ROANOKE, Va., May 06, 2026 (GLOBE NEWSWIRE) -- 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 SubsidiariesCondensed Consolidated Statements of Income(Unaudited) Three Months Ended Six Months Ended March 31, March 31, 2026 2025 2026 2025 Operating revenues$45,457,009 $36,462,097 $75,717,477 $63,751,583Operating expenses 34,173,059 26,062,155 57,883,190 46,023,620Operating income 11,283,950 10,399,942 17,834,287 17,727,963Equity in earnings of unconsolidated affiliates 903,991 801,175 1,731,061 1,655,388Other income, net 692,421 463,633 1,197,410 936,969Interest expense 1,585,838 1,630,275 3,256,988 3,410,205Income before income taxes 11,294,524 10,034,475 17,505,770 16,910,115Income tax expense 2,550,034 2,358,267 3,878,415 3,964,218 Net income$8,744,490 $7,676,208 $13,627,355 $12,945,897 Net earnings per share of common stock: Basic$0.85 $0.74 $1.34 $1.26Diluted$0.84 $0.74 $1.31 $1.26 Cash dividends per common share$0.2175 $0.2075 $0.4350 $0.4150 Weighted average number of common shares outstanding: Basic 10,232,835 10,304,222 10,177,581 10,281,725Diluted 10,404,657 10,308,368 10,378,996 10,285,939 Condensed Consolidated Balance Sheets(Unaudited) March 31, Assets 2026 2025 Current assets $25,712,684 $25,777,943 Utility property, net 278,879,716 267,560,507 Other non-current assets 32,512,418 33,082,837 Total Assets $337,104,818 $326,421,287 Liabilities and Stockholders' Equity Current liabilities $37,334,730 $45,489,019 Long-term debt, net 128,925,540 115,226,622 Deferred credits and other non-current liabilities 46,760,043 47,872,423 Total Liabilities 213,020,313 208,588,064 Stockholders' Equity 124,084,505 117,833,223 Total Liabilities and Stockholders' Equity $337,104,818 $326,421,287Vice President, Treasurer and CFOTelephone:(540) 777-3997