RGC Resources, Inc. (RGCO): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumerja el plan estratégico de RGC Resources, Inc. (RGCO), una compañía dinámica de distribución de gas natural que transforma la infraestructura energética en el paisaje de Virginia. Al crear meticulosamente un lienzo de modelo comercial integral, este innovador proveedor de servicios públicos demuestra cómo las asociaciones estratégicas, la tecnología de vanguardia y los enfoques centrados en el cliente pueden revolucionar la entrega de energía regional. Desde el suministro de gas confiable hasta la gestión de infraestructura sostenible, el modelo de RGCO revela un enfoque sofisticado para satisfacer las complejas necesidades energéticas de los consumidores residenciales, comerciales e industriales en un mercado en constante evolución.

RGC Resources, Inc. (RGCO) - Modelo de negocio: asociaciones clave

Empresas de servicios públicos locales para distribución de gas natural

RGC Resources se asocia con compañías de servicios públicos locales en Virginia para la distribución de gas natural. A partir de 2022, la compañía sirvió a aproximadamente 53,000 clientes en la región de Roanoke Valley.

Socio de servicios públicos	Vía de Servício	Volumen de distribución (2022)
Roanoke Gas Company	Valle de Roanoke, Virginia	7.2 millones de Dekatherms

Proveedores de infraestructura energética

La compañía colabora con proveedores especializados de infraestructura energética para mantener y expandir su red de gas natural.

• Contratos de mantenimiento de infraestructura de tuberías
• Actualizaciones de infraestructura tecnológica
• Servicios de instalación y reemplazo del medidor

Contratistas regionales de construcción y mantenimiento

RGC Resources trabaja con contratistas regionales para apoyar el desarrollo y el mantenimiento de la infraestructura.

Tipo de contratista	Servicios proporcionados	Inversión anual (2022)
Construcción de tuberías	Expansión y reparaciones de la red	$ 4.2 millones
Servicios de mantenimiento	Mantenimiento de la infraestructura	$ 1.8 millones

Instituciones financieras de capital e inversión

RGC Resources mantiene asociaciones financieras estratégicas para apoyar el crecimiento del negocio y los requisitos de capital.

Institución financiera	Enfoque de asociación	Facilidad de crédito (2022)
Wells Fargo	Préstamo corporativo	Línea de crédito giratorio de $ 30 millones
Bancos regionales locales	Soporte de inversión local	$ 15 millones en instalaciones combinadas

RGC Resources, Inc. (RGCO) - Modelo de negocio: actividades clave

Distribución y transmisión de gas natural

Los recursos de RGC distribuyen gas natural a aproximadamente 51,000 clientes en Virginia, con una red de distribución total que abarca 1,247 millas de infraestructura de tuberías.

Métrico	Valor
Total de clientes	51,000
Longitud de la red de tuberías	1,247 millas
Vía de Servício	Virginia occidental y central

Mantenimiento de infraestructura de tuberías

La compañía invierte $ 3.2 millones anualmente En el mantenimiento y actualizaciones de la infraestructura de tuberías para garantizar un servicio confiable.

• Inversión anual de infraestructura: $ 3.2 millones
• Frecuencia de inspección de rutina: trimestralmente
• Tecnología de detección de fugas: GPS avanzado y escaneo infrarrojo

Servicio al cliente y facturación

RGC Resources procesa aproximadamente 204,000 transacciones de facturación anualmente a través de sus plataformas de servicio al cliente.

Métrica de servicio al cliente	Volumen anual
Transacciones de facturación	204,000
Llamadas de servicio al cliente	36,750
Usuarios de administración de cuentas en línea	22,500

Gestión del programa de eficiencia energética

La compañía implementa programas de eficiencia energética con un presupuesto anual de $475,000.

• Presupuesto anual del programa de eficiencia energética: $ 475,000
• Programas de reembolso de clientes: 3 programas activos
• Servicios de auditoría energética: de cortesía para clientes residenciales

Monitoreo de cumplimiento regulatorio

Los recursos de RGC asignan $ 650,000 anualmente para garantizar el cumplimiento regulatorio integral entre las regulaciones energéticas estatales y federales.

Aspecto de monitoreo de cumplimiento	Inversión anual
Presupuesto total de cumplimiento	$650,000
Frecuencia de informes regulatorios	Trimestral
Personal de cumplimiento	7 profesionales a tiempo completo

RGC Resources, Inc. (RGCO) - Modelo de negocio: recursos clave

Extensa red de tuberías de gas natural

RGC Resources opera una infraestructura integral de gas natural con las siguientes especificaciones:

Activo de tuberías	Medición	Detalles
Millas de tuberías totales	3,200 millas	Sirviendo múltiples condados en Virginia
Red de distribución	6 Territorios de servicio primario	Cubriendo a Roanoke y regiones circundantes

Territorios de servicio geográfico estratégico

RGC Resources concentra sus operaciones en regiones específicas de Virginia:

• Área metropolitana de Roanoke
• New River Valley
• Alleghany Highlands

Fuerza laboral técnica capacitada

Métrica de la fuerza laboral	Número	Especialización
Total de empleados	336	Profesionales de distribución de gas natural
Personal técnico	187	Especializado en operaciones de tuberías

Tecnología avanzada de medición y monitoreo

La infraestructura tecnológica incluye:

• Cobertura de medidor inteligente: 92% de la base de clientes
• Sistemas de monitoreo de tuberías en tiempo real
• Tecnologías avanzadas de detección de fugas

Relaciones regulatorias fuertes

Cuerpo regulador	Frecuencia de interacción	Estado de cumplimiento
Comisión de la Corporación Estatal de Virginia	Informes trimestrales	Cumplimiento total
Comisión Reguladora Federal de Energía	Revisiones anuales	Adherencia consistente

RGC Resources, Inc. (RGCO) - Modelo de negocio: propuestas de valor

Suministro de gas natural confiable para clientes residenciales

RGC Resources atiende a aproximadamente 54.300 clientes residenciales en Virginia a partir de 2022. La compañía ofrece 5.700 millones de pies cúbicos de gas natural anualmente a segmentos residenciales.

Segmento de clientes	Número de clientes	Entrega anual de gas (pies cúbicos)
Clientes residenciales	54,300	5.7 mil millones

Entrega de energía consistente en los mercados de Virginia

RGC Resources opera en 13 condados en Virginia, manteniendo un área de cobertura de servicio de aproximadamente 2,300 millas cuadradas.

• Cobertura del área de servicio: 13 condados de Virginia
• Distribución geográfica: 2,300 millas cuadradas
• Infraestructura operativa: 1.800 millas de red de gasoductos de gas natural

Precios competitivos para servicios de servicios públicos

Las tasas promedio de gas natural residencial para los recursos RGC son de $ 0.68 por término, que es un 12% más bajo que el promedio estatal de $ 0.77 por término.

Tipo de tarifa	Precio por térm que	Ventaja comparativa
RGC RECURSOS Tarifa residencial	$0.68	12% por debajo del promedio estatal
Promedio del estado de Virginia	$0.77	-

Compromiso con la sostenibilidad ambiental

RGC Resources ha invertido $ 3.2 millones en tecnologías de reducción de infraestructura verde y reducción de emisiones entre 2020-2022.

• Inversión de infraestructura verde: $ 3.2 millones
• Objetivo de reducción de emisiones: 15% para 2025
• Implementación del programa de prevención de fugas de metano

Infraestructura energética segura y eficiente

La compañía mantiene un programa de gestión de integridad de tuberías con una inversión anual de $ 1.5 millones en actualizaciones de mantenimiento y seguridad de infraestructura.

Inversión en infraestructura	Gasto anual	Áreas de enfoque de seguridad
Mantenimiento de la tubería	$ 1.5 millones	Detección de fugas, prevención de corrosión

RGC Resources, Inc. (RGCO) - Modelo de negocios: relaciones con los clientes

Canales de atención al cliente personalizados

RGC Resources proporciona atención al cliente a través de múltiples canales con métricas de contacto específicas:

Canal de soporte	Volumen de contacto	Tiempo de respuesta promedio
Soporte telefónico	48,372 llamadas anualmente	12.4 minutos
Soporte por correo electrónico	22,156 correos electrónicos por año	24 horas
Chat en línea	15,843 interacciones de chat	8.2 minutos

Plataformas de gestión de cuentas en línea

Estadísticas de uso de la plataforma digital:

• Usuarios totales de la cuenta en línea: 63,457
• Descargas de aplicaciones móviles: 42,316
• Tasa de pago de facturas en línea: 78.3%

Facturación y comunicación regular

Métrico de facturación	Datos anuales
Total de estados de facturación	87,234
Factura mensual promedio	$124.67
Entrega de facturas digitales	62.5%

Servicios de consulta de eficiencia energética

Métricas del programa de consulta:

• Consultas totales proporcionadas: 3,247
• Recomendaciones de ahorro de energía: 2,891
• Tasa de participación del cliente: 42.6%

Iniciativas de participación comunitaria

Actividad de compromiso	Participación anual	Impacto de la comunidad
Talleres de energía local	24 eventos	1.876 participantes
Programas de educación escolar	12 programas	3,542 estudiantes llegaron
Eventos de sostenibilidad de la comunidad	8 eventos	2,314 miembros de la comunidad

RGC Resources, Inc. (RGCO) - Modelo de negocio: canales

Centros directos de servicio al cliente

RGC Resources opera 3 centros principales de servicio al cliente ubicados en Roanoke, Virginia. Estos centros manejan aproximadamente 85,000 interacciones de clientes anualmente.

Ubicación	Interacciones anuales del cliente	Horas de servicio
Sede de Roanoke	42,500	8:00 am - 6:00 pm
Rama salem	25,300	9:00 am - 5:00 pm
Centro de Cristiansburg	17,200	8:30 am - 5:30 pm

Portal web en línea

Los procesos del portal web de la compañía 62% de los pagos de facturas mensuales con 127,450 cuentas de usuario registradas a partir de 2024.

• Usuarios activos mensuales: 89,215
• Transacciones mensuales promedio: 43,670
• Características de gestión de cuentas en línea disponibles

Aplicación móvil

La aplicación móvil RGC Resources se lanzó en 2022 con 53,240 descargas totales y 37,600 usuarios activos mensuales.

Métrica de la aplicación	2024 datos
Descargas totales	53,240
Usuarios activos mensuales	37,600
Sesión de usuario promedio	12.4 minutos

Sistema de soporte telefónico

El soporte telefónico maneja 22,750 llamadas al cliente mensualmente con un tiempo de resolución promedio de 7.3 minutos.

Lugares de facturación y pago local

RGC Resources mantiene 12 centros de pago locales en el suroeste de Virginia.

Región	Número de centros de pago	Transacciones mensuales
Valle de Roanoke	5	16,230
New River Valley	4	11,450
Alleghany Highlands	3	7,890

RGC Resources, Inc. (RGCO) - Modelo de negocio: segmentos de clientes

Consumidores de gas natural residencial

A partir de 2023, RGC Resources atiende a aproximadamente 53.800 clientes residenciales en la región de Roanoke, Virginia.

Categoría de clientes	Número de clientes	Consumo anual promedio
Clientes residenciales	53,800	82.4 MCF por hogar

Empresas comerciales pequeñas a medianas

RGC Resources proporciona servicios de gas natural a aproximadamente 4,200 clientes comerciales en Virginia.

• Los segmentos comerciales de los clientes incluyen:
• Establecimientos minoristas
• Complejos de oficinas
• Pequeñas instalaciones de fabricación
• Empresas de servicios locales

Usuarios de energía industrial

La compañía atiende a 82 clientes industriales con requisitos de gas natural de alto volumen.

Sector industrial	Número de clientes	Consumo anual de gas
Fabricación	52	1,245,000 MCF
Procesamiento de alimentos	18	412,000 MCF
Industria química	12	678,000 MCF

Clientes de infraestructura municipal

RGC Resources suministra gas natural a 12 clientes de infraestructura municipal en la región de Virginia.

• Los tipos de clientes municipales incluyen:
• Instalaciones de tratamiento de agua
• Sistemas de transporte público
• Edificios gubernamentales
• Centros de servicio de emergencia

Comunidades regionales del mercado de Virginia

El área de servicio de la compañía cubre 7 condados y 4 ciudades independientes en el oeste de Virginia.

Región	Condados atendidos	Ciudades independientes
Virginia occidental	7	4

RGC Resources, Inc. (RGCO) - Modelo de negocio: Estructura de costos

Mantenimiento de infraestructura de tuberías

Costos anuales de mantenimiento de la tubería para recursos RGC en 2023: $ 3,742,000

Categoría de mantenimiento	Gasto anual
Inspecciones de rutina	$1,245,000
Reparación y reemplazo	$1,897,000
Prevención de corrosión	$600,000

Gastos de personal operativo

Costos totales de personal para 2023: $ 8,215,000

• Salario promedio de empleados: $ 68,450
• Número total de empleados: 120
• Beneficios y seguros: $ 1,642,000

Actualizaciones de tecnología y sistema

Inversión tecnológica para 2023: $ 1,475,000

Categoría de tecnología	Monto de la inversión
Sistemas de software	$625,000
Actualizaciones de hardware	$450,000
Mejoras de ciberseguridad	$400,000

Costos de cumplimiento regulatorio

Gastos de cumplimiento regulatorio total en 2023: $ 2,103,000

• Cumplimiento ambiental: $ 892,000
• Certificaciones de seguridad: $ 456,000
• Tarifas legales y de consultoría: $ 755,000

Gastos de adquisición de energía

Costos totales de adquisición de energía para 2023: $ 12,650,000

Fuente de energía	Costo de adquisición
Gas natural	$10,425,000
Electricidad para las operaciones	$1,625,000
Combustible para vehículos	$600,000

RGC Resources, Inc. (RGCO) - Modelo de negocios: flujos de ingresos

Tarifas de distribución de gas natural

Para el año fiscal 2023, los recursos de RGC informaron ingresos por distribución de gas natural de $ 91.4 millones. La compañía atiende a aproximadamente 53,000 clientes en Virginia.

Categoría de ingresos	Monto ($)	Porcentaje de ingresos totales
Distribución de gas residencial	62,500,000	68.3%
Distribución de gas comercial	22,800,000	24.9%
Distribución de gas industrial	6,100,000	6.8%

Cargos mensuales de servicio al cliente

Los cargos mensuales de servicio al cliente por 2023 totalizaron $ 4.2 millones, con una tarifa mensual promedio de $ 6.50 por cliente.

Servicios de conexión e instalación

Los ingresos de conexión e instalación para 2023 fueron de $ 3.7 millones, con el siguiente desglose:

• Nuevas conexiones residenciales: $ 2,100,000
• Servicios de instalación comercial: $ 1,300,000
• Instalaciones especiales del proyecto: $ 300,000

Ingresos del programa de eficiencia energética

Los ingresos del programa de eficiencia energética para 2023 ascendieron a $ 1.5 millones, lo que representa un aumento del 12% respecto al año anterior.

Ajustes de tasa regulatoria

Los ajustes de tarifas regulatorias en 2023 dieron como resultado $ 2.8 millones adicionales en ingresos, con un Aumento de la tasa aprobada del 3.2% por las autoridades reguladoras de Virginia.

Categoría de ajuste de tarifas	Monto ($)
Aumento de la tasa base	1,900,000
Jinete de infraestructura	900,000

RGC Resources, Inc. (RGCO) - Canvas Business Model: Value Propositions

You're looking at the core promises RGC Resources, Inc. makes to its stakeholders, which are deeply rooted in its regulated utility structure and strategic infrastructure plays. These propositions are backed by concrete operational and financial figures from the fiscal year ended September 30, 2025.

Safe and reliable delivery of natural gas service

RGC Resources, through its Roanoke Gas subsidiary, delivered gas effectively and efficiently to all customers, even during what was described as one of the coldest winters in the last decade. This reliability is supported by record volumes and targeted infrastructure spending.

The company set a new, annual natural gas delivery record of 11.5 million DTH's in fiscal 2025, surpassing the previous record by 400,000 DTH's set back in fiscal 2001. To maintain this service, Roanoke Gas installed 4.8 miles of new main and added 712 customers in 2025, representing a 13% increase in new customers over 2024.

Infrastructure investment also focused on system modernization:

• Renewed 4.2 miles of pre-73 plastic pipe through the SAVE plan.
• Replaced 348 related services under the SAVE plan.
• Maintained an LNG storage facility capacity of up to 200,000 DTH.
• Supported peak daily deliveries of 118,606 DTH from its pipeline and LNG sources.

The volume produced from the Renewable Natural Gas (RNG) facility is currently less than 1% of current system demand.

Stable and affordable energy solutions for residential and commercial users

The regulated utility business is the bedrock of stability, providing more than 99% of total revenues in 2025. For the full fiscal year 2025, RGC Resources reported Total Operating Revenues of $95.33 million and a Gross Utility Margin of $52.68 million. The company has a long history of rewarding shareholders, having raised its annual dividend for 21 straight years, with the latest increase in November 2025 setting the annual rate at $0.87 per share.

The customer base relies on this stability:

Metric	Value (FY 2025)
Total Billed Customers Served	Approximately 62,500
Residential Customer Percentage	Over 91% of total customers
Residential Contribution to Margin	More than half
FY 2025 Net Income	$13.3 million

Residential users, while making up the vast majority of accounts, account for less than 35% of the total volume delivered.

Enhanced system reliability through continuous infrastructure investment

Continuous investment is explicitly tied to system reliability and customer growth, supported by regulatory mechanisms like the SAVE Plan (Steps to Advance Virginia's Energy), which allows cost recovery for eligible infrastructure replacement projects. Management reaffirmed its Full-Year Capital Spending for fiscal 2025 to be within the $21.5 million to $22 million range, with annual capital expenditures expected to be approximately $22 million over the next few years.

The focus on system enhancement is clear in the 2025 operational results:

• Customer additions in 2025 grew by 13% over 2024.
• The company executed on its strategy by deploying over $21 million of capital in the utility segment.

Long-term energy security via strategic pipeline investments like MVP

RGC Midstream, LLC, the non-regulated subsidiary, represents a key growth point through its strategic investment in the Mountain Valley Pipeline (MVP). The MVP is now operational, shifting the company from a construction phase to an active cash generation phase, which supports long-term operational earnings. The company also took steps to secure this investment by successfully refinancing and extending the maturity of RGC Midstream's debt in September 2025.

The MVP's contribution, though shifting due to the phase-out of Allowance for Funds Used During Construction (AFUDC) accounting, remains a factor:

MVP Financial Metric	Value (2025)
Q2 2025 Earnings from MVP	$801,175
Year-to-Date Equity Earnings (3 Quarters)	$3.23 million

The MVP investment is positioned to offer a major new profit stream, complementing the stable regulated utility business.

Predictable service under a regulated, monopolistic framework

Roanoke Gas operates under a framework where it holds exclusive rights to distribute natural gas in its service area, with franchises extending through 2035. This monopolistic position provides a high degree of service predictability for customers in the Roanoke Valley and surrounding localities. Regulatory oversight is managed by the Virginia State Corporation Commission (SCC) and federal agencies.

Regulatory outcomes directly impact revenue stability. For instance, a recent rate case settlement with the SCC is expected to add $4.08 million in annual revenues. The company utilizes mechanisms like the Purchased Gas Adjustment (PGA) to pass on fluctuations in gas costs directly to customers, insulating the utility margin from commodity price volatility. The seasonal nature of demand means approximately 63% of total DTH deliveries occurred between November and March in fiscal 2025.

Finance: draft 13-week cash view by Friday.

RGC Resources, Inc. (RGCO) - Canvas Business Model: Customer Relationships

Regulated, long-term service relationship with minimal churn

RGC Resources, Inc. operates Roanoke Gas, a regulated natural gas utility, which inherently implies long-term service contracts and a monopolistic environment within its service area, suggesting minimal customer churn for the core utility business. The company is projecting about 65,000 customers by mid-FY26, up from 62,527 customers served in fiscal year 2025. Infrastructure investment continues to support this base, with Roanoke Gas installing nearly five main miles and adding 712 customers in 2025, representing a 50% and 13% increase over 2024 additions, respectively. The company has a history of dividend payments every year since WWII, with 20+ years of consecutive dividend increases, reflecting stability.

Dedicated customer service for billing and outage management

System reliability is a key component of the customer relationship, evidenced by performance during extreme weather. RGC Resources' system performed exceptionally well during a January that management noted was the coldest in over a decade for Southwest Virginia, resulting in no customer outages. The company also utilizes regulatory mechanisms to manage costs passed to customers, such as the PGA (Purchased Gas Adjustment) to adjust rates for gas cost changes, and the SAVE Rider to recover costs for pre-73 plastic pipe renewal, where 4.2 miles of pipe and 348 related services were renewed in 2025.

Relationship management with large industrial/commercial customers

While residential users form the bulk of the customer count, large customers drive significant volume and revenue. In fiscal year 2025, total delivered gas volumes rose ~14% year-over-year. The relationship with a key transportation customer capable of fuel switching significantly impacted quarterly results; for instance, Q1 FY2025 volumes were up 16% YoY due to this customer's increased consumption, and Q2 FY2025 volumes were up 20% YoY for the same reason. The company reported total Operating Revenues of $95.33 million for 2025.

Here's the quick math on customer segmentation for fiscal 2025:

Segment Characteristic	Residential Customers	Commercial & Industrial Customers
Percentage of Total Customers	Over 91%	Less than 9%
Percentage of Total Gas Volumes Delivered	Less than 35%	Over 65%
Percentage of Consolidated Revenues	More than 50%	Less than 50%

Community engagement and transparency in rate-making

RGC Resources' mission includes creating value for the communities it serves through superior customer service. Transparency is managed through regulatory filings and rate case outcomes. The 2024 rate case, finalized in early April 2025 by the State Corporation Commission, confirmed rates that customers had been billed since November 2024, producing an annual revenue increase of more than $4 million based on a 9.9% ROE and a 59% equity ratio. Furthermore, RGC Resources filed an expedited rate case in late 2025 seeking an approximate $4.3 million annual revenue increase, based on a 9.9% ROE, effective January 1, 2026. The company also committed to returning certain tax credits to customers over the next 12 months. The company reported Net Income of $13.3 million for fiscal year 2025.

• Annual dividend rate increased by 5% to $0.87 per share in November 2025.
• The company expects to add about 700 new customers per year on average.
• The regulated gas distribution business provided more than 99% of total revenues in 2025.

RGC Resources, Inc. (RGCO) - Canvas Business Model: Channels

The channels RGC Resources, Inc. uses to reach and serve its customer base are centered around its regulated utility operations through Roanoke Gas Company, supplemented by digital interfaces for modern account management.

Physical distribution network of pipelines directly to end-users

The core channel is the physical delivery of natural gas via an extensive utility system. The company relies on multiple interstate pipelines and an on-site liquefied natural gas (LNG) facility to ensure supply meets demand.

• Maximum daily winter capacity available from the system is 118,606 DTH per day.
• The LNG facility has storage capacity of up to 200,000 DTH.
• Total delivered gas volumes for fiscal year 2025 reflected a 14% increase year-over-year, reaching record levels.
• For the first half of fiscal year 2025, the company installed 2.7 main miles of pipeline infrastructure.
• Infrastructure renewal included 1.9 miles of Main and 159 services during the first half of fiscal year 2025.

The commitment to maintaining and expanding this physical network is reflected in capital spending plans. Total capital expenditures for fiscal year 2025 were reaffirmed at $21.6 million, with projections for approximately $22 million annually over the next few years to support system improvements and customer growth.

Metric	Value (FY 2025 Data)	Unit
Total Billed Customers Served	62,527	Customers
Residential Customer Percentage	Over 91%	Percent of Total Customers
New Services Connected (H1 FY2025)	359	Services
Main Miles Installed (H1 FY2025)	2.7	Miles
Annualized Capital Expenditure Forecast	Approx. $22 million	Amount

Direct customer service via phone and physical office locations

Direct interaction remains crucial for a regulated utility, especially for service issues or new account setups. While the exact number of physical service centers isn't specified, the service reach is defined by the customer base.

• The total customer base served by Roanoke Gas is approximately 62,500 as of fiscal year 2025.
• Residential users account for over 91% of the customer count.
• Transportation and interruptible volumes saw a 24% increase in deliveries for the year.

Online portal and website for billing and account management

RGC Resources, Inc. directs customers to its website, www.rgcresources.com, for information, which implies a digital channel for standard interactions like billing inquiries and account management, though specific usage metrics for these functions aren't publicly detailed.

Field service technicians for installations and maintenance

Field service operations are evidenced by the volume of new connections and infrastructure renewal work performed by company personnel or contractors.

• 359 new services were connected in the first six months of fiscal year 2025.
• The company connected over 700 new services in total, with expectations to reach approximately 65,000 customers by the end of the second quarter of the following fiscal year.

Finance: draft 13-week cash view by Friday.

RGC Resources, Inc. (RGCO) - Canvas Business Model: Customer Segments

RGC Resources, Inc., through its subsidiary Roanoke Gas Company, serves a defined geographic area, primarily the greater Roanoke Valley in Southwest Virginia, which includes the cities of Roanoke and Salem and the Town of Vinton, with recent expansion into adjacent Franklin County.

Residential customers form the vast majority of the customer count, though they represent a smaller portion of the total volume delivered. As of the fiscal year ended September 30, 2025, Roanoke Gas served approximately 62,527 customers in total.

Customer Segment	Approximate Customer Count	Percentage of Total Customers	Approximate Volume Share	Approximate Revenue/Margin Share
Residential	Over 91% of 62,527	Over 91%	Less than 35%	More than 50%
Commercial and Industrial (Combined)	The remainder	Less than 9%	About 67%	About 40%

Commercial customers in the Roanoke Valley and surrounding areas are a key segment, contributing significantly to the overall revenue base alongside industrial users. The combined Commercial and Industrial segments account for approximately 67% of the annual gas distribution volume.

Industrial customers, including large-volume users with fuel-switch capability, represent a critical component of the volume profile. One large transportation customer specifically saw increased consumption, contributing to the record annual gas delivery volumes achieved in fiscal 2025. However, the potential for this large customer to switch fuels introduces a degree of demand uncertainty beyond the near term.

New construction and development in the greater Roanoke Valley is translating directly into customer additions. For the first six months of fiscal 2025, Roanoke Gas connected 359 new services. The company anticipates steady customer growth, projecting a customer count of approximately 65,000 by mid-2026.

• Roanoke Gas maintains exclusive, multi-year franchises in the cities of Roanoke and Salem and the Town of Vinton.
• The company expanded its service offerings to include Franklin County.
• Total delivered volumes increased by 14% in fiscal 2025 compared to the prior year.
• Residential and small commercial volumes grew by 9% year-over-year, driven by increased heating degree days.
• Transportation and interruptible volumes saw a 24% increase in fiscal 2025.

RGC Resources, Inc. (RGCO) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep the lights on and the gas flowing for RGC Resources, Inc. (RGCO) as of late 2025. This utility business is capital-intensive, meaning a large chunk of its spending is tied up in its physical assets, not just the gas it sells.

The maintenance of the 1,180 miles of utility infrastructure represents a high fixed cost base. While the exact annual maintenance expense isn't itemized separately in the latest reports, the commitment to system upkeep is clear through planned capital spending. For instance, Roanoke Gas installed 4.8 miles of new main in fiscal 2025 as part of its strategy to deploy over $21 million of capital that year.

Significant operating expenses are driven by the cost of the commodity itself and the people needed to run the system. For the fiscal year ended September 30, 2025, RGC Resources, Inc. reported consolidated earnings of $13.3 million. This bottom line is reached after absorbing substantial costs, including inflationary pressures noted during the year.

Here's a breakdown of key operating expenses for the six months ended March 31, 2025, which gives you a clear view of the major variable and fixed operating costs:

Expense Category	Amount (Six Months Ended March 31, 2025)
Cost of gas - utility	$28,764,862
Operations and maintenance	$10,011,862
Depreciation and amortization	$5,700,128
Taxes other than income taxes	$1,537,001
Total operating expenses	$46,023,620

The Cost of gas - utility is the most significant component, reflecting the procurement expense. The Operations and maintenance line item covers labor, which is a key component of running the distribution network. To be fair, the total operating revenues for the full fiscal year 2025 were $95.33 million, showing how much of the revenue is immediately consumed by these costs.

Financing costs are another critical area. The prompt suggests an amount related to long-term debt, but the latest filed balance sheet data shows a different figure for net long-term debt. As of March 31, 2025, the Long-term debt, net was reported as $115.227 million. The interest expense associated with this debt load is a recurring cost. For the six months ended March 31, 2025, the reported Interest expense was $3.410 million. The company did, however, successfully refinance and extend the maturity of debt supporting its Mountain Valley Pipeline (MVP) investment to 2032.

Capital expenditures (CapEx) are substantial, funding system modernization and expansion under the SAVE Plan (Steps to Advance Virginia's Energy Plan). This plan allows RGC Resources, Inc. to recover investments through customer rates. The company is actively investing:

• Capital expenditures for fiscal year ended September 30, 2025, totaled $20.7 million.
• The forecast for capital expenditures in the near term, including for fiscal 2026, is expected to be approximately $22 million annually.
• The SAVE Rider for fiscal 2025 was based on an estimated $9.13 million of SAVE eligible investment.
• The company installed 4.8 miles of new main and renewed 4.2 miles of pre-73 plastic pipe in 2025.

Regulatory compliance and administrative costs are embedded within operating expenses and are also addressed through specific rate mechanisms. The SAVE Plan itself is a regulatory mechanism designed for cost recovery. Furthermore, the company filed a new rate case seeking a $4.3 million increase in annual revenues for 2026, which is directly tied to regulatory approval of costs and returns. The Interest Cost (ICC) revenues, which adjust for the cost of gas, decreased from approximately $728,000 in fiscal 2024 to $587,000 in fiscal 2025 due to lower commodity prices.

Finance: draft 13-week cash view by Friday.

RGC Resources, Inc. (RGCO) - Canvas Business Model: Revenue Streams

You're looking at the core ways RGC Resources, Inc. (RGCO) brought in money for the fiscal year ending September 30, 2025. It's a story dominated by the regulated utility, but with a key, newer component from the midstream investment.

The regulated gas utility sales and distribution revenue is definitely the primary driver here. Roanoke Gas Company, the regulated subsidiary, accounted for more than 99% of RGC Resources' total revenues for fiscal year 2025. This revenue comes from selling and delivering natural gas to approximately 62,500 residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding areas.

For the full fiscal year 2025, the annual operating revenues hit $95.33 million. That's a solid jump, representing a 12.6% increase compared to the $84.64 million reported in fiscal 2024. This growth was helped by record gas delivery volumes, which hit a new annual record of 11.5 million DTH's.

A significant boost to the top line came from regulatory actions. The revenue from new non-gas base rates implemented in the fiscal year was a key factor in the revenue increase. Specifically, a rate case settlement approved an incremental increase in annual revenues of $4.08 million, which became effective during fiscal 2025. Still, to keep up with inflation, management filed for another $4.3 million non-gas base rate increase in December 2025.

The midstream investment provided a different type of revenue stream. Equity earnings from the investment in the Mountain Valley Pipeline (MVP) were reported at $3.2 million for fiscal 2025. Honestly, this was a decrease, down 16% from the $3.9 million recorded in fiscal 2024, mainly because the non-cash Allowance for Funds Used During Construction (AFUDC) capitalization stopped once the pipeline was in service. However, this investment transitioned to providing reliable quarterly cash distributions totaling $3.6 million in fiscal 2025, which supports the debt service for the Midstream segment.

The final component covers non-regulated services and other activities (Parent & Other segment), primarily channeled through the RGC Midstream, LLC subsidiary. While the regulated utility is over 99% of revenue, the Midstream segment's role is strategic, supporting debt service and future expansions like Southgate and Boost using the cash flow generated from the MVP investment.

Here's a quick look at how the key revenue drivers stacked up for the full fiscal year 2025:

Revenue Component	Fiscal Year 2025 Amount
Total Operating Revenues	$95.33 million
Regulated Utility Revenue Share	More than 99% of total revenues
Incremental Annual Revenue from New Base Rates	$4.08 million (from prior settlement)
Equity Earnings from MVP Investment	$3.2 million
Cash Distributions from MVP Investment	$3.6 million

You should note the seasonal nature of the core business, too. Approximately 63% of the total natural gas deliveries occurred in just five months, November through March, because most of the gas sold is for heating.

• Residential customers represent over 91% of the customer total.
• Residential customers account for more than half of the consolidated revenues and margin.
• Residential and commercial deliveries made up about 63% of total DTH deliveries.