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Here are 1-3 brief analogies for RGC Resources:

• Like your local **water utility**, but for natural gas.
• A regional version of a utility like **Con Edison**, but solely focused on natural gas distribution.

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• Natural Gas Distribution: The company sells and delivers natural gas to residential, commercial, and industrial customers.
• Unregulated Services: RGC Resources provides various services that fall outside its regulated natural gas distribution operations.

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RGC Resources (RGCO) primarily serves customers within its operating region in Roanoke, Virginia, and surrounding localities. As a natural gas distribution utility, it sells its services to broad categories of end-users rather than to a few specific major companies. Its customer base can be categorized as follows:

• Residential Customers: These include individual households and homeowners who utilize natural gas for heating, cooking, water heating, and other domestic energy needs.
• Commercial Customers: This category encompasses a diverse group of businesses and organizations, such as offices, retail establishments, restaurants, hotels, hospitals, and schools, which use natural gas for space heating, water heating, cooking, and various operational processes.
• Industrial Customers: This segment comprises manufacturing facilities, factories, and other large industrial operations that rely on natural gas as a fuel for production processes, heating, and power generation.

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• Transcontinental Gas Pipe Line Company, LLC (subsidiary of The Williams Companies, Inc. (WMB))

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Paul W. Nester President & CEO

Paul W. Nester was appointed President & CEO of RGC Resources in February 2020. Prior to this role, he served as Chief Financial Officer at UXB International Inc., Manager at EXELIS INC., and held the position of VP/CFO/Treasurer at RGC Resources Inc.

Timothy J. Mulvaney Vice President, Chief Financial Officer and Treasurer

Timothy J. Mulvaney was appointed Vice President, Treasurer and Chief Financial Officer of RGC Resources, effective February 1, 2024, after serving as interim Chief Financial Officer and Treasurer since September 6, 2023. Before joining RGC Resources, he was the Senior Vice President, Chief Accounting Officer for LL Flooring Holdings, Inc. for over five years, overseeing accounting records, external financial reporting, and treasury functions. He also served as Interim Chief Financial Officer for LL Flooring in 2019. Earlier in his career, Mulvaney spent more than 20 years at Media General, Inc., a multimedia company, as Chief Accounting Officer and Controller, and began his career in public accounting with Ernst and Young.

Lawrence T. Oliver Senior Vice President, Regulatory and External Affairs and Secretary

Lawrence T. Oliver serves as Senior Vice President, Regulatory and External Affairs and Corporate Secretary for RGC Resources and its subsidiary, Roanoke Gas.

C. Brooke Miles Vice President, Human Resources and Community Engagement

C. Brooke Miles holds the position of Vice President, Human Resources and Community Engagement for RGC Resources and Roanoke Gas.

Thomas P. Furcron Vice President, Operations, Roanoke Gas Company

Thomas P. Furcron is the Vice President of Operations for Roanoke Gas Company, a subsidiary of RGC Resources.

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Here are the key risks to RGC Resources' business:

1. Regulatory and Legislative Risks: As a regulated natural gas utility, RGC Resources is highly dependent on federal, state, and local regulatory oversight, including the ability to obtain timely rate increases and recover costs. Changes in energy policies, environmental regulations, or other laws (such as those related to ESG matters) could increase operational costs, impose additional burdens, or impact the company's core operations.
2. Commodity Price Volatility and Market Competition: The company is exposed to volatility in natural gas prices. While mechanisms like the Purchased Gas Adjustment (PGA) allow RGC Resources to pass through natural gas costs to customers, rapid or significant price increases could lead to customer conservation or switching to alternative energy sources such as electricity or propane, thereby impacting the company's revenues and market share.
3. Operational and Infrastructure Risks: Operating a natural gas distribution system inherently carries risks, including equipment failures, natural disasters, and cybersecurity threats, which could result in service disruptions, significant financial losses, or reputational damage. Furthermore, the company's financial performance can be impacted by volatile energy costs and weather-related disruptions that affect customer demand and necessitate ongoing infrastructure investments.

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The addressable market for RGC Resources' main product, natural gas distribution, is defined by the number of customers it serves and the revenue generated from these services in its operating region.

RGC Resources, through its subsidiary Roanoke Gas Company, distributes natural gas to approximately 64,000 residential, commercial, and industrial customers in the Roanoke Valley and surrounding localities in Virginia. The company's annual revenue (trailing twelve months) from these operations is approximately $98.3 million USD. This revenue is generated from the sale and distribution of natural gas to its customer base in this specific geographic area.

The region for this market size is the Roanoke Valley and its surrounding localities in Virginia.

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RGC Resources (RGCO) anticipates several key drivers to fuel its future revenue growth over the next two to three years:

1. Rate Case Outcomes: The company has initiated an expedited rate case, seeking an approximate $4.3 million increase in annual revenues. Interim rates became effective on January 1, 2026, with full adjudication expected by the end of the calendar year, which is set to directly boost revenue. Additionally, a prior 2024 rate case successfully led to an annual revenue increase of over $4 million.
2. Customer Growth and System Expansion: RGC Resources is focused on enhancing customer growth and system reliability through ongoing investments in its utility infrastructure. The company has already observed an 8% rise in residential gas usage in the first quarter of fiscal year 2026. This strategy includes efforts toward customer acquisition and expanding its operational footprint.
3. Increased Natural Gas Volumes and Demand: Revenue growth is expected from higher volumes of natural gas delivered to customers. The company experienced an 11% year-over-year increase in operating revenues in Q1 2026, partly driven by increased volumes and stronger customer activity. Furthermore, total gas volumes were up significantly in the first half of fiscal 2025 due to an industrial customer's higher consumption and increased heating degree days. Record levels of gas deliveries also contributed to strong annual earnings in fiscal 2025.

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Share Issuance

• RGC Resources issued 88,409 shares of common stock, primarily through its Dividend Reinvestment Plan (DRIP) activity, generating approximately $1.8 million in net proceeds during fiscal 2025.
• In fiscal 2024, the company realized $4.7 million from the issuance of 234,645 shares through its at-the-market (ATM) program and DRIP activity.
• A senior executive acquired additional common stock in March 2026 through the company's Dividend Reinvestment and Stock Purchase Plan.

Outbound Investments

• RGC Resources, through its subsidiary RGC Midstream, LLC, has made a strategic investment in the Mountain Valley Pipeline (MVP) project.
• In fiscal year 2022, the company recorded after-tax impairment charges of approximately $40.9 million related to its investment in the Mountain Valley Pipeline, LLC.
• RGC Midstream refinanced its outstanding debt with a new $53.6 million term note, maturing in 2032, and secured new loan agreements for the MVP Southgate and Boost projects.

Capital Expenditures

• Capital expenditures are projected to be approximately $22 million annually over the next few years (from a December 2025 report), primarily focused on infrastructure improvements, customer growth, and the System Acquisition and Upgrade Virginia Program for the Environment (SAVE Plan).
• For the full fiscal year 2025, the capital spending projection was $21.8 million.
• Total capital expenditures for the first half of fiscal 2025 were $10.7 million, representing a decrease of approximately 5% compared to the same period in the prior year.