RGC Resources, Inc. (RGCO)

In the past six months, RGC Resources' stock has experienced fluctuations due to several events. The company reported earnings on August 11, 2025, resulting in a share increase, but the stock has since declined. Prior to this, Q2 earnings on May 6, 2025, led to a price decrease. RGC Resources secured a credit agreement for refinancing on September 9, 2025. In October 2025, the stock fell below its 200-day moving average. The company declared a quarterly dividend with an ex-dividend date of October 17, 2025. Q2 fiscal year 2025 results showed growth in net income and earnings per share due to increased natural gas volumes and new rates. The Mountain Valley Pipeline (MVP) commenced commercial operation in June 2024 and long-term firm capacity obligations in July 2024.

Demand for RGC Resources' natural gas products and services is seasonal, driven by weather conditions. Increased gas volumes occur during colder periods due to higher heating degree days. For example, total delivered gas volumes increased due to a rise in heating degree days in the second quarter of fiscal year 2025. Similarly, residential and small commercial volumes increased in the first quarter of fiscal year 2025 due to a rise in heating degree days. This indicates that demand for natural gas for heating purposes is a significant seasonal factor for RGC Resources.

RGC Resources, Inc. operates as an energy services company focused on the regulated sale and distribution of natural gas through its subsidiary, Roanoke Gas Company, delivering to residential, commercial, and industrial customers. The company manages an extensive pipeline network, metering stations, and a liquefied natural gas storage facility. RGC Resources also produces biogas and holds an ownership stake in the Mountain Valley Pipeline (MVP) and MVP Southgate projects through RGC Midstream.

RGC Resources, Inc. primarily serves customers in Roanoke, Virginia, and its surrounding localities through its integrated natural gas distribution system. The company's geographic footprint extends through its investment in the Mountain Valley Pipeline (MVP) and MVP Southgate projects, a 303-mile interstate natural gas transmission pipeline system from Wetzel County, West Virginia, to Pittsylvania County, Virginia. An expansion project, MVP Boost, is also planned.

RGC Resources, Inc. emphasizes delivering safe, reliable, and affordable energy, with a focus on community involvement and environmental stewardship. The Mountain Valley Pipeline (MVP), in which RGC Resources has an ownership stake, received positive recognition for its role in avoiding supply curtailments during winter weather events. However, auditors have issued a "going concern" warning regarding the need to refinance significant debt obligations, coupled with negative free cash flow and low historical revenue growth, indicating financial risk that could impact the company's brand reputation.

Institutional investors hold a significant portion of RGC Resources, Inc. shares, ranging from approximately 33.47% to 38.29%. Individual ownership accounts for around 20.24% to 20.26%. Major institutional owners include Blackrock, Inc., Vanguard Group Inc., and Gamco Investors, Inc. Et Al. Insiders increased their holdings in April 2025, while institutional investors' holdings remained unchanged. Mutual funds increased their holdings in April 2025.