on Slide Number 10. At the end of 2021, our cash investment capital calls we've made to the project sit at just over $50 million. Presently, all of those capital calls have been made with debt.

Okay. Can you comment on, I guess, the regulatory challenges for the MVP overall?

I'd be happy to provide some insights on our current situation. Today is December 3rd, and our next important event is the Virginia State Water Control Board hearing on December 14th, where they will review the application for water crossing permits in Virginia. Tommy and I, along with a few others from our company, participated in the public hearings for these permits. Back in the fourth quarter of 2021, we expressed our views on the importance of the Mountain Valley project for the Roanoke region, particularly for Roanoke Gas Company. The customer growth and economic development we’re experiencing in the Greater Roanoke Valley are significant, and we are eager to support that, but we need the Mountain Valley project to continue facilitating this growth. We anticipate adding around 600 new customers in 2022, potentially more, building on the strong momentum from 2021. The necessity for the Mountain Valley project has become increasingly critical. However, as we have publicly indicated, the water crossing permits present a major hurdle at this time. We expect to have more information in the next 60 days as Virginia and West Virginia carry out their scheduled processes. The Army Corps will follow up after that in terms of additional approvals, and eventually, FERC must also grant the necessary approvals for the water crossing. I hope this addresses your question.

Okay. Thank you.

You're welcome. Any other questions at this time? Thank you so much for taking the time this morning to join the call. On behalf of everyone here at the company and our customers, I wish you a happy holiday season and a very merry Christmas. We look forward to reconnecting to review our first quarter results near the end of January or in early February. I hope everyone has a safe and pleasant weekend. Thank you.