Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
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Release Date: |
May 6, 2026 |
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Contact: |
Timothy J. Mulvaney |
| Vice President, Treasurer and CFO | |
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Telephone: |
(540) 777-3997 |
RGC RESOURCES, INC. REPORTS
SECOND QUARTER EARNINGS
ROANOKE, Va. (May 6, 2026)--RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $8.7 million, or $0.84 per diluted share, for the second quarter ended March 31, 2026, compared to $7.7 million, or $0.74 per diluted share, for the second quarter ended March 31, 2025. The increase was the result of higher operating margins which included the positive effect of the Company’s interim base rates under the pending rate case partially offset by increased operating expenses and depreciation. Additionally, higher earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”) and lower interest expense contributed to the performance.
CEO Paul Nester stated, “We had a strong quarter in which our system performed superbly, particularly during the prolonged cold from Winter Storm Fern. The MVP pipeline delivered as promised across the eastern half of the country including to the benefit of our customers in the Roanoke Valley. Interim rates that became effective at the beginning of January were timely as challenges from inflationary pressures will continue to affect the remainder of the year.”
As noted above and announced last quarter, the Company has an expedited rate case which is currently being reviewed by the State Corporation Commission. Rates went into effect January 1, 2026 and are subject to refund.
Through the first six months of fiscal 2026, the Company’s net income of $13.6 million, or $1.31 per diluted share, was up 5.3% from $12.9 million, or $1.26 per diluted share, in the first six months of the prior year due to stronger operating margins in the second quarter and lower interest expense over the first half of the fiscal year.
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.
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, customer growth, ratemaking, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, geopolitical considerations, expectations regarding the MVP and the Company’s rate application along with risks included under Item 1-A in the Company’s fiscal 2025 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)
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Three Months Ended March 31, |
Six Months Ended March 31, |
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2026 |
2025 |
2026 |
2025 |
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Operating revenues |
$ | 45,457,009 | $ | 36,462,097 | $ | 75,717,477 | $ | 63,751,583 | ||||||||
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Operating expenses |
34,173,059 | 26,062,155 | 57,883,190 | 46,023,620 | ||||||||||||
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Operating income |
11,283,950 | 10,399,942 | 17,834,287 | 17,727,963 | ||||||||||||
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Equity in earnings of unconsolidated affiliates |
903,991 | 801,175 | 1,731,061 | 1,655,388 | ||||||||||||
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Other income, net |
692,421 | 463,633 | 1,197,410 | 936,969 | ||||||||||||
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Interest expense |
1,585,838 | 1,630,275 | 3,256,988 | 3,410,205 | ||||||||||||
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Income before income taxes |
11,294,524 | 10,034,475 | 17,505,770 | 16,910,115 | ||||||||||||
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Income tax expense |
2,550,034 | 2,358,267 | 3,878,415 | 3,964,218 | ||||||||||||
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Net income |
$ | 8,744,490 | $ | 7,676,208 | $ | 13,627,355 | $ | 12,945,897 | ||||||||
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Net earnings per share of common stock: |
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Basic |
$ | 0.85 | $ | 0.74 | $ | 1.34 | $ | 1.26 | ||||||||
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Diluted |
$ | 0.84 | $ | 0.74 | $ | 1.31 | $ | 1.26 | ||||||||
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Cash dividends per common share |
$ | 0.2175 | $ | 0.2075 | $ | 0.4350 | $ | 0.4150 | ||||||||
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Weighted average number of common shares outstanding: |
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Basic |
10,232,835 | 10,304,222 | 10,177,581 | 10,281,725 | ||||||||||||
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Diluted |
10,404,657 | 10,308,368 | 10,378,996 | 10,285,939 | ||||||||||||
Condensed Consolidated Balance Sheets
(Unaudited)
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March 31, |
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Assets |
2026 |
2025 |
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Current assets |
$ | 25,712,684 | $ | 25,777,943 | ||||
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Utility property, net |
278,879,716 | 267,560,507 | ||||||
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Other non-current assets |
32,512,418 | 33,082,837 | ||||||
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Total Assets |
$ | 337,104,818 | $ | 326,421,287 | ||||
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Liabilities and Stockholders’ Equity |
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Current liabilities |
$ | 37,334,730 | $ | 45,489,019 | ||||
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Long-term debt, net |
128,925,540 | 115,226,622 | ||||||
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Deferred credits and other non-current liabilities |
46,760,043 | 47,872,423 | ||||||
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Total Liabilities |
213,020,313 | 208,588,064 | ||||||
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Stockholders’ Equity |
124,084,505 | 117,833,223 | ||||||
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Total Liabilities and Stockholders’ Equity |
$ | 337,104,818 | $ | 326,421,287 | ||||