RGC Midstream, LLC (“Midstream”), a subsidiary of RGC Resources, Inc. ((&ldquo, Resources&rdquo, , the &ldquo, Company&rdquo, , NASDAQ:RGCO), issued the following statement concerning its investment in the Mountain Valley Pipeline (“MVP”), LLC:
Due primarily to recent decisions by the U.S. Court of Appeals for the Fourth Circuit (the “Court”) vacating and remanding certain permits necessary for the completion of MVP construction and commercial operation, and the greater uncertainty that now exists given the Court’s actions, as well as the recent actions by project partners to impair their respective investments and the discontinuance of the previously-publicized summer 2022 in-service target for the MVP project, Midstream is evaluating the degree to which a material impairment to its investment exists. It is likely that Midstream will recognize a material impairment charge in the fiscal second quarter. A public disclosure concerning the nature and amount of the impairment charge will be made in accordance with SEC rules.
Regardless of impairment to Midstream’s investment in the MVP joint venture, Resources remains committed to completing the MVP project and is supportive of engagement with federal agencies, legal counsel and the other joint venture partners to evaluate the best path forward.
Resources’ 2022 earnings guidance assumed a summer of 2022 MVP in-service. Projected earnings from Midstream’s equity investment were incorporated in Resources’ 2022 guidance. Due to the impairment evaluation and the discontinuance of the summer 2022 in-service target for the MVP project, Resources is withdrawing its fiscal 2022 earnings guidance.
