RGC Resources, Inc. (RGCO): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique de RGC Resources, Inc. (RGCO), une entreprise de distribution de gaz naturel dynamique qui transforme les infrastructures énergétiques à travers le paysage de Virginie. En fabriquant méticuleusement une toile complète du modèle commercial, ce fournisseur d'innovations innovants montre comment les partenariats stratégiques, la technologie de pointe et les approches centrées sur le client peuvent révolutionner la prestation régionale d'énergie. De l'approvisionnement en gaz fiable à la gestion durable des infrastructures, le modèle de RGCO révèle une approche sophistiquée pour répondre aux besoins énergétiques complexes des consommateurs résidentiels, commerciaux et industriels dans un marché en constante évolution.

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: partenariats clés

Compagnies de services publics locaux pour la distribution du gaz naturel

RGC Resources s'associe à des sociétés de services publics locales en Virginie pour la distribution du gaz naturel. En 2022, la société a servi environ 53 000 clients dans la région de Roanoke Valley.

Partenaire public	Aire de service	Volume de distribution (2022)
Roanoke Gas Company	Roanoke Valley, Virginie	7,2 millions de dékatherms

Fournisseurs d'infrastructures énergétiques

La société collabore avec des fournisseurs d'infrastructures énergétiques spécialisés pour maintenir et étendre son réseau de gaz naturel.

• Contrats de maintenance des infrastructures de pipeline
• Mises à niveau des infrastructures technologiques
• Services d'installation et de remplacement du compteur

Entrepreneurs régionaux de construction et d'entretien

RGC Resources travaille avec des entrepreneurs régionaux pour soutenir le développement et la maintenance des infrastructures.

Type entrepreneur	Services fournis	Investissement annuel (2022)
Construction de pipeline	Expansion et réparations du réseau	4,2 millions de dollars
Services de maintenance	Entretien des infrastructures	1,8 million de dollars

Institutions financières pour le capital et l'investissement

RGC Resources maintient des partenariats financiers stratégiques pour soutenir la croissance des entreprises et les exigences de capital.

Institution financière	Focus de partenariat	Facilité de crédit (2022)
Wells Fargo	Prêts aux entreprises	Ligne de crédit renouvelable de 30 millions de dollars
Banques régionales locales	Aide à l'investissement local	15 millions de dollars en installations combinées

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: activités clés

Distribution et transmission du gaz naturel

RGC Resources distribue du gaz naturel à environ 51 000 clients à travers la Virginie, avec un réseau de distribution total couvrant 1 247 miles d'infrastructure de pipeline.

Métrique	Valeur
Total des clients	51,000
Longueur du réseau de pipeline	1 247 miles
Aire de service	Virginie occidentale et centrale

Maintenance des infrastructures de pipeline

L'entreprise investit 3,2 millions de dollars par an Dans la maintenance et les mises à niveau des infrastructures de pipeline pour assurer un service fiable.

• Investissement annuel sur les infrastructures: 3,2 millions de dollars
• Fréquence d'inspection de routine: trimestriel
• Technologie de détection des fuites: GPS avancé et numérisation infrarouge

Service client et facturation

RGC Resources traite environ 204 000 transactions de facturation par an via ses plateformes de service client.

Métrique du service client	Volume annuel
Transactions de facturation	204,000
Appels de service à la clientèle	36,750
Utilisateurs de gestion des comptes en ligne	22,500

Gestion du programme d'efficacité énergétique

La société met en œuvre des programmes d'efficacité énergétique avec un budget annuel de $475,000.

• Budget du programme d'efficacité énergétique annuelle: 475 000 $
• Programmes de remise des clients: 3 programmes actifs
• Services d'audit énergétique: complémentaires pour les clients résidentiels

Surveillance de la conformité réglementaire

RGC Resources alloue 650 000 $ par an pour garantir une conformité réglementaire complète entre les réglementations énergétiques des États et fédérales.

Aspect de surveillance de la conformité	Investissement annuel
Budget total de conformité	$650,000
Fréquence de rapport réglementaire	Trimestriel
Personnel de conformité	7 professionnels à temps plein

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: Ressources clés

Réseau de gazoducs naturel

RGC Resources exploite une infrastructure de gaz naturel complète avec les spécifications suivantes:

Actif de pipeline	Mesures	Détails
Total des miles de pipeline	3 200 miles	Servir plusieurs comtés en Virginie
Réseau de distribution	6 territoires de service primaires	Couvrant Roanoke et les régions environnantes

Territoires de services géographiques stratégiques

RGC Resources concentre ses opérations dans des régions spécifiques de Virginie:

• Région métropolitaine de Roanoke
• New River Valley
• Alleghany Highlands

Main-d'œuvre technique formée

Métrique de la main-d'œuvre	Nombre	Spécialisation
Total des employés	336	Professionnels de la distribution de gaz naturel
Personnel technique	187	Spécialisé dans les opérations de pipeline

Technologie avancée de mesure et de surveillance

L'infrastructure technologique comprend:

• Couverture de compteur intelligent: 92% de la clientèle
• Systèmes de surveillance des pipelines en temps réel
• Technologies de détection de fuite avancées

De fortes relations réglementaires

Corps réglementaire	Fréquence d'interaction	Statut de conformité
Commission de Virginia State Corporation	Reportage trimestriel	Compliance complète
Commission de réglementation de l'énergie fédérale	Revues annuelles	Adhésion cohérente

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: propositions de valeur

Alimentation fiable en gaz naturel pour les clients résidentiels

RGC Resources dessert environ 54 300 clients résidentiels en Virginie à partir de 2022. La société délivre 5,7 milliards de pieds cubes de gaz naturel chaque année aux segments résidentiels.

Segment de clientèle	Nombre de clients	Livraison annuelle de gaz (pieds cubes)
Clients résidentiels	54,300	5,7 milliards

Livraison d'énergie cohérente sur les marchés de Virginie

RGC Resources opère dans 13 comtés en Virginie, maintenant une zone de couverture de service d'environ 2 300 miles carrés.

• Couverture de zone de service: 13 comtés de Virginie
• Distribution géographique: 2 300 miles carrés
• Infrastructure opérationnelle: 1 800 miles de réseau de gazoducs naturels

Prix ​​compétitifs pour les services publics

Les taux de gaz naturel résidentiel moyens pour les ressources RGC sont de 0,68 $ par therm, ce qui est de 12% inférieur à la moyenne de l'État de 0,77 $ par therm.

Type de tarif	Prix ​​par therme	Avantage comparatif
Tarif résidentiel des ressources RGC	$0.68	12% en dessous de la moyenne de l'État
Moyenne de l'État de Virginie	$0.77	-

Engagement envers la durabilité environnementale

RGC Resources a investi 3,2 millions de dollars dans les technologies de réduction des infrastructures vertes et des émissions entre 2020-2022.

• Investissement d'infrastructure verte: 3,2 millions de dollars
• Objectif de réduction des émissions: 15% d'ici 2025
• Mise en œuvre du programme de prévention des fuites de méthane

Infrastructure énergétique sûre et efficace

La Société maintient un programme de gestion de l'intégrité des pipelines avec un investissement annuel de 1,5 million de dollars de mises à niveau de la maintenance des infrastructures et de la sécurité.

Investissement en infrastructure	Dépenses annuelles	Zones de mise au point de sécurité
Maintenance des pipelines	1,5 million de dollars	Détection des fuites, prévention de la corrosion

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: relations avec les clients

Canaux de support client personnalisés

RGC Resources fournit un support client via plusieurs canaux avec des mesures de contact spécifiques:

Canal de support	Volume de contact	Temps de réponse moyen
Support téléphonique	48 372 appels chaque année	12,4 minutes
Assistance par e-mail	22 156 e-mails par an	24 heures
Chat en ligne	15 843 interactions de chat	8,2 minutes

Plateformes de gestion de compte en ligne

Statistiques d'utilisation de la plate-forme numérique:

• Utilisateurs totaux de compte en ligne: 63 457
• Téléchargements d'applications mobiles: 42 316
• Taux de paiement des factures en ligne: 78,3%

Facturation et communication régulières

Métrique de facturation	Données annuelles
Instructions totales de facturation	87,234
Facture mensuelle moyenne	$124.67
Livraison de factures numériques	62.5%

Services de consultation de l'efficacité énergétique

Métriques du programme de consultation:

• Consultations totales fournies: 3 247
• Recommandations d'économie d'énergie: 2 891
• Taux de participation au client: 42,6%

Initiatives d'engagement communautaire

Activité d'engagement	Participation annuelle	Impact communautaire
Ateliers d'énergie locaux	24 événements	1 876 participants
Programmes d'éducation scolaire	12 programmes	3 542 étudiants atteints
Événements de durabilité communautaire	8 événements	2 314 membres de la communauté

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: canaux

Centres de service à la clientèle directs

RGC Resources exploite 3 centres de service à la clientèle principaux situés à Roanoke, en Virginie. Ces centres gèrent environ 85 000 interactions clients par an.

Emplacement	Interactions annuelles du client	Heures de service
Siège social de Roanoke	42,500	8h00 - 18h00
Succursale de Salem	25,300	9h00 - 17h00
Centre de Christiansburg	17,200	8h30 - 17h30

Portail Web en ligne

Les processus de portail Web de l'entreprise 62% des paiements de factures mensuelles avec 127 450 comptes d'utilisateurs enregistrés en 2024.

• Utilisateurs actifs mensuels: 89 215
• Transactions mensuelles moyennes: 43 670
• Fonctionnalités de gestion des comptes en ligne disponibles

Application mobile

L'application mobile RGC Resources a été lancée en 2022 avec 53 240 téléchargements totaux et 37 600 utilisateurs actifs mensuels.

Métrique de l'application	2024 données
Téléchargements totaux	53,240
Utilisateurs actifs mensuels	37,600
Session utilisateur moyenne	12,4 minutes

Système de support téléphonique

Le support téléphonique gère 22 750 appels clients mensuellement avec un temps de résolution moyen de 7,3 minutes.

Emplacements locaux de facturation et de paiement

RGC Resources maintient 12 centres de paiement locaux dans le sud-ouest de la Virginie.

Région	Nombre de centres de paiement	Transactions mensuelles
Vallée de Roanoke	5	16,230
New River Valley	4	11,450
Alleghany Highlands	3	7,890

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: segments de clientèle

Consommateurs de gaz naturel résidentiel

En 2023, RGC Resources dessert environ 53 800 clients résidentiels dans la région de Roanoke, en Virginie.

Catégorie client	Nombre de clients	Consommation annuelle moyenne
Clients résidentiels	53,800	82,4 MCF par ménage

Petites et moyennes entreprises commerciales

RGC Resources fournit des services de gaz naturel à environ 4 200 clients commerciaux à travers la Virginie.

• Les segments commerciaux des clients comprennent:
• Établissements de vente au détail
• Complexes de bureaux
• Petites installations de fabrication
• Entreprises de services locaux

Utilisateurs d'énergie industrielle

L'entreprise dessert 82 clients industriels ayant des besoins en gaz naturel à volume élevé.

Secteur industriel	Nombre de clients	Consommation de gaz annuelle
Fabrication	52	1 245 000 MCF
Transformation des aliments	18	412 000 MCF
Industrie chimique	12	678 000 MCF

Clients de l'infrastructure municipale

RGC Resources fournit du gaz naturel à 12 clients d'infrastructures municipales dans la région de Virginie.

• Les types de clients municipaux comprennent:
• Installations de traitement de l'eau
• Systèmes de transport public
• Bâtiments du gouvernement
• Centres de services d'urgence

Communautés régionales du marché de Virginie

La zone de service de la société couvre 7 comtés et 4 villes indépendantes de la Virginie occidentale.

Région	Les comtés servis	Villes indépendantes
Virginie occidentale	7	4

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: Structure des coûts

Maintenance des infrastructures de pipeline

Coûts de maintenance annuelle du pipeline pour les ressources RGC en 2023: 3 742 000 $

Catégorie de maintenance	Dépenses annuelles
Inspections de routine	$1,245,000
Réparation et remplacement	$1,897,000
Prévention de la corrosion	$600,000

Dépenses du personnel opérationnel

Total des coûts du personnel pour 2023: 8 215 000 $

• Salaire moyen des employés: 68 450 $
• Nombre total d'employés: 120
• Avantages et assurance: 1 642 000 $

Mises à niveau de la technologie et du système

Investissement technologique pour 2023: 1 475 000 $

Catégorie de technologie	Montant d'investissement
Systèmes logiciels	$625,000
Mises à niveau matériel	$450,000
Améliorations de la cybersécurité	$400,000

Coûts de conformité réglementaire

Total des frais de conformité réglementaire en 2023: 2 103 000 $

• Conformité environnementale: 892 000 $
• Certifications de sécurité: 456 000 $
• Frais juridiques et de conseil: 755 000 $

Frais d'approvisionnement en énergie

Coût total d'approvisionnement en énergie pour 2023: 12 650 000 $

Source d'énergie	Coût d'approvisionnement
Gaz naturel	$10,425,000
Électricité pour les opérations	$1,625,000
Carburant pour les véhicules	$600,000

RGC Resources, Inc. (RGCO) - Modèle d'entreprise: Strots de revenus

Frais de distribution du gaz naturel

Pour l'exercice 2023, RGC Resources a rapporté des revenus de distribution de gaz naturel de 91,4 millions de dollars. La société dessert environ 53 000 clients à travers la Virginie.

Catégorie de revenus	Montant ($)	Pourcentage du total des revenus
Distribution de gaz résidentiel	62,500,000	68.3%
Distribution commerciale de gaz	22,800,000	24.9%
Distribution de gaz industriel	6,100,000	6.8%

Frais de service client mensuel

Les frais de service client mensuel pour 2023 ont totalisé 4,2 millions de dollars, avec des frais mensuels moyens de 6,50 $ par client.

Services de connexion et d'installation

Les revenus de connexion et d'installation pour 2023 étaient de 3,7 millions de dollars, avec la ventilation suivante:

• Nouvelles connexions résidentielles: 2 100 000 $
• Services d'installation commerciaux: 1 300 000 $
• Installations de projets spéciaux: 300 000 $

Revenus du programme d'efficacité énergétique

Les revenus du programme d'efficacité énergétique pour 2023 s'élevaient à 1,5 million de dollars, ce qui représente une augmentation de 12% par rapport à l'année précédente.

Ajustements réglementaires

Les ajustements réglementaires des taux en 2023 ont entraîné un chiffre d'affaires supplémentaire de 2,8 millions de dollars, avec un Augmentation des taux approuvés de 3,2% par les autorités réglementaires de Virginie.

Catégorie d'ajustement des taux	Montant ($)
Augmentation du taux de base	1,900,000
Cavalier d'infrastructure	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.