RGC Resources Reports Q3 Revenue Decrease, Net Income Increase, and Strategic Regulatory Developments

RGC Resources, Inc. reported its financial results for the third quarter and nine months ended June 30, 2026, revealing a slight decrease in total operating revenues to $17.1 million, down 1% from $17.3 million in the same period last year. The company's net income for the quarter was $558,900, a modest increase from $538,412 in the prior year. For the nine-month period, total operating revenues rose by 15% to $92.8 million, compared to $81 million in the previous year, driven primarily by higher natural gas commodity prices and the implementation of a non-gas base rate increase.

The company experienced a 12% decrease in the cost of gas for the quarter, which contributed to an 8% increase in gross utility margin, reaching $10.2 million. This increase was attributed to higher non-gas base rates, increased delivered volumes, and revenues from the SAVE Plan. However, the overall customer volumes for residential and commercial sectors declined by 1%, despite a 27% increase in transportation and interruptible volumes, indicating a shift in customer usage patterns. The average commodity price per dekatherm decreased to $3.10 from $3.60 in the prior year, reflecting lower natural gas prices.

Strategically, RGC Resources has been active in regulatory matters, successfully negotiating a settlement with the Virginia State Corporation Commission (SCC) that will increase annual revenues by $3.85 million, effective August 1, 2026. The company has also filed for updates to its Renewable Natural Gas (RNG) Rider and SAVE Rider, which are expected to further enhance revenue streams. Additionally, the company is addressing operational challenges related to its liquefied natural gas (LNG) facility, which will not be available for the upcoming winter heating season due to damage sustained during a routine inspection.

Operationally, RGC Resources serves approximately 63,800 customers in the Roanoke area, and its workforce has remained stable. The company continues to invest in infrastructure projects, with capital expenditures for the nine months ending June 30, 2026, totaling approximately $16.1 million. The company anticipates that these investments will support future growth and operational efficiency. Looking ahead, RGC Resources expects to navigate the challenges posed by inflation and fluctuating natural gas prices while maintaining its commitment to regulatory compliance and customer service.