Skip to main content

Sept 2026 AGA_FINAL

Page 1

Investor Update September 14, 2026


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 and closures, investments, inflation, rate making and other regulatory actions, debt refinancing, technological developments, new products, research and development activities, weather variations, operational impacts, including those related to the LNG facility, 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 2025 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, as well as an updated risk within Item 1A “Risk Factors” of the Company’s March 31, 2026 Form 10-Q. 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. 2


Agenda  Safety  Natural Gas Macro Environment  Operational and Financial Highlights

 RGC Midstream  Roanoke Gas  Outlook  Questions 3


Safety Moment

4


Operational Training Center

5


6


Natural Gas Macro Environment


Natural Gas Affordability Households heating with natural gas have seen inflation adjusted energy costs decline over time while an equivalent annual electric bill has remained flat.

8


US Energy Consumption by Source (as a %)

9


Natural Gas Forecast

10


RGC Midstream, LLC 

Cash distributions for fiscal 2026: $3.3M

Midstream making a contribution to consolidated net income

Debt supporting investment stable into 2030s

Two projects that will enhance cash flow  Southgate  Boost

12


Mountain Valley Pipeline

Roanoke Gas Interconnects 13


MVP – Mainline 

In service June 14, 2024 with two RGC interconnects

2B+ DTH/day capacity

Safe and reliable

Capacity crucial during WS Fern Source: Mountain Valley Pipeline (https://www.mountainvalleypipeline.info/project-overview)

14


15


MVP – Boost  Compression to allow 600k DTH additional daily capacity  Shipper agreements with:    

EQT Energy PSNC Duke Energy Dominion VA Power

 In permitting phase  Total project cost: ≈ $453M

Source: MVP Boost (https://www.mvpboost.info/contact)

16


17


MVP – Southgate   

  

New pipeline from Chatham, VA into North Carolina 550M DTH/day capacity Shipper agreements with: 

PSNC

Duke Energy

In existing right-of-way Construction expected to be complete early 2027 Total project cost ≈ $404M

Source: MVP Southgate

18


LNG Update 

Will not have use of tank for winter, evaluating long-term options

Gas supply enhancements  Added winter capacity on TCO  Main extension underway to bring MVP gas farther into the distribution system 

Negotiating trucked CNG and LNG

20


2026 Operational Performance 

On pace for second consecutive record annual send out (11.7M DTHs)

Recorded our lowest ever third-party damage rate in fiscal 2025; slightly better in fiscal 2026

Successfully reached settlement with SCC Staff on rate case: $3.85M of new annual revenue

Expect to install 5.5 new main miles

Expect to add 550+ new services 21


Delivered Volumes

Record Sendout

12

11

Millions

10

9

8

7

6 2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026F 22


Customer Growth 64,000 63,596

COVID limited non-pay turnoffs

63,000

62,650

62,639

2021

2022

62,937

63,074

62,741

61,930

62,000 61,208

61,000

60,789 60,339

60,000

59,989

59,000

58,000

2016

2017

2018

2019

2020

2023

2024

2025

2026F

23


Roanoke Gas Top Customers Building Materials

Manufacturing

Healthcare

Higher Education

Transportation Municipal

24


Capital Investment New five-year SAVE program approved (2024 – 2028)

$30

$25

Millions

$20

$15

$10

$5

$0

2017

2018

2019

2020

2021

SAVE

2022

2023

2024

2025

2026F

Cap Ex 25


Rate Base $300

$250

Millions

$200

$150

$100

$50

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026F 26


Rate Case Update 

Reached settlement with SCC Staff 

Expect final order in Q1 of fiscal 2027

$3.85M incremental annual revenue

Based on authorized ROE of 9.90%

Stipulated rates effective August 1

Customer refund ($275k) included on balance sheet

First 3 months of fiscal 2027 will see lift 27


Outlook


10-Year & 30-Year Treasury (2020–present) 6%

Interest Rate

5% 4% 3% 2% 1% 0% 10-Year Treasury Bonds

30-Year Treasury Bonds 29


Interest Rate Environment UTILITY Duke Energy (NC/SC) Duke Energy Corp (HoldCo) Dominion Energy (VA Power)

(used in ratemaking)

RECENT ISSUANCE RATE(S)

(2025–2026 offerings)

(new minus embedded)

~4.0–4.5%

~5.0–5.5% (est.)

+1.46%

~$1.5–2.5B

~3.8–4.3%

5.45% / 5.80%

+1.79%

~$7–9B

~4.2–4.6%

4.60% / 5.00% / 5.45%

+0.78%

~$4–6B

5.13%

+1.61%

~$43M

EMBEDDED DEBT COST

GAP

DEBT MATURING (through Dec 2030)

Source: Travis Kavulla, SURFA 2026

Roanoke Gas

~2.0%–4.4%

30


2026 Capital Forecast

SAVE Rider Customer Growth & System Expansion Utility Maintenance Total

23%

$ 9.7 5.0 7.0 $ 21.7

45%

32%

31


Upcoming Projects

32


CapEx Forecast 2027 – 2031 $30 $25

Millions

$20 $15 $10 $5 $-

2027

2028

2029

2030

5-year cumulative totals: SAVE (Authorized until 2028; beyond needs approval)

2031

$

44.6

Customer Growth & System Expansion

57.6

Utility Maintenance

28.9

Total

$ 131.1 33


Equity and Debt Profile Equity:

 Top shareholders:     

 $223M Market Capitalization (as of Sep 9, 2026)

Anita G. Zucker Gabelli Funds Blackrock Columbia Threadneedle Vanguard Group

13% 6% 4% 4% 3%

 Common shares issued and outstanding: 10,430,106  6.5% insider ownership

Debt:

 $50M on private shelf facility  Up to $30M availability on LOC facility – Matures March 2028 $40 $35 $30 $25 $20 $15 $10 $5 $-

On calendar basis

2026

2027

2028

Gas - Bank

2029

2030

2031

Gas - Private

2032

2033

2034

Midstream 34

Market data as of May 15, 2025


2027 Income Statement Impact

Margin Rate case (3 months) SAVE annual update Increased customers Large industrial usage  Yokohama closure  UPS usage  : Accretive to EPS

Expenses  Depreciation  Interest Rates  Property Taxes  Inflation

 : Negative to EPS 35


Earnings Per Share $1.39

$1.35

$1.36

$1.32

$1.33

$1.29

$1.30 $1.27

$0.06

$1.24

$1.29

$1.29

67%

$1.21 $1.18 $1.15 $1.12

Dividend Payout Ratio:

$1.16

71%

$0.06

$1.09 $1.06 $1.03 $1.00

2024 Actual

2025 Actual

EPS

Range

2026 Forecast 2027 Guidance

RRHA Impact 36

36


Shareholder Return: Dividends  330 consecutive quarterly dividends (82+ years)

$0.87 $0.85

$0.83 85.0%

$0.80 $0.78*

 Annual dividend increase 22 consecutive years

95.0%

$0.79 75.0%

$0.75

65.0%

$0.65

2022

2023

2024

Annual Dividend/Share

2025

2026F

55.0%

Payout Ratio

* 2022 excludes non-cash impairment charge 37


Stock Price and Dividends Per Share $32.00

$0.90

$30.00

$0.85

$28.00

$0.80 $0.75

Dividends per share

Stock price

$26.00 $24.00

$0.70

$22.00

$0.65

$20.00

$0.60

$18.00

$0.55

$16.00 $14.00 $12.00 $10.00

$0.50 Share Price

Dividends / share

$0.45 $0.40

Data through August 31, 2026 38


Why Buy RGCO? Business Model

Industry

• Track record of rate base growth • Positive regulatory state executed well • Strong balance sheet ensures debt capital availability

• Domestic shift from coal to natural gas • International appetite for LNG • Worldwide demand for power • Recognition of natural gas’ importance

Fundamentals

Growth Potential

• RGC regulated eliminates gas price risk • Strong ROE (9.9%) • Rate case settlement with SCC Staff in July • Incredible history of dividend payment and earnings growth

• Continued projected population growth for region • First AI center in region moving quickly • Medical hub for SW Virginia • Multi-year rate cases recently introduced by regulator 39


Q&A

40


Appendix

Consolidated Financial Results For the periods ended June 30,

(Presented in thousands, except per share data)

Three Months Ended 2026 2025 Operating revenues Operating expenses Operating income Earnings of unconsolidated affiliates Other income, net Interest expense Income before income taxes Income tax expense Net income

$

Basic earnings per share Diluted earnings per share

Year to Date 2026 2025

$

17,106 $ 15,933 1,173 764 329 1,552 714 155 559 $

17,265 $ 16,068 1,197 772 244 1,513 700 162 538 $

92,823 $ 73,816 19,007 2,495 1,526 4,809 18,219 4,033 14,186 $

81,016 62,092 18,924 2,427 1,181 4,923 17,609 4,125 13,484

$ $

0.05 $ 0.05 $

0.05 $ 0.05 $

1.39 $ 1.37 $

1.31 1.31

42

42


Appendix

Consolidated Balance Sheet As of June 30,

(Presented in thousands)

2026

2025

$

22,007 $ 282,506 35,146 339,659 $

21,596 270,538 32,624 324,758

Liabilities and Stockholders' Equity Current maturities of long-term debt $ Other current liabilities Long-term debt, net Deferred credits and other non-current liabilities Total Liabilities Stockholders' Equity Total Liabilities and Stockholders' Equity $

2,846 $ 20,561 145,607 47,771 216,785 122,874 339,659 $

2,535 18,161 139,743 48,058 208,497 116,261 324,758

Assets Current assets Utility property, net Other non-current assets Total Assets

$

43

43


Turn static files into dynamic content formats.

Create a flipbook
Sept 2026 AGA_FINAL by RGCResourcesInc - Issuu