RGC Resources (RGCO) Q3 2025 Earnings Call August 13, 2025 09:00 AM ET Speaker0Good morning, and thank you for joining us as we discuss RGC Resources twenty twenty five third quarter results. I'm Kelsey Davenport, director of finance of RGC Resources Inc.I am joined today this morning by Paul Nestor, our president and CEO, and Tim Mulvaney, our VP, treasurer, and chief financial officer. Let's review a few administrative items before we start. We have muted all lines and ask that all participants remain mut ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Transition Period From to Commission File Number 000-26591 RGC Resources, Inc. (Exact name of Registrant as Specified in its Charter) Virginia 54-1909697 (State or Other Ju ...

[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)

ROANOKE, Va., Aug. 11, 2025 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated earnings of $538,412, or $0.05 per share, for the third quarter ended June 30, 2025, compared to $156,692, or $0.02 per share, for the fiscal quarter ended June 30, 2024. The increase during the quarter was largely the result of higher earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”). CEO Paul Nester stated, “We continue to honor our mission of creating value for share ...

ROANOKE, Va., July 31, 2025 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) will host its quarterly conference call and webcast to review the results of its fiscal third quarter 2025 on Wednesday, August 13, 2025 at 9:00 a.m. eastern time. Related presentation materials will be available before the call on the Company website on the Investor & Financial Information page at https://www.rgcresources.com/investor-financial-information/. Interested parties may access the conference call by dialing toll-f ...

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]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting that price movements should be supported by strong fundamentals and positive earnings estimates [1][2]. Group 1: Stock Performance - RGC Resources Inc. (RGCO) has shown a solid price increase of 9.1% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also experienced a price increase of 13.3% over the past four weeks, suggesting that the upward trend is still intact [5]. - Currently, RGCO is trading at 82.1% of its 52-week high-low range, indicating it may be on the verge of a breakout [5]. Group 2: Fundamental Strength - RGCO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like RGCO that are on an uptrend supported by strong fundamentals [3]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find stocks that align with their investment strategies [8].

Company Overview - RGC Resources Inc. (RGCO) shares increased by 9.1% to close at $22.18, following a notable trading volume that exceeded typical levels [1] - The company is expected to report quarterly earnings of $0.02 per share, unchanged from the previous year, with revenues projected at $15 million, reflecting a 3.7% increase year-over-year [3] Market Dynamics - The surge in RGCO's share price was driven by a significant rise in natural gas demand and prices due to an ongoing heatwave in the eastern U.S., which increased power generation needs [2] - Despite a slight increase in natural gas output in the Lower 48 states in June, supply remained tight compared to record levels in March, compounded by seasonal maintenance at major LNG export facilities [2] - Geopolitical instability in the Middle East has raised concerns about potential disruptions to global LNG trade, particularly through the Strait of Hormuz, which is crucial for about one-fifth of the world's LNG shipments [2] Earnings Estimates and Stock Performance - The consensus EPS estimate for RGC Resources has remained unchanged over the last 30 days, indicating stability in earnings expectations [4] - The stock's price typically does not continue to rise without trends in earnings estimate revisions, suggesting that monitoring future earnings revisions will be important for assessing continued strength [4] - RGC Resources holds a Zacks Rank of 2 (Buy), indicating positive sentiment in the market [5]

Group 1: Stock Performance and Technical Analysis - RGC Resources Inc. (RGCO) shares have declined by 5% over the past four weeks, but a hammer chart pattern formed in the last trading session suggests potential support and a possible trend reversal [1] - The hammer pattern indicates a nearing bottom with likely subsiding selling pressure, which supports a bullish case for the stock [2] - The hammer chart pattern is characterized by a small candle body and a long lower wick, indicating that buying interest has emerged after a new low during a downtrend [4][5] Group 2: Fundamental Analysis and Earnings Estimates - There has been an upward trend in earnings estimate revisions for RGCO, which is considered a bullish indicator [7] - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.6%, indicating that analysts expect better earnings than previously predicted [8] - RGCO currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9]