RGC Resources, Inc. (RGCO)

RGC Resources' stock price has increased by 7.91% over the past six months. The Board of Directors approved a quarterly dividend payment of 21.75 cents per share, raising the annual dividend to 87 cents per share, marking the 22nd consecutive year of dividend increases. Thomas Patrick Furcron, VP, Field Operations, purchased 20.574 shares of common stock, and there have been 10 insider buying transactions over the past three months. For the fiscal year ended September 30, 2025, RGC Resources reported consolidated earnings of $13.3 million, or $1.29 per share, an increase from $11.8 million, or $1.16 per share, in fiscal year 2024. The imminent commencement of MVP operations is considered a significant catalyst for the company. The full implementation of a rate case is projected to increase revenue by $4.08 million through June 30, 2025.

Demand for RGC Resources' natural gas products and services is seasonal and influenced by weather conditions, with colder winters leading to higher gas volumes. The fourth fiscal quarter is generally weaker due to seasonal factors. Residential customers constitute over 91% of the customer base but account for less than 35% of the total gas volumes delivered. Commercial and industrial customers contribute approximately 67% of the annual gas distribution volume and 40% of revenues. The construction season is anticipated to boost future growth in main extensions and service connections.

RGC Resources, Inc. is an energy services company that distributes natural gas to around 62,500 customers through its subsidiary, Roanoke Gas Company, and offers unregulated services. The company distributes natural gas through 1,180 miles of pipeline, 11 metering stations, and a liquefied natural gas storage facility. RGC Resources is also involved in natural gas marketing, energy infrastructure services, biogas production, and investments in the Mountain Valley Pipeline (MVP) and the proposed MVP Southgate project.

The company's primary geographic footprint is in Roanoke, Virginia, and its surrounding localities, including the cities of Roanoke and Salem, and the Town of Vinton. RGC Resources has expanded its service offerings to Franklin County. The Mountain Valley Pipeline, in which RGC Resources has an investment, originates in West Virginia and extends into Virginia, passing through Roanoke Gas's service territory.

RGC Resources, Inc. maintains a positive brand reputation, built on a long history of serving customers since its founding in 1883. The company is committed to delivering safe, reliable, and affordable energy solutions, with a focus on community involvement and environmental stewardship. RGC Resources successfully refinanced and extended RGC Midstream's debt in September 2025. During a cold winter, RGC Resources effectively delivered gas, achieving its highest annual volume. The company increased its annual dividend for the 22nd consecutive year. The in-service of the Mountain Valley Pipeline in June 2024 is expected to positively impact the Roanoke Valley economy. Roanoke Gas initiated natural gas service in Franklin County in 2024. A new $49 million, five-year SAVE plan was approved to continue methane emissions reduction efforts and enhance system safety and reliability.

Institutional ownership of RGC Resources, Inc. is approximately 33.25% to 38.16%, while individual ownership is around 20.26% to 20.27%. Insider ownership is reported at 10.18%. Major institutional owners include State Street Corp., Hennessy Advisors, Inc., Vanguard Fiduciary Trust Co. (Vanguard Group Inc.), GAMCO Asset Management, Inc., Russell Investments Group Ltd., BlackRock, Inc., JPMorgan Chase & Co., Ameriprise Financial Inc., Teton Advisors Inc., Goldman Sachs Group Inc., MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., Bailard Inc., D.A. Davidson & CO., Geneos Wealth Management Inc., Envestnet Asset Management Inc., Cutter & CO Brokerage, Inc., Burke & Herbert Bank & Trust Co., and Prospera Financial Services, Inc.