For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is FuelCell Energy (FCEL) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.FuelCell Energy is a member of the Oils-Energy sector. This group includes 245 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank gau ...

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Financial Data and Key Metrics Changes - Net income for the third quarter was $538,000 or $0.05 per share, compared to $157,000 or $0.02 per share in the same quarter last year, reflecting a significant increase [10] - Year-to-date net income increased to $13,500,000 or $1.31 per share, up 16% from $1.15 per share in the same period last year [11] Business Line Data and Key Metrics Changes - Total delivered gas volumes increased by 6% in the quarter compared to the previous year, driven by one industrial customer with high natural gas consumption [6] - Year-to-date delivered gas volumes increased by 15% due to a colder winter, with heating degree days up 18% [7] Market Data and Key Metrics Changes - The company experienced robust residential growth, installing 3.9 new main miles, which is 50% higher than the total installed in all of fiscal 2024 [5] - The company connected 541 new services through June 30, indicating strong demand [5] Company Strategy and Development Direction - The company is focused on investing in system safety and reliability, with a high priority on the SAFE program [5] - Economic development efforts are ongoing, with significant investments in the region, including a major deal with Google [17][24] Management's Comments on Operating Environment and Future Outlook - Management anticipates a modest net loss in the fourth quarter due to weather-sensitive volumes, while monitoring inflation and interest rates [22] - The company expects customer growth and system expansion to remain strong, particularly in light of the Google investment and ongoing housing developments [30][32] Other Important Information - Total capital expenditures year-to-date were $15.7 million, down approximately 5% from the same period last year [9] - The company has successfully refinanced its midstream debt, classifying most of it as long-term, which positions it well for future cash flow enhancements [14][15] Q&A Session Summary Question: Expectations for MVP growth in 2026 and customer growth related to Google - Management expects MVP growth to be significantly higher in 2026, with plans pushed from 2025 into 2026 [29][30] Question: Customer penetration along existing mains and impact of higher electricity rates - Management noted that there is strong potential for customer growth along existing mains, driven by higher electricity rates leading to conversions from non-natural gas sources [36][38]

[PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited condensed consolidated financial statements detail the company's financial position and performance Condensed Consolidated Statements of Income Highlights | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $17,264,615 | $14,458,202 | $81,016,198 | $71,536,930 | | **Operating income** | $1,196,560 | $1,557,593 | $18,924,523 | $16,839,339 | | **Net income** | $538,412 | $156,692 | $13,484,309 | $11,620,074 | | **Diluted EPS** | $0.05 | $0.02 | $1.31 | $1.15 | Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | $324,757,993 | $320,699,223 | | **Total Liabilities** | $208,496,675 | $212,562,448 | | **Total Stockholders' Equity** | $116,261,318 | $108,136,775 | Condensed Consolidated Statements of Cash Flows Highlights (Nine Months Ended) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $28,273,016 | $17,056,186 | | **Net cash used in investing activities** | ($15,756,669) | ($16,544,262) | | **Net cash (used in) provided by financing activities** | ($11,283,643) | $516,738 | | **Net increase in cash and cash equivalents** | $1,232,704 | $1,028,662 | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies and significant developments including the MVP's operation and a rate case settlement - The company's two reportable segments are Gas Utility and Investment in Affiliates, with the Gas Utility segment generating **$18.98 million** in operating income and the Investment in Affiliates segment contributing **$2.43 million** in equity earnings for the nine months ended June 30, 2025[47](index=47&type=chunk)[49](index=49&type=chunk) - On April 10, 2025, the SCC approved a settlement agreement for Roanoke Gas, resulting in an annual incremental revenue increase of **$4.08 million** based on a return on equity of **9.90%**[53](index=53&type=chunk) - The Mountain Valley Pipeline (MVP) entered commercial operation on **June 14, 2024**, and the company received approximately **$2.7 million** in cash distributions from the MVP joint venture during the first nine months of fiscal 2025[56](index=56&type=chunk)[58](index=58&type=chunk) - The company secured a firm commitment to refinance **$53.6 million** of Midstream-related debt with a new seven-year loan at an interest rate of **SOFR plus 1.55%**[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=41&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes financial performance, focusing on regulatory impacts, weather, and the MVP investment [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Net income and gross utility margin increased due to rate changes, higher volumes, and MVP equity earnings Q3 2025 vs Q3 2024 Performance | Metric | Q3 2025 | Q3 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $381,720 | $156,692 | $381,720 | 243.6% | | **Gross Utility Margin** | $9,423,369 | $9,086,695 | $336,674 | 4% | | **Equity in Earnings** | $772,082 | $282,604 | $489,478 | 173.2% | Nine Months 2025 vs 2024 Performance | Metric | 9M 2025 | 9M 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $13,484,309 | $11,620,074 | $1,864,235 | 16.0% | | **Gross Utility Margin** | $44,357,647 | $40,714,474 | $3,643,173 | 9% | | **Total Delivered Volumes (DTH)** | 9,901,163 | 8,580,005 | 1,321,158 | 15% | - The nine-month gross utility margin increase was driven by a **$5.4 million** rise in non-gas volumetric revenues and **$855,000** from the SAVE Plan, offset by a **$2.7 million** decrease in WNA revenue[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) [Capital Resources and Liquidity](index=54&type=section&id=Capital%20Resources%20and%20Liquidity) Liquidity improved with increased operating cash flow, while capital expenditures and debt refinancing are planned - Net cash from operating activities increased to **$28.3 million** for the nine months ended June 30, 2025, up from **$17.1 million** in the prior year, aided by **$2.7 million** in cash distributions from the MVP affiliate[156](index=156&type=chunk)[158](index=158&type=chunk) - Capital expenditures for the nine months were **$15.7 million**, with total fiscal 2025 expenditures projected to be approximately **$22 million**[160](index=160&type=chunk) - The company has secured a commitment to refinance Midstream debt with a **new seven-year loan**, expected to be finalized in **Q4 fiscal 2025**[164](index=164&type=chunk) - As of June 30, 2025, the company's long-term capitalization ratio was **45% equity** and **55% debt**[166](index=166&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This item is not applicable for the current reporting period - The company has indicated that this item is **not applicable**[167](index=167&type=chunk) [Controls and Procedures](index=58&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Disclosure controls were deemed effective, and a new ERP system implementation altered internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of June 30, 2025[169](index=169&type=chunk) - On **April 1, 2025**, the company implemented a new ERP system, leading to enhancements and changes in its internal control over financial reporting[170](index=170&type=chunk) [PART II. OTHER INFORMATION](index=59&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=59&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reports no legal proceedings for the period - There are **no legal proceedings** to report[174](index=174&type=chunk) [Risk Factors](index=59&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors from the prior annual report are noted - **No material changes** have been made to the risk factors disclosed in the 2024 Annual Report on Form 10-K[175](index=175&type=chunk) [Exhibits](index=60&type=section&id=ITEM%206.%20EXHIBITS) Filed exhibits include a new asset management agreement and officer certifications - Key exhibits filed include a **Natural Gas Asset Management Agreement** with DTE Energy Trading, Inc, and certifications by the Principal Executive and Financial Officers[181](index=181&type=chunk)

Core Insights - RGC Resources Inc. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, marking a 150.00% earnings surprise compared to $0.02 per share a year ago [1] - The company achieved revenues of $17.27 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 15.10% and showing an increase from $14.46 million year-over-year [2] - RGC Resources has consistently surpassed consensus EPS estimates over the last four quarters [2] Earnings Performance - The company had an earnings surprise of +8.82% in the previous quarter, with actual earnings of $0.74 per share against an expected $0.68 [1] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $14 million, while the estimate for the current fiscal year is $1.25 on revenues of $92 million [7] Stock Performance - RGC Resources shares have increased approximately 6.1% since the beginning of the year, compared to an 8.6% gain in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Oil and Gas - Refining and Marketing industry ranks in the top 41% of over 250 Zacks industries, suggesting a favorable outlook [8] - Historical data indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

[Earnings Highlights](index=1&type=section&id=Earnings%20Highlights) RGC Resources reported a significant increase in earnings for the third quarter and first nine months of fiscal 2025, primarily driven by higher earnings from its investment in the Mountain Valley Pipeline Q3 Earnings Comparison (Ended June 30) | Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Consolidated Earnings ($)** | $0.54 million | $0.16 million | +243.6% | | **Earnings Per Share (EPS)** | $0.05 | $0.02 | +150.0% | Nine-Month Earnings Comparison (Ended June 30) | Metric | Nine Months 2025 | Nine Months 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Income ($)** | $13.48 million | $11.62 million | +16.0% | | **Earnings Per Share (EPS)** | $1.31 | $1.15 | +13.9% | - The primary driver for the earnings increase in both the third quarter and the first nine months of fiscal 2025 was higher earnings from the company's investment in the Mountain Valley Pipeline, LLC (MVP)[2](index=2&type=chunk)[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Paul Nester highlighted the Mountain Valley Pipeline's significant contribution to value and energy delivery, alongside Roanoke Gas's strong financial and operational performance - CEO Paul Nester stated that the Mountain Valley Pipeline (MVP) has been a successful and meaningful part of delivering value for a full year, and that Roanoke Gas continues to produce strong financial results from prudent system investment and exemplary operations[3](index=3&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the unaudited Condensed Consolidated Statements of Income and Condensed Consolidated Balance Sheets for the periods ended June 30, 2025, and June 30, 2024 [Condensed Consolidated Statements of Income](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q3 2025, operating revenues increased, but operating income declined due to higher expenses, while significant equity earnings from MVP boosted net income Condensed Consolidated Statements of Income (Unaudited) | | Three Months Ended June 30, | Nine Months Ended June 30, | | :--- | :--- | :--- | | | **2025 ($)** | **2024 ($)** | **2025 ($)** | **2024 ($)** | | **Operating revenues** | $17.26 million | $14.46 million | $81.02 million | $71.54 million | | **Operating expenses** | $16.07 million | $12.90 million | $62.09 million | $54.70 million | | **Operating income** | $1.20 million | $1.56 million | $18.92 million | $16.84 million | | **Equity in earnings of unconsolidated affiliate** | $0.77 million | $0.28 million | $2.43 million | $2.98 million | | **Other income (expense), net** | $0.24 million | $(0.07 million) | $1.18 million | $0.14 million | | **Interest expense** | $1.51 million | $1.57 million | $4.92 million | $4.77 million | | **Income before income taxes** | $0.70 million | $0.20 million | $17.61 million | $15.19 million | | **Income tax expense** | $0.16 million | $0.05 million | $4.13 million | $3.57 million | | **Net income** | **$0.54 million** | **$0.16 million** | **$13.48 million** | **$11.62 million** | | **Basic EPS** | $0.05 | $0.02 | $1.31 | $1.15 | | **Diluted EPS** | $0.05 | $0.02 | $1.31 | $1.15 | - Cash dividends per common share increased year-over-year for both the third quarter (from **$0.2000 to $0.2075**) and the nine-month period (from **$0.6000 to $0.6225**)[9](index=9&type=chunk) [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $324.8 million, driven by net utility property growth, supported by increases in long-term debt and stockholders' equity Condensed Consolidated Balance Sheets (Unaudited) | | June 30, 2025 ($) | June 30, 2024 ($) | | :--- | :--- | :--- | | **Assets** | | | | Current assets | $21.60 million | $25.41 million | | Utility property, net | $270.54 million | $257.94 million | | Other non-current assets | $32.62 million | $30.81 million | | **Total Assets** | **$324.76 million** | **$314.15 million** | | **Liabilities and Stockholders' Equity** | | | | Current liabilities | $20.70 million | $23.78 million | | Long-term debt, net | $139.74 million | $136.31 million | | Deferred credits and other non-current liabilities | $48.06 million | $45.29 million | | **Total Liabilities** | **$208.50 million** | **$205.39 million** | | **Stockholders' Equity** | **$116.26 million** | **$108.77 million** | | **Total Liabilities and Stockholders' Equity** | **$324.76 million** | **$314.15 million** | - Year-over-year, Total Assets grew by **3.4%**, Total Liabilities increased by **1.5%**, and Stockholders' Equity rose by **6.9%**[11](index=11&type=chunk)

Core Viewpoint - RGC Resources, Inc. reported significant growth in earnings for the third quarter of fiscal 2025, primarily driven by higher earnings from its investment in the Mountain Valley Pipeline, LLC (MVP) [1][2]. Financial Performance - For the third quarter ended June 30, 2025, the company achieved consolidated earnings of $538,412, or $0.05 per share, compared to $156,692, or $0.02 per share, for the same quarter in the previous year, marking a substantial increase [1]. - The net income for the first nine months of fiscal 2025 was $13,484,309, or $1.31 per share, reflecting a 16% increase from $11,620,074, or $1.15 per share, in the prior year [2]. - Operating revenues for the third quarter of 2025 were $17,264,615, up from $14,458,202 in the same quarter of 2024 [6]. - Operating expenses increased to $16,068,055 in the third quarter of 2025 from $12,900,609 in the previous year [6]. - The company reported operating income of $1,196,560 for the third quarter of 2025, compared to $1,557,593 in the same quarter of 2024 [6]. Investment and Operations - The CEO emphasized the company's commitment to creating value for shareholders and the community through safe and reliable energy provision, highlighting the success of MVP in delivering value [2]. - RGC Resources operates through its subsidiaries, Roanoke Gas Company and RGC Midstream, LLC, providing energy and related services in Virginia [3]. Balance Sheet Overview - As of June 30, 2025, total assets amounted to $324,757,993, an increase from $314,154,160 in 2024 [9]. - Current assets decreased to $21,595,712 from $25,408,031 year-over-year [9]. - Stockholders' equity rose to $116,261,318 from $108,767,792 in the previous year [9].

Group 1 - RGC Resources, Inc. will host its quarterly conference call and webcast to review the results of its fiscal third quarter 2025 on August 13, 2025, at 9:00 a.m. eastern time [1] - Related presentation materials will be available on the Company's website prior to the call [1] - Interested parties can access the conference call by dialing toll-free 1-877-304-9269 and entering conference identification number 917621 [2] Group 2 - An archive of the webcast will be available for one year on the Company's investor information page [2] - RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC [2]

Core Insights - The primary purpose of a business is to generate profits for reinvestment or shareholder rewards, with net profit margin being a key metric for measuring profitability [1][3] - A higher net profit margin indicates a company's efficiency in converting sales into actual profits and reflects operational management [2][4] Net Profit Margin Analysis - Net profit margin is calculated as Net Profit/Sales * 100, representing the amount retained after all expenses [3] - Companies like Natural Gas Services Group, Ardmore Shipping, Adtalem Global Education, and RGC Resources exhibit strong net profit margins, indicating solid profitability [2][9] Investment Criteria - A healthy net profit margin and solid earnings per share (EPS) growth are essential for a robust business model [7] - Screening parameters include a net margin of at least 0%, positive EPS growth, and a broker rating of 1, indicating strong bullish sentiment [8] Company Performance - Natural Gas Services (NGS) has a Zacks Rank of 1 and a VGM Score of A, with a revised earnings estimate of $1.40 per share for 2025, reflecting an 18.6% upward revision [12][11] - Ardmore Shipping (ASC) also holds a Zacks Rank of 1, with a revised earnings estimate of $1.36 per share, showing a 5.2% average surprise in earnings [13][14] - Adtalem Global Education (ATGE) has a Zacks Rank of 2 and a revised earnings estimate of $6.52 per share, with an 18.4% average surprise [15] - RGC Resources has a Zacks Rank of 2, with a revised earnings estimate of $1.25 per share and a 34.9% average surprise [16]

Company Performance - EQT Corporation is currently ranked 16 in the Zacks Sector Rank among 241 companies in the Oils-Energy group [2] - EQT has gained approximately 26.5% year-to-date, significantly outperforming the average gain of 0.4% for Oils-Energy stocks [4] - The Zacks Consensus Estimate for EQT's full-year earnings has increased by 3% over the past quarter, indicating improved analyst sentiment [3] Industry Context - EQT belongs to the Oil and Gas - Exploration and Production - United States industry, which has an average loss of 18.8% this year, highlighting EQT's strong performance relative to its peers [6] - Another stock in the Oils-Energy sector, RGC Resources Inc. (RGCO), has also shown strong performance with a year-to-date return of 11.6% [4] - RGC Resources Inc. is part of the Oil and Gas - Refining and Marketing industry, which has gained 10.4% since the beginning of the year [7]