ROANOKE, Va., May 06, 2025 (GLOBE NEWSWIRE) -- 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 Six Months Ended
March 31, 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


Contact: Timothy J. Mulvaney
Vice President, Treasurer and CFO
Telephone: (540) 777-3997