RGC Resources (RGCO) investor relations material

Executive summary

• Net income for the nine months ended June 30, 2026, rose to $14.2 million ($1.37 per diluted share), up from $13.5 million ($1.31 per diluted share) year-over-year, driven by higher non-gas base rates, lower interest expense, and lower income taxes, despite inflationary pressures and the loss of a major industrial customer.

• Operating revenues for the nine months increased 15% to $92.8 million, primarily due to higher natural gas commodity prices, new non-gas base rates, and increased SAVE revenues.

• Interim rates effective January 1, 2026, and new stay revenues drove margin increases, offsetting declines in residential and commercial volumes.

• Industrial gas usage and interruptible volumes increased, though one top 10 customer ceased operations in March.

• The company serves approximately 63,800 customers in Virginia under regulatory oversight, with nearly all revenues from regulated natural gas sales.

Financial highlights

• Nine-month net income was $14.2 million, up from $13.5 million year-over-year, and diluted EPS was $1.37, up from $1.31.

• Nine-month operating revenues were $92.8 million, up from $81.0 million year-over-year.

• Gross utility margin increased 5% to $46.7 million for the nine months.

• CapEx for the first nine months was $16.1 million, up 2% year-over-year.

• Cash dividends per share increased to $0.6525 for the nine months.

Outlook and guidance

• Full-year 2026 EPS guidance narrowed to $1.29–$1.32, with a small loss projected in the fourth quarter.

• Final resolution of the rate case with the SCC is expected in Q1 fiscal 2027, with a $3.85 million annual revenue increase agreed upon and new rates effective August 1, 2026.

• Capital forecast for 2026 remains at $22 million, with some projects pulled forward.

• Updated SAVE and RNG Riders filed, with SCC decisions expected in September 2026.

• Peak shaving capability via on-system LNG storage targeted for the 2027–2028 winter season.