RGC Resources, Inc. (RGCO): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no plano estratégico da RGC Resources, Inc. (RGCO), uma empresa dinâmica de distribuição de gás natural que transforma a infraestrutura energética na paisagem da Virgínia. Ao elaborar meticulosamente uma tela abrangente do modelo de negócios, este inovador provedor de serviços públicos demonstra como parcerias estratégicas, tecnologia de ponta e abordagens centradas no cliente podem revolucionar a entrega regional de energia. Do suprimento confiável de gás a gerenciamento de infraestrutura sustentável, o modelo da RGCO revela uma abordagem sofisticada para atender às complexas necessidades energéticas de consumidores residenciais, comerciais e industriais em um mercado em constante evolução.

RGC Resources, Inc. (RGCO) - Modelo de negócios: Parcerias -chave

Empresas de serviços públicos locais para distribuição de gás natural

A RGC Resources faz parceria com empresas de serviços públicos locais na Virgínia para distribuição de gás natural. A partir de 2022, a empresa atendeu aproximadamente 53.000 clientes na região de Roanoke Valley.

Parceiro de utilidade	Área de serviço	Volume de distribuição (2022)
Roanoke Gas Company	Roanoke Valley, Virgínia	7,2 milhões de dekatherms

Provedores de infraestrutura de energia

A empresa colabora com provedores especializados de infraestrutura de energia para manter e expandir sua rede de gás natural.

• Contratos de manutenção de infraestrutura de pipeline
• Atualizações de infraestrutura tecnológica
• Serviços de instalação e substituição do medidor

Empreiteiros regionais de construção e manutenção

A RGC Resources trabalha com contratados regionais para apoiar o desenvolvimento e manutenção de infraestrutura.

Tipo de contratante	Serviços prestados	Investimento anual (2022)
Construção de oleodutos	Expansão e reparos de rede	US $ 4,2 milhões
Serviços de manutenção	Uportagem de infraestrutura	US $ 1,8 milhão

Instituições financeiras para capital e investimento

A RGC Resources mantém parcerias financeiras estratégicas para apoiar os requisitos de crescimento e capital dos negócios.

Instituição financeira	Foco em parceria	Linha de crédito (2022)
Wells Fargo	Empréstimos corporativos	Linha de crédito rotativo de US $ 30 milhões
Bancos regionais locais	Suporte de investimento local	US $ 15 milhões em instalações combinadas

RGC Resources, Inc. (RGCO) - Modelo de negócios: Atividades -chave

Distribuição e transmissão de gás natural

A RGC Resources distribui o gás natural para aproximadamente 51.000 clientes em toda a Virgínia, com uma rede total de distribuição, abrangendo 1.247 milhas de infraestrutura de pipeline.

Métrica	Valor
Total de clientes	51,000
Comprimento da rede de pipeline	1.247 milhas
Área de serviço	Virgínia ocidental e central

Manutenção da infraestrutura de pipeline

A empresa investe US $ 3,2 milhões anualmente na Manutenção e atualizações da infraestrutura do pipeline para garantir um serviço confiável.

• Investimento anual de infraestrutura: US $ 3,2 milhões
• Frequência de inspeção de rotina: trimestral
• Tecnologia de detecção de vazamentos: GPS avançado e digitalização infravermelha

Atendimento ao cliente e cobrança

A RGC Resources processa aproximadamente 204.000 transações de cobrança anualmente por meio de suas plataformas de atendimento ao cliente.

Métrica de atendimento ao cliente	Volume anual
Transações de cobrança	204,000
Chamadas de atendimento ao cliente	36,750
Usuários de gerenciamento de contas on -line	22,500

Gerenciamento do programa de eficiência energética

A empresa implementa programas de eficiência energética com um orçamento anual de $475,000.

• Programa anual de eficiência energética Orçamento: US $ 475.000
• Programas de desconto do cliente: 3 programas ativos
• Serviços de Auditoria Energética: Complementar para clientes residenciais

Monitoramento da conformidade regulatória

RGC Recursos alocam US $ 650.000 anualmente Garantir a conformidade regulatória abrangente entre os regulamentos estaduais e federais de energia.

Aspecto de monitoramento de conformidade	Investimento anual
Orçamento total de conformidade	$650,000
Frequência de relatórios regulatórios	Trimestral
Equipe de conformidade	7 profissionais em tempo integral

RGC Resources, Inc. (RGCO) - Modelo de negócios: Recursos -chave

Extensa rede de gasoduto de gás natural

A RGC Resources opera uma infraestrutura abrangente de gás natural com as seguintes especificações:

Ativo de pipeline	Medição	Detalhes
Miles totais de pipeline	3.200 milhas	Servindo vários condados da Virgínia
Rede de distribuição	6 territórios de serviço primário	Cobrindo Roanoke e regiões vizinhas

Territórios de serviço geográfico estratégico

RGC Resources concentra suas operações em regiões específicas da Virgínia:

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

Força de trabalho técnica treinada

Métrica da força de trabalho	Número	Especialização
Total de funcionários	336	Profissionais de distribuição de gás natural
Equipe técnica	187	Especializado em operações de pipeline

Tecnologia avançada de medição e monitoramento

A infraestrutura tecnológica inclui:

• Cobertura de medidor inteligente: 92% da base de clientes
• Sistemas de monitoramento de pipeline em tempo real
• Tecnologias avançadas de detecção de vazamentos

Fortes relações regulatórias

Órgão regulatório	Frequência de interação	Status de conformidade
Comissão da Corporação Estadual de Virginia	Relatórios trimestrais	Conformidade total
Comissão Federal de Regulamentação de Energia	Revisões anuais	Adesão consistente

RGC Resources, Inc. (RGCO) - Modelo de negócios: proposições de valor

Suprimento confiável de gás natural para clientes residenciais

A RGC Resources atende a aproximadamente 54.300 clientes residenciais na Virgínia a partir de 2022. A empresa oferece 5,7 bilhões de pés cúbicos de gás natural anualmente a segmentos residenciais.

Segmento de clientes	Número de clientes	Entrega anual de gás (pés cúbicos)
Clientes residenciais	54,300	5,7 bilhões

Entrega consistente de energia nos mercados da Virgínia

A RGC Resources opera em 13 municípios da Virgínia, mantendo uma área de cobertura de serviço de aproximadamente 2.300 milhas quadradas.

• Cobertura da área de serviço: 13 condados da Virgínia
• Distribuição geográfica: 2.300 milhas quadradas
• Infraestrutura operacional: 1.800 milhas de rede de gasoduto de gás natural

Preços competitivos para serviços de serviços públicos

As taxas médias de gás natural residencial para recursos de RGC são de US $ 0,68 por Therm, que é 12% menor que a média de estado de US $ 0,77 por Therm.

Tipo de taxa	Preço por Therm	Vantagem comparativa
RGC Resources Taxa Residencial	$0.68	12% abaixo da média estadual
Média do estado da Virgínia	$0.77	-

Compromisso com a sustentabilidade ambiental

A RGC Resources investiu US $ 3,2 milhões em tecnologias de redução de infraestrutura e emissões verdes entre 2020-2022.

• Investimento de infraestrutura verde: US $ 3,2 milhões
• Alvo de redução de emissões: 15% até 2025
• Implementação do programa de prevenção de vazamentos de metano

Infraestrutura energética segura e eficiente

A empresa mantém um programa de gerenciamento de integridade de pipeline com um investimento anual de US $ 1,5 milhão em atualizações de manutenção e segurança de infraestrutura.

Investimento de infraestrutura	Gastos anuais	Áreas de foco de segurança
Manutenção de pipeline	US $ 1,5 milhão	Detecção de vazamentos, prevenção de corrosão

RGC Resources, Inc. (RGCO) - Modelo de Negócios: Relacionamentos do Cliente

Canais de suporte ao cliente personalizados

RGC Resources fornece suporte ao cliente por meio de vários canais com métricas de contato específicas:

Canal de suporte	Volume de contato	Tempo médio de resposta
Suporte telefônico	48.372 liga anualmente	12,4 minutos
Suporte por e -mail	22.156 e -mails por ano	24 horas
Chat online	15.843 interações de bate -papo	8,2 minutos

Plataformas de gerenciamento de contas online

Estatísticas de uso da plataforma digital:

• Usuários totais de conta on -line: 63.457
• Downloads de aplicativos móveis: 42.316
• Taxa de pagamento da conta on -line: 78,3%

Cobrança e comunicação regular

Métrica de cobrança	Dados anuais
Declarações totais de cobrança	87,234
Conta mensal média	$124.67
Entrega da conta digital	62.5%

Serviços de consulta de eficiência energética

Métricas do Programa de Consulta:

• Total de consultas fornecidas: 3.247
• Recomendações de economia de energia: 2.891
• Taxa de participação do cliente: 42,6%

Iniciativas de engajamento da comunidade

Atividade de engajamento	Participação anual	Impacto da comunidade
Workshops de energia local	24 eventos	1.876 participantes
Programas de educação escolar	12 programas	3.542 alunos alcançaram
Eventos de sustentabilidade da comunidade	8 eventos	2.314 membros da comunidade

RGC Resources, Inc. (RGCO) - Modelo de Negócios: Canais

Centros diretos de atendimento ao cliente

A RGC Resources opera três centros de atendimento ao cliente, localizados em Roanoke, Virgínia. Esses centros lidam com aproximadamente 85.000 interações com os clientes anualmente.

Localização	Interações anuais do cliente	Horário de serviço
Sede de Roanoke	42,500	8:00 - 18:00
Ramo de Salem	25,300	9:00 - 17:00
Centro de Christiansburg	17,200	8:30 - 17:30

Portal da Web online

Os processos de portal da web da empresa 62% dos pagamentos mensais das contas com 127.450 contas de usuário registradas a partir de 2024.

• Usuários ativos mensais: 89.215
• Transações mensais médias: 43.670
• Recursos de gerenciamento de contas online disponíveis

Aplicativo móvel

RGC Resources Mobile App lançado em 2022 com 53.240 downloads totais e 37.600 usuários ativos mensais.

Métrica de aplicativo	2024 dados
Downloads totais	53,240
Usuários ativos mensais	37,600
Sessão média do usuário	12,4 minutos

Sistema de suporte telefônico

O suporte telefônico lida com 22.750 clientes liga mensalmente com um tempo médio de resolução de 7,3 minutos.

Locais de cobrança e pagamento local

A RGC Resources mantém 12 centros de pagamento locais no sudoeste da Virgínia.

Região	Número de centros de pagamento	Transações mensais
Roanoke Valley	5	16,230
New River Valley	4	11,450
Alleghany Highlands	3	7,890

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

Consumidores de gás natural residencial

A partir de 2023, a RGC Resources atende a aproximadamente 53.800 clientes residenciais na região de Roanoke, Virgínia.

Categoria de cliente	Número de clientes	Consumo médio anual
Clientes residenciais	53,800	82,4 MCF por família

Pequenas a médias empresas comerciais

A RGC Resources fornece serviços de gás natural para aproximadamente 4.200 clientes comerciais em toda a Virgínia.

• Os segmentos de clientes comerciais incluem:
• Estabelecimentos de varejo
• Complexos de escritório
• Pequenas instalações de fabricação
• Empresas de serviços locais

Usuários de energia industrial

A empresa atende 82 clientes industriais com requisitos de gás natural de alto volume.

Setor industrial	Número de clientes	Consumo anual de gás
Fabricação	52	1.245.000 MCF
Processamento de alimentos	18	412.000 MCF
Indústria química	12	678.000 MCF

Clientes de infraestrutura municipal

A RGC Resources fornece gás natural a 12 clientes de infraestrutura municipal na região da Virgínia.

• Os tipos de clientes municipais incluem:
• Instalações de tratamento de água
• Sistemas de transporte público
• Edifícios do governo
• Centros de Serviço de Emergência

Comunidades regionais do mercado da Virgínia

A área de serviço da empresa cobre 7 municípios e 4 cidades independentes no oeste da Virgínia.

Região	Condados servidos	Cidades independentes
Virgínia ocidental	7	4

RGC Resources, Inc. (RGCO) - Modelo de negócios: estrutura de custos

Manutenção da infraestrutura de pipeline

Custos anuais de manutenção de dutos para recursos RGC em 2023: US $ 3.742.000

Categoria de manutenção	Despesa anual
Inspeções de rotina	$1,245,000
Reparo e substituição	$1,897,000
Prevenção de corrosão	$600,000

Despesas de pessoal operacional

Total de custos de pessoal para 2023: US $ 8.215.000

• Salário médio de funcionários: US $ 68.450
• Número total de funcionários: 120
• Benefícios e seguro: US $ 1.642.000

Atualizações de tecnologia e sistema

Investimento de tecnologia para 2023: US $ 1.475.000

Categoria de tecnologia	Valor do investimento
Sistemas de software	$625,000
Atualizações de hardware	$450,000
Aprimoramentos de segurança cibernética	$400,000

Custos de conformidade regulatória

Despesas totais de conformidade regulatória em 2023: $ 2.103.000

• Conformidade ambiental: US $ 892.000
• Certificações de segurança: US $ 456.000
• Taxas legais e de consultoria: US $ 755.000

Despesas de aquisição de energia

Custos totais de aquisição de energia para 2023: US $ 12.650.000

Fonte de energia	Custo de compras
Gás natural	$10,425,000
Eletricidade para operações	$1,625,000
Combustível para veículos	$600,000

RGC Resources, Inc. (RGCO) - Modelo de negócios: fluxos de receita

Taxas de distribuição de gás natural

Para o ano fiscal de 2023, a RGC Resources reportou receitas de distribuição de gás natural de US $ 91,4 milhões. A empresa atende aproximadamente 53.000 clientes em toda a Virgínia.

Categoria de receita	Valor ($)	Porcentagem da receita total
Distribuição de gás residencial	62,500,000	68.3%
Distribuição comercial de gás	22,800,000	24.9%
Distribuição de gás industrial	6,100,000	6.8%

Cobranças mensais de atendimento ao cliente

As cobranças mensais de atendimento ao cliente por 2023 totalizaram US $ 4,2 milhões, com uma taxa média mensal de US $ 6,50 por cliente.

Serviços de conexão e instalação

A receita de conexão e instalação para 2023 foi de US $ 3,7 milhões, com a seguinte quebra:

• Novas conexões residenciais: US $ 2.100.000
• Serviços de instalação comercial: US $ 1.300.000
• Instalações especiais de projeto: US $ 300.000

Receitas do Programa de Eficiência Energética

As receitas do programa de eficiência energética para 2023 totalizaram US $ 1,5 milhão, representando um aumento de 12% em relação ao ano anterior.

Ajustes da taxa regulatória

Os ajustes da taxa regulatória em 2023 resultaram em um adicional de US $ 2,8 milhões em receita, com um 3,2% Aumento da taxa aprovada pelas autoridades regulatórias da Virgínia.

Categoria de ajuste de taxa	Valor ($)
Aumento da taxa básica	1,900,000
Rider de infraestrutura	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.