RGC RESOURCES INC

RGC Resources, Inc. (Nasdaq: RGCO) is an energy services company primarily engaged in the regulated sale and distribution of natural gas through its subsidiary Roanoke Gas Company, which was originally established in 1883. The company website is www.rgcresources.com.

Roanoke Gas operates as a natural gas utility serving approximately 62,500 residential, commercial, and industrial customers in Roanoke, Virginia, and surrounding localities. The company maintains an integrated distribution system comprising approximately 1,184 miles of transmission and distribution pipeline. Residential customers represent over 91 percent of the customer base but account for less than 35 percent of total gas volumes delivered, while generating more than half of consolidated revenues and margin. Commercial customers comprise 8.6 percent of the customer base and contribute approximately 26 percent of margin, while industrial customers, primarily transportation customers, represent less than 1 percent of customers but account for over 35 percent of total natural gas volume deliveries.

The company's operations are concentrated in the Roanoke Valley and surrounding areas. Natural gas purchases represent the single largest operating expense, constituting 55 percent of fiscal 2025 total operating expenses. Roanoke Gas relies on multiple interstate pipelines operated by Columbia Gas Transmission, East Tennessee Natural Gas, Tennessee Gas Pipeline, and Mountain Valley Pipeline to transport natural gas to its distribution system. The company also owns and operates a liquefied natural gas storage facility capable of storing up to 200,000 decatherms and began operating a renewable natural gas facility in March 2023.

RGC Resources' regulated utility operations are subject to oversight by the Virginia State Corporation Commission, which approves rates and charges for natural gas service. The company operates under various rate mechanisms including the Purchased Gas Adjustment, Weather Normalization Adjustment, Inventory Carrying Cost revenue structure, Steps to Advance Virginia's Energy Rider, and Renewable Natural Gas Rider to manage cost recovery and earnings volatility.

The company also operates Midstream, a wholly-owned subsidiary that maintains a less than 1 percent investment in Mountain Valley Pipeline, LLC, a FERC-regulated interstate natural gas pipeline. As of September 30, 2025, Resources employed 106 full-time employees.