EX-99.1 2 ex_779327.htm EXHIBIT 99.1 ex_779327.htm

Exhibit 99.1

NEWS RELEASE

 

 

RGC RESOURCES, INC.

 

Release Date:

May 6, 2025

Contact:

Timothy J. Mulvaney
  Vice President, Treasurer and CFO

Telephone:

(540) 777-3997

 

 

RGC RESOURCES, INC. REPORTS

SECOND QUARTER EARNINGS

 

 

ROANOKE, Va.  (May 6, 2025)--RGC Resources, Inc. (Nasdaq:  RGCO) announced consolidated Company earnings of $7,676,208, or $0.74 per share, for the second quarter ended March 31, 2025, compared to $6,443,390, or $0.63 per share, for the second quarter ended March 31, 2024.  The primary drivers of the increased earnings were higher base rates that went into effect July 1, 2024 and increased volumes, offset by lower earnings from unconsolidated affiliate and higher interest expense.

 

Cooler winter weather and higher base rates drove higher margins and earnings. CEO Paul Nester stated, “We had a strong second quarter as utility margin increased 12%, enhanced by a colder January and by a large industrial customer who continued strong utilization compared to the same period a year ago.  The Company’s earnings from its investment in the MVP, with the pipeline in operation, were $801,175 in the second quarter ended March 31, 2025, down from $1,229,384 in the second quarter ended March 31, 2024.  The larger 2024 amount corresponded to the Company’s share of Allowance for Funds Used During Construction (AFUDC) during the construction phase.”

 

Through the first six months of fiscal 2025, the Company’s net income of $12,945,897, or $1.26 per share, was up 12.9% from $11,463,382, or $1.14 per share, with similar reasons as the quarter – higher utility margin offset by lower earnings from the Company’s investment in MVP and higher interest expense.  In early April, the State Corporation Commission issued a final order and made permanent the negotiated rates from the Company’s 2024 rate case filing.

 

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.

 

Utility margin is a non-GAAP measure defined as utility revenues less cost of gas.  Management considers this non-GAAP measure to provide useful information to both management and investors for purpose of such comparability and in evaluating operating performance, but it should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for, or superior to, GAAP results.

 

The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company’s actual results and experience to differ materially from any expectations expressed in the Company’s forward-looking statements, regarding inflation, interest rates, customer growth, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, domestic and geopolitical considerations, along with risks included under Item 1-A in the Company’s fiscal 2024 Form 10-K.  Forward-looking statements reflect the Company’s current expectations only as of the date they are made. The Company assumes no duty to update these statements should expectations change or actual results differ from current expectations except as required by applicable laws and regulations.

 

Past performance is not necessarily a predictor of future results.

 

Summary financial statements for the second quarter and fiscal year to date are as follows:

 

 

 

RGC Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

 

   

Three Months Ended March 31,

   

Six Months Ended March 31,

 
   

2025

   

2024

   

2025

   

2024

 
                                 

Operating revenues

  $ 36,462,097     $ 32,659,376     $ 63,751,583     $ 57,078,728  

Operating expenses

    26,062,155       24,029,667       46,023,620       41,796,982  

Operating income

    10,399,942       8,629,709       17,727,963       15,281,746  

Equity in earnings of unconsolidated affiliate

    801,175       1,229,384       1,655,388       2,697,219  

Other income, net

    463,633       89,487       936,969       210,273  

Interest expense

    1,630,275       1,566,613       3,410,205       3,202,886  

Income before income taxes

    10,034,475       8,381,967       16,910,115       14,986,352  

Income tax expense

    2,358,267       1,938,577       3,964,218       3,522,970  
                                 

Net income

  $ 7,676,208     $ 6,443,390     $ 12,945,897     $ 11,463,382  
                                 

Net earnings per share of common stock:

                               

Basic

  $ 0.74     $ 0.63     $ 1.26     $ 1.14  

Diluted

  $ 0.74     $ 0.63     $ 1.26     $ 1.13  
                                 

Cash dividends per common share

  $ 0.2075     $ 0.2000     $ 0.4150     $ 0.4000  
                                 

Weighted average number of common shares outstanding:

                               

Basic

    10,304,222       10,170,595       10,281,725       10,099,533  

Diluted

    10,308,368       10,174,006       10,285,939       10,102,284  

 


Condensed Consolidated Balance Sheets

(Unaudited)

 

   

March 31,

 

Assets

 

2025

   

2024

 

Current assets

  $ 25,777,943     $ 28,525,645  

Utility property, net

    267,560,507       254,140,117  

Other non-current assets

    33,082,837       30,693,768  
                 

Total Assets

  $ 326,421,287     $ 313,359,530  
                 

Liabilities and Stockholders’ Equity

               

Current liabilities

  $ 45,489,019     $ 21,702,382  

Long-term debt, net

    115,226,622       135,916,887  

Deferred credits and other non-current liabilities

    47,872,423       45,196,399  

Total Liabilities

    208,588,064       202,815,668  

Stockholders’ Equity

    117,833,223       110,543,862  
                 

Total Liabilities and Stockholders’ Equity

  $ 326,421,287     $ 313,359,530