olivLaw · US equity research
RGC Resources, Inc. RGCO
Natural Gas Transmisison & Distribution · SIC 4923 · Vertical: Natural Gas Transmisison & Distribution (SIC 4923)
RGC Resources is an energy services company that distributes natural gas through its Roanoke Gas subsidiary in Roanoke, Virginia, serving about 63,800 customers. It matters now because of a regulated rate settlement, a new non-gas rate increase and infrastructure investment that could support margins if results keep improving.
At the close of 04 Nov 2026, RGC Resources, Inc. (RGCO) stock was 23.83 USD (+5.63% on the day), with market capitalisation 248.3 m USD, P/E 17.8 on diluted EPS of 1.34 USD over the last 12 months, dividend yield 3.61%, beta 0.41, 52-week range 20.62–26.54 USD. Latest reported quarter (Q3 2026): revenue of 17.1 m USD (−0.9% YoY), net income of 558.9 k USD (+3.8% YoY), diluted EPS 0.05 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 65.0
- strong (55–70)
- Bollinger (20, 2)
- 22.07 – 23.43
- above the upper band · %B 1.29 · band width 6.0%
- SMA 50 / 200
- 22.00 / 22.41
- mixed trend
- MACD (12, 26, 9)
- 0.32 / 0.27
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +10.1% | −1.1% | +11.2 pp | — |
| 3 months | +9.8% | −0.5% | +10.3 pp | — |
| 6 months | +5.1% | +4.4% | +0.7 pp | — |
| Year to date | +11.9% | +12.3% | −0.4 pp | — |
| 1 year | +14.2% | +13.5% | +0.7 pp | +2.1% |
| 3 years | +39.7% | +76.4% | −36.7 pp | +28.7% |
| 5 years | +7.1% | +63.7% | −56.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 13.1 m | 27.3 m | 36.5 m | 17.3 m | 14.3 m | 30.3 m | 45.5 m | 17.1 m |
| Operating income | 242.4 k | 7.3 m | 10.4 m | 1.2 m | -477.0 k | 6.6 m | 11.3 m | 1.2 m |
| Depreciation & amortisation | 2.2 m | 2.8 m | 2.9 m | 2.9 m | 2.9 m | 3.1 m | 3.1 m | 3.1 m |
| Interest expense | 1.7 m | 1.8 m | 1.6 m | 1.5 m | 1.6 m | 1.7 m | 1.6 m | 1.6 m |
| Pre-tax income | 267.4 k | 6.9 m | 10.0 m | 699.9 k | -238.5 k | 6.2 m | 11.3 m | 713.7 k |
| Income tax | 126.6 k | 1.6 m | 2.4 m | 161.5 k | -34.2 k | 1.3 m | 2.6 m | 154.8 k |
| Net income | 140.8 k | 5.3 m | 7.7 m | 538.4 k | -204.3 k | 4.9 m | 8.7 m | 558.9 k |
| Diluted EPS | 0.01 ≈ | 0.51 | 0.74 | 0.05 | -0.02 ≈ | 0.47 | 0.84 | 0.05 |
| Operating cash flow | 377.4 k | 827.2 k | 21.0 m ≈ | 6.4 m ≈ | 675.1 k | 1.1 m | 15.4 m ≈ | 5.9 m ≈ |
| Capex | 5.5 m | 5.7 m | 4.9 m ≈ | 5.0 m ≈ | 5.0 m | 5.6 m | 4.2 m ≈ | 6.3 m ≈ |
| Dividends paid | 2.0 m | 2.1 m | 2.1 m ≈ | 2.1 m ≈ | 2.1 m | 2.1 m | 2.3 m ≈ | 2.3 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 39 percentile of its own 33-quarter history (min 15.2, median 19.4, max 33.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 65.5 m | 68.0 m | 63.1 m | 75.2 m | 84.2 m | 97.4 m | 84.6 m | 95.3 m |
| Revenue YoY | +5.2% | +3.8% | −7.3% | +19.2% | +12.0% | +15.8% | −13.1% | +12.6% |
| Net income | 7.3 m | 8.7 m | 10.6 m | 10.1 m | -31.7 m | 11.3 m | 11.8 m | 13.3 m |
| Net income YoY | +17.1% | +19.2% | +21.5% | −4.4% | −414.1% | unavailable | +4.1% | +12.9% |
| Diluted EPS | 0.95 | 1.08 | 1.30 | 1.22 | -3.48 | 1.14 | 1.16 | 1.29 |
| Diluted EPS YoY | +10.5% | +13.7% | +20.4% | −6.2% | −385.2% | unavailable | +1.8% | +11.2% |
| net % | 11.1% | 12.8% | 16.7% | 13.4% | -37.7% | 11.6% | 13.9% | 13.9% |
| Free cash flow | -9.8 m | -7.2 m | -10.1 m | -8.4 m | -9.9 m | -1.5 m | -4.7 m | 8.2 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 2.3 m USD
- Financial debt
- 145.8 m USD
- Net debt
- 143.4 m USD
- Equity
- 113.6 m USD
- Total assets
- 329.8 m USD
- Debt / equity
- 1.28x
- Current ratio
- 1.03x
- ROE
- 12.0%
- ROA
- 4.1%
- FCF margin
- 8.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 63.1 m | 75.2 m | 84.2 m | 97.4 m | 84.6 m | 95.3 m | SEC (XBRL)· 04 Dec 2025verified |
| Operating income | 12.5 m | 14.8 m | 14.9 m | 17.7 m | 17.1 m | 18.4 m | SEC (XBRL)· 04 Dec 2025verified |
| Depreciation & amortisation | 8.1 m | 8.7 m | 9.2 m | 10.0 m | 10.5 m | 11.5 m | SEC (XBRL)· 04 Dec 2025verified |
| EBITDA | 20.6 m ≈ | 23.4 m ≈ | 24.1 m ≈ | 27.7 m ≈ | 27.6 m ≈ | 29.9 m ≈ | SEC (XBRL)· 04 Dec 2025derived |
| Interest expense | 4.1 m | 4.1 m | 4.5 m | 5.6 m | 6.5 m | 6.5 m | SEC (XBRL)· 04 Dec 2025verified |
| Pre-tax income | 13.9 m | 13.3 m | -43.1 m | 14.8 m | 15.5 m | 17.4 m | SEC (XBRL)· 04 Dec 2025verified |
| Income tax | 3.3 m | 3.2 m | -11.4 m | 3.5 m | 3.7 m | 4.1 m | SEC (XBRL)· 04 Dec 2025verified |
| Net income | 10.6 m | 10.1 m | -31.7 m | 11.3 m | 11.8 m | 13.3 m | SEC (XBRL)· 04 Dec 2025verified |
| Diluted EPS | 1.30 | 1.22 | -3.48 | 1.14 | 1.16 | 1.29 | SEC (XBRL)· 04 Dec 2025verified |
| Weighted average diluted shares | 8.1 m | 8.3 m | 9.1 m | 9.9 m | 10.2 m | 10.3 m | SEC (XBRL)· 04 Dec 2025verified |
| Dividend per share | 0.70 | 0.74 | 0.78 | 0.79 | 0.80 | 0.83 | SEC (XBRL)· 04 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 291.1 k | 1.5 m | 4.9 m | 1.5 m | 894.2 k | 2.3 m | SEC (XBRL)· 04 Dec 2025verified |
| Receivables | 3.4 m | 4.9 m | 5.4 m | 4.2 m | 4.5 m | 4.8 m | SEC (XBRL)· 04 Dec 2025verified |
| Current assets | 14.4 m | 25.1 m | 35.5 m | 26.8 m | 25.1 m | 23.3 m | SEC (XBRL)· 04 Dec 2025verified |
| Total assets | 281.7 m | 310.1 m | 290.3 m | 303.7 m | 320.7 m | 329.8 m | SEC (XBRL)· 04 Dec 2025verified |
| Accounts payable | 4.4 m | 7.7 m | 8.6 m | 5.8 m | 5.4 m | 7.1 m | SEC (XBRL)· 04 Dec 2025verified |
| Short-term debt | 0 | 7.0 m | 0 | 4.4 m | 11.2 m | 0 | SEC (XBRL)· 04 Dec 2025verified |
| Long-term debt | 123.8 m | 133.5 m | 135.7 m | 125.8 m | 136.7 m | 145.8 m | SEC (XBRL)· 04 Dec 2025verified |
| Current liabilities | 16.6 m | 26.0 m | 22.3 m | 32.9 m | 28.7 m | 22.5 m | SEC (XBRL)· 04 Dec 2025verified |
| Equity | 88.9 m † | 99.7 m † | 93.1 m † | 100.7 m † | 108.1 m † | 113.6 m † | SEC (XBRL)· 04 Dec 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 12.8 m | 11.6 m | 15.6 m | 23.8 m | 17.4 m | 28.9 m | SEC (XBRL)· 04 Dec 2025verified |
| Capex | 22.9 m | 20.0 m | 25.5 m | 25.3 m | 22.1 m | 20.7 m | SEC (XBRL)· 04 Dec 2025verified |
| Free cash flow | -10.1 m ≈ | -8.4 m ≈ | -9.9 m ≈ | -1.5 m ≈ | -4.7 m ≈ | 8.2 m ≈ | SEC (XBRL)· 04 Dec 2025derived |
| Investing cash flow | -30.7 m | -25.8 m | -30.6 m | -27.4 m | -22.0 m | -20.7 m | SEC (XBRL)· 04 Dec 2025verified |
| Financing cash flow | 16.6 m | 15.5 m | 18.4 m | 218.9 k | 4.0 m | -6.8 m | SEC (XBRL)· 04 Dec 2025verified |
| Dividends paid | 5.6 m | 6.0 m | 7.0 m | 7.8 m | 8.1 m | 8.5 m | SEC (XBRL)· 04 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 31 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40 · (margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 248.3 m USD
Key indicators
Coverage and freshness
Score by group
- Valuation31
- Returns30
- Quality51
- Balance sheet9
- Growth35
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.18 – 45.18 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)0.18 – 5.80 (Mid 0.18)WACC 7.6% · starting FCFF 7.0 m USD · terminal value share of EV 79%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA19.08 – 23.37 (Mid 20.50)3 companies used · median multiple 11.8x · quartiles 11.3x – 12.7xCPK, OKE, SWX
- Peers: P/E17.93 – 45.18 (Mid 24.36)4 companies used · median multiple 18.2x · quartiles 13.4x – 33.7xCPK, CTRI, OKE, SWX
- Dividend discount (DDM)10.91 – 14.67 (Mid 12.51)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 31/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 5.5% | 60 (vs peers) | 11% |
| Net margin · Quality | 13.1% | 87 (on a fixed band) | 7% |
| FCF conversion · Quality | 14.4% | 0 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 4.2% | 35 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 4.8x | 0 (on a fixed band) | 11% |
| Interest coverage · Balance sheet | 2.9x | 21 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 0.9x | 12 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 17.8x | 60 (vs peers) | 11% |
| EV/EBITDA · Valuation | 12.9x | 19 (on a fixed band) | 11% |
| FCF yield · Valuation | 0.8% | 10 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 3.5% | 51 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 436.6% | 0 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet9/100 · 3/3 factors with a value
- Growth· partial35/100 · 1/2 factors with a value
- Quality51/100 · 3/3 factors with a value
- Returns30/100 · 2/2 factors with a value
- Valuation31/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
RGC Resources, Inc. (RGCO). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 95.3 m USD in 2025; YoY growth 12.6%; net margin 13.1%; ROE 11.7%; net debt/EBITDA 4.8x.
The estimated value range is 14.42–19.02 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 16.51 USD, the price of 23.83 USD leaves a potential of -30.7% (value / price − 1) and a margin of safety of -44.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 31/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 13.1%
What contradicts it
- FCF conversion: 14.4%
- Net debt / EBITDA: 4.8x
- Interest coverage: 2.9x
- Current ratio: 0.9x
- EV/EBITDA: 12.9x
- FCF yield: 0.8%
- Payout ratio (FCF): 436.6%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.
Versus the vertical median
Natural Gas Transmisison & Distribution (SIC 4923) · same industry (4-digit SIC) · compared with 6 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| OKEONEOK, Inc. | 55.9 bn | 13.8 | 17.9% | 9.4% | +55.0% | +22% / +29% |
| SWXSouthwest Gas Holdings, Inc. | 6.7 bn | 12.2 | 14.1% | — | +9.6% | +11% / +56% |
| CPKChesapeake Utilities Corp | 3.4 bn | 22.6 | 9.5% | 15.1% | +18.1% | +2% / +48% |
| CTRICenturi Holdings, Inc. | 2.1 bn | 67.1 | 4.0% | 0.9% | +13.1% | −9% / unavailable |
| BIPCBrookfield Infrastructure Corporation | 1.7 bn | — | — | -6.6% | +0.1% | −16% / +24% |
| NEXTNextdecade Corporation | 1.7 bn | 129.9 | 292.6% | — | unavailable | +2% / +25% |
| RGCORGC Resources, Inc. | 248.3 m | 17.8 | 11.7% | 13.1% | +12.6% | +14% / +40% |
1- and 3-year price returns: for RGCO from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 14.07 Total return -38% · Per year -38% | 24.87 Total return 8% · Per year 8% | 37.47 Total return 62% · Per year 62% |
| 3 years | 13.58 Total return -35% · Per year -13% | 27.03 Total return 25% · Per year 8% | 44.71 Total return 103% · Per year 27% |
| 5 years | 13.11 Total return -31% · Per year -7% | 29.37 Total return 44% · Per year 8% | 53.36 Total return 151% · Per year 20% |
- Exit P/E± 6.76
- Net margin± 4.73
- Annual revenue growth± 3.89
- Annual dilution± 0.40
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
RGC Resources is an energy services company that distributes natural gas through its Roanoke Gas subsidiary in Roanoke, Virginia, serving about 63,800 customers. It matters now because of a regulated rate settlement, a new non-gas rate increase and infrastructure investment that could support margins if results keep improving.
SWOT
Strengths
- The company operates under exclusive distribution franchises, which give it a protected position in its service area.
- Rate mechanisms such as WNA, SAVE and PGA help stabilize earnings and recover costs.
- The customer base is growing steadily, and the residential segment provides relatively predictable revenue.
Weaknesses
- Activity is geographically concentrated in the Roanoke Valley, exposing the company to local economic and weather changes.
- Recovery of non-gas costs through rates usually lags, and inflation can reduce margins until a new rate application is approved.
- Dependence on a few interstate pipelines raises operational risk and the risk of delivery interruptions.
Opportunities
- Qualified infrastructure investment can expand the capital base and generate additional revenue through the SAVE mechanism.
- Converting other energy users to gas and extending service could support long-term volume growth.
- The RNG facility could open opportunities in renewable gas production if demand grows.
Threats
- Climate policies and restrictions on fossil fuels could reduce gas demand or favor electrification.
- Gas price volatility could lead to customer losses or collection problems for customers who cannot pay their bills.
- Safety incidents, cyber attacks or pipeline failures could cause financial losses and reputational damage.
Risks
- Gas price and availabilityhigh
Gas costs are the largest expense. Sharp price increases could delay PGA recovery and could reduce usage or increase bad debt.
- Rate regulationmedium
Rates are approved by the SCC. Delays in approving increases or refusal to recover costs could reduce earnings, and issuing debt or equity also requires SCC approval.
- Pipeline safety and compliancehigh
Pipeline incidents or non-compliance with safety rules could lead to fines, lawsuits and customer loss with a significant effect on financial position.
- Cyber securitymedium
Information systems are targets of cyber attacks. An incident could corrupt data, interrupt deliveries or expose confidential information, and insurance covers only part of the losses.
- Access to capital and debtmedium
The company relies on credit lines and capital markets for funding. Market conditions or covenant requirements could raise borrowing costs or limit funding capacity.
Investment thesis
What would need to be true (bull case)
- Approved rate increases and qualified SAVE investment could support revenues and margins in the coming years, if inflationary pressure remains under control.
- The customer base grows steadily, and the residential segment offers relatively stable demand supported by conversions from other energy sources.
- The regulated monopoly position, with exclusive franchises running to 2035, offers protection from direct competition in the service area.
What would break the thesis
- Inflation and delayed recovery of non-gas costs could limit margins, especially if SCC handles rate requests slowly.
- Electrification and emission-reduction policies could reduce long-term gas demand and could weigh on growth.
- Geographic concentration and dependence on a few pipelines raise the risk that a local incident or delivery interruption could affect results.
What to watch
- Final resolution of the non-gas rate case and refund of amounts collected in excessQ1 2027
- SCC decision on the updated SAVE rider for fiscal 2027September 2026
- Trend in customer count and industrial volumes after one industrial customer ceased operationsQ4 2026
- Full-year results for fiscal 2026 and the effect of rate increases on marginNext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
RGC Resources, Inc. (Nasdaq: RGCO) is an energy services company whose main activity is the regulated distribution of natural gas through its subsidiary Roanoke Gas, which serves residential, commercial and industrial customers in Roanoke, Virginia, and surrounding localities. According to its 10-K for fiscal 2025, Roanoke Gas accounted for more than 99% of total revenues, with gas utility revenue of 95,231,943 USD. The subsidiary Midstream holds a less than 1% investment in Mountain Valley Pipeline.
The company operates in a regulated, monopolistic environment, holding exclusive franchises in the cities of Roanoke and Salem and the Town of Vinton; all three franchises expire on December 31, 2035, and the company expects to renew them. Revenues are affected by gas costs, weather-driven volumes and the non-gas part of rates, with gas costs passed to customers through the PGA mechanism. Seasonality is strong, with approximately 63% of fiscal 2025 deliveries made in the November to March period.
Infrastructure includes three interstate pipelines providing up to 93,606 DTH per day in winter, plus an LNG facility with storage of up to 200,000 DTH. The company had 106 full-time employees at September 30, 2025. Key risks include gas price volatility, dependence on a few pipelines, cyber security and geographic concentration of activity.
Segments
Residential customers
Residential customers represent over 91% of the customer count, but less than 35% of delivered volumes and more than half of revenues and margin in fiscal 2025.
Commercial and industrial customers
Commercial and industrial customers make up a smaller share of the customer count but a large share of volumes. Industrial customers mainly include transportation customers that buy gas directly from other suppliers and use the Roanoke Gas system for delivery; in the third quarter of fiscal 2026 one industrial customer ceased operations.
Midstream investment
The subsidiary RGC Midstream, LLC holds a less than 1% investment in MVP, Southgate and Boost. Its contribution was steady in the third quarter of fiscal 2026, but equity earnings from the MVP were lower after the project moved from construction into service.
Market context
The company's core market is the Roanoke Valley in Virginia, where gas demand depends on weather, local economic activity and competition from other energy sources such as electricity, propane or renewables. The customer base grew to about 62,500 in fiscal 2025 and to about 63,800 by June 2026, showing steady growth mainly in residential customers.
Natural gas prices have declined since the December 2022 peak, but volatility remains important. If prices rise quickly, cost recovery through the PGA could lag, and consumers could reduce usage or switch to other energy sources, which would affect deliveries and revenues.
Trends
- Non-gas base rate increasetailwind
The company filed in December 2025 for a non-gas rate increase of 4.3 million USD per year to offset inflationary pressure. After a settlement with SCC staff, annual revenues could rise by 3.85 million USD, with final resolution expected in the first quarter of fiscal 2027.
- SAVE infrastructure investmenttailwind
The SAVE program lets the company recover costs of qualified infrastructure investment until a new rate application is filed. SAVE revenues increased in fiscal 2025, and the updated SAVE rider could generate about 2.61 million USD of annualized revenues in fiscal 2026, supporting near-term revenue.
- Inflation in operating costsheadwind
Inflation puts pressure on health care, insurance, contracted services and IT costs, and recovery of these costs through rates comes with a lag. Inflationary pressure was also cited in the third quarter of fiscal 2026, when operating expenses rose by nearly the same amount as margin.
- Energy transition and environmental policymixed
Climate policies, emission restrictions and a preference for electrification could reduce long-term gas demand. At the same time, energy demand, including gas, is supported by growing use of digital platforms, and the company already produces renewable natural gas through its RNG facility.
Competitive position
Roanoke Gas holds exclusive distribution franchises in its Virginia service areas, so direct distribution competition is limited. Real competition comes from other energy sources such as electricity, propane, fuel oil, coal and solar or wind, with price the main selection factor, especially for industrial customers who can switch to alternative fuels.
Customer loss risk rises if gas becomes more expensive than other sources or if developers choose alternative heating systems. The company responds by extending distribution and converting other energy users to gas, which could partly offset this pressure.
- Electricity providers
Electricity is a direct alternative for heating and cooking, and competition intensifies especially when electric rates are more attractive or supported by electrification policies.
- Propane suppliers
Propane competes mainly in areas without access to the gas network, and price relative to natural gas is the main selection criterion.
- Fuel oil and coal suppliers
Fuel oil and coal are alternatives used mainly by industrial customers who can switch to alternative fuels relatively easily.
- Solar and wind producers
Renewable energy competes mainly in electricity generation, and growth of this competition could affect long-term demand.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report02 Nov 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report14 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Current report07 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Current report04 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report18 May 2026Regulation FD disclosure · Financial statements and exhibits
- Current report08 May 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / RGC Resources, Inc. · 04 Dec 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / RGC Resources, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / RGC Resources, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.