September 16, 2025
Investor Update Boston, Massachusetts
Forward-Looking Statements The statements in this presentation contain forward-looking statements that relate to future transactions, events or expectations. In addition, Resources may announce or publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, investments, inflation, ratemaking, debt refinancing, technological developments, new products, research and development activities, operational impacts and similar matters. These statements are based on management’s current expectations and information available at the time of such statements and are believed to be reasonable and are made in good faith. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. 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 the anticipated results or other expectations expressed in the Company’s forward-looking statements. The risks and uncertainties that may affect the operations, performance, development and results of the Company’s business include, but are not limited to those set forth in the following discussion and within Items 1A “Risk Factors” and 1C “Cybersecurity” of the Company’s 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission, which is available at www.sec.gov and on the Company’s website at www.rgcresources.com. These factors are difficult to predict and many are beyond the Company’s control. Accordingly, while the Company believes its forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. When used in the Company’s documents or news releases, the words “anticipate,” “believe,” “intend,” “plan,” “estimate,” “predict,” “target,” “expect,” “objective,” “projection,” “potential,” “forecast,” “budget,” “assume,” “indicate” or similar words or future or conditional verbs such as “will,” “would,” “should,” “can,” “could,” “may,” or “might” are intended to identify forward-looking statements. 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. 1
Agenda Operational and Financial Highlights Roanoke Gas RGC Midstream Outlook Questions 2
2025 Operational Performance No system outages Delivered 1.9M DTH in January 2nd highest month ever On pace to deliver 11M+ DTH Installed 50% more main miles than fiscal 2024 Expect to add 700+ gross new services 4
Volumes & Heating Degree Days 12
3,500
3,000
10
2,500 8
Millions
2,000 6 1,500 4 1,000 2
500
-
2011
2012 2013
2014
2015
2016
2017
2018
Total Volumes (Dth)
2019
2020
2021
2022
2023
2024 2025F
Dth per HDD 5
Customer Growth 64,000 63,000 62,000 61,000 60,000 59,000 58,000 57,000 56,000 55,000
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025F
6
Roanoke Gas Top Customers Building Materials
Manufacturing
Healthcare
Higher Education Transportation
Municipal
7
Capital Investment $30
$25
Low pressure, cast iron and bare steel replacement complete
New five-year SAVE program approved
Millions
$20
$15
$10
$5
$0
2016
2017
2018
2019
2020
SAVE
2021
2022
2023
2024
2025F
Cap Ex 8
Rate Base $300
$250
Millions
$200
$150
$100
$50
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025F
9
Regulatory Rate case final order received in April $4.08M in new annual revenue 9.9% ROE on 59% equity ratio
Positive staff reports on SAVE and RNG rider updates Pending approval would be effective October 1
Evaluating 2026 rate case
10
RRHA (2022 – 2025) $2.1M gross utility plant 5 properties 211 meters Enhanced safety Roanoke Gas owns and operates Master meters removed
11
Upcoming Projects
12
Regional Opportunities
13
Summit View Business Park Stik-Pak Solutions Continuing economic development interest Near commercial and residential
14
Rocky Mount
15
Medical
16
Mountain Valley Pipeline (MVP) In service June 14, 2024 with two interconnects
System stability
Capacity improves attractiveness for existing and new employers
18
According to a comprehensive report by the Federal Energy Regulatory Commission (FERC), along with the North American Electric Reliability Corp.
The MVP played a “crucial role” in keeping the power on in Virginia, North Carolina, and South Carolina. 19
RGC Midstream, LLC Cash distributions for fiscal 2025 totaled $3.64M Expect Midstream to have a modest contribution to consolidated net income Two cash flow enhancement projects Southgate Boost (Expansion)
Separate LOC facilities for capital investment in Southgate and Boost 20
MVP – New Projects Southgate (2028) New pipeline from Station 165 into North Carolina 550M DTH/day capacity In design / permitting phase
Boost (2029) Additional compression Increase capacity by 0.5B DTH/day to 2.5B
Boost Southgate 21
Midstream Debt Refinancing Refinanced all four Midstream loans
totaling $53.6M into one new note Interest rate SOFR + 155bps Matures 2032
Amortize principal of ≈$711k / quarter beginning October 1, 2025
New interest rate swaps, in conjunction
with existing swaps, yield an effective rate for fiscal 2025 of 4.67%
22
Debt Profile Remaining $120M on private shelf facilities Up to $30M availability on LOC facility – Matures March 2027 Long-term Debt Maturities September 8, 2024 $40 $35 $30 $25 $20 $15 $10 $5 $2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Gas - Bank
Gas - Private
MidStream
23
Equity Profile Equity:
Top shareholders: Anita G. Zucker 13% Gabelli Funds 7% Vanguard Group 4% Blackrock 4% Columbia Threadneedle 4% 6.8% insider ownership
$227M market capitalization Common shares issued and outstanding: 10,336,685 $36.2M availability on equity shelf At the market (ATM)
Market data as of September 8, 2025
24
2026 Capital Forecast
29% 48% 23%
SAVE & Renewals
$ 10.5
Utility Upgrades
6.4
Customer Growth & System Expansion MVP Growth MVP CAC
4.9
Total
2.8 (2.8) $ 21.8
26
2026 Drivers
Helping
Hurting
$22M capital plan SAVE annual update System growth Medical expansion Timing of rate case
RRHA completion Discount rate (pension / post-retirement) Inflation Interest Depreciation
27
Earnings Per Share $1.30
$1.27
$1.28
$1.24
$0.06 $1.18
$1.16 $0.06
$1.12
$1.18 $1.06
$1.00
2024 Actual
EPS
RRHA Impact
2025 Forecast
Range
2026 Preliminary Guidance 28
Stock Price and Dividends Per Share $32.00
$0.90
$30.00
$0.85
$28.00
$0.80
Stock price
$0.75
$24.00
$0.70
$22.00
$0.65
$20.00
$0.60
$18.00
$0.55
$16.00 $14.00 $12.00 $10.00
Dividends per share
$26.00
$0.50 Share Price
Dividends / share
$0.45 $0.40
Data through August 29, 2025
29
Why Buy RGCO? Demonstrated Track Record of Delivering Shareholder Value
Total Shareholder return of 217% since 2010 Dividend payments ever year since WWII (80+ years) 20+ years of consecutive dividend increases
Highly Stable Business Model
Consistent regulatory environment Prospective cost recovery mechanisms Private shelf agreements to support debt capital needs
Attractive Fundamental Environment Significant Growth Potential
Natural gas has cost/reliability advantages to other fuels Natural gas recognized as part of long-term energy solution State/regional business environment strong and growing Continued steady growth in existing footprint Google / other regional wins Expansion into Franklin County Regional impact of MVP flowing 2B+ DTH/day 30
Appendix
Consolidated Financial Results For the periods ended June 30,
(Presented in thousands, except per share data)
Three Months Ended 2025 2024 Operating revenues $ Operating expenses Operating income Earnings of unconsolidated affiliate Other income (expense), net Interest expense Income before income taxes Income tax expense Net income $ Basic earnings per share Diluted earnings per share
$ $
Year to Date 2025 2024
17,265 $ 16,068 1,197 772 244 1,513 700 162 538 $
14,458 $ 12,901 1,557 283 (69) 1,567 204 47 157 $
81,016 $ 62,092 18,924 2,427 1,181 4,923 17,609 4,125 13,484 $
71,537 54,698 16,839 2,980 141 4,770 15,190 3,570 11,620
0.05 0.05
0.02 0.02
1.31 1.31
1.15 1.15
$ $
$ $
$ $
32