Rgc Resources Inc. · NASDAQ:RGCO
Rgc Resources — 2025 AGA Financial Forum
38 slides from Rgc Resources's conference presentation, May 19, 2025
Slide 1: 2025 AGA
2025 AGA May 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements The in this pr ion contain forward-looking that relate to future transactions, events or expectations. In addition, Resources may announce or publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, investments,
Slide 3: Agenda
Agenda Q About RGC Q Highlights since May 2024 Q Roanoke Gas Q RGC Midstream Q Financials and Capital Q Why invest in RGC?
Slide 4: About RGC Resources, Inc.
About RGC Resources, Inc. Publicly traded (Nasdaq: RGCO) utility holding company providing energy and related products and services through Roanoke Gas Company and RGC Midstream. Roanoke Gas, which began in 1883, provides safe, reliable natural gas service to more than 63,000 customers in the greate
Slide 5: Organizational Structure
Organizational Structure Regulated Non-Utility Roanoke Gas C1 Local Distribution Company (LDC), C Partner in Mountain Valley Pipeline located in Roanoke, VA (MVP) = 0.73% OC Founded in 1883 C Partner in MVP Southgate - 0.51%
Slide 6: Highlights since May 2024
Highlights since May 2024 U) Rate case reviewed and approved > $4.08M new revenue > 9.90% ROE > 59% Equity U) Stellar safety record and no system outages LJ MVP went into service June 14, 2024 UL) MVP cash flow to partners began October 2024 C) Providing gas to Franklin County, a first
Slide 7: Roanoke Gas
Roanoke Gas
Slide 8: Roanoke Gas Service Territory
Roanoke Gas Service Territory Q_ Serve more than 63,700 natural gas customers Q_ Customer count breakdown: > Residential 91% Roanoke Co. > cal 90% Mont. Co. Bedford co. Q_ Volume breakdown: > Residential 33% F : anki.
Slide 9: Roanoke Gas
Roanoke Gas Regulated In business since 1883 Q) VA State Corporation Commission (SCC) QO) 9.90% authorized ROE, with 59% equity Predictable, reliable, stable Q Alternative Cost Recovery Mechanisms >» Weather Normalization >» Revenue Sharing > > revenues Most recent rate Purchase Gas Adjustment (quar
Slide 10: Roanoke Gas RNG Facility
Roanoke Gas RNG Facilit U1 In service March 2023 O Co-located at water authority site U) Generating RIN credits O Rider
Slide 11: Roanoke Gas LNG Facility
Roanoke Gas LNG Facility UO) Operating since 1972 Q Within our distribution system U) Provides up to 25,000 Dths / day U Stability on coldest days
Slide 12: Roanoke Gas Top Customers
Roanoke Gas Top Customers Building Materials Manufacturin O ZTVTAN si ri S$) Stee! Dynamics: DY YOKOHAMA Metalsa General Shale (imco) de DNAX Healthcare TRIVIUM =iAttec LewisGale res Medical Coie | Higher Education HOLLINS Municipal Gap 18 ee ROANOKE LONOKE COUNTY VA
Slide 13: Customer Growth
Customer Growth 64,000 63,000 62,000 61,000 60,000 59,000 58,000 57,000 | 56,000 2011 202! 2012 2013-«2014-«2015- 2016. -«2017-«2018-—«2019 «20202021: 2022-«2023 2024
Slide 14: Volumes & Heating Degree Days
Volumes & Heating Degree Days _— 3,000 10 2,500 8 2,000 2 S6 = 1,500 4 1,000 2 500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F Mm Total Volumes (Dth) +——=Dth per HDD
Slide 15: YTD Gas Volumes
YTD Gas Volumes DTHs Delivered YTD 2025 MYTD 2024 3,500 3,000 3 2,500 3 2,000 i 1,500 1,000 500 Residential Commercial Industrial YTD 2025 vs YTD 2024 Total Volumes 18% Commercial & Industrial Volumes 22% Heating Degree Days 16%
Slide 16: Midstream
Cc Midstream ARGC Resources Company
Slide 17: RGC Midstream
RGC Midstream QO) 20-year shipper contracts began July 1, 2024 — stable revenue QO) Cash flow from MVP distributed to partners quarterly > =$3.4M to RGC Midstream in FY25 OC) Company uses equity method accounting » Records proportional share of earnings >» Amortizes into income a basis difference fr
Slide 18: Mountain Valley Pipeline
Mountain Valley Pipeline ; a Pennsylvania LZ. Maryland Le Ohio 4 Pipeline interconnection West 1) Compressor station Virginia Pipelines —— Mountain Valley Pipeline eee — Equitrans Midstream North ~~ Transcontinental Gas Pipeline Pi Carolina Other existing natural gas pipeline Virginia Roanoke Gas In
Slide 19: Mountain Valley Pipeline
Mountain Valley Pipeline Two Roanoke Gas interconnects on-line System stability for Roanoke gas Capacity improves region’s attractiveness for existing and new employers
Slide 20: LaFayette Gate Station
LaFayette Gate Station
Slide 21: Summit View Gate
Summit View Gate
Slide 22: Financials and Capital
Financials and Capital
Slide 23: Net Income by Year
Net Income by Year $15 $10 , 9 2020 2021 20: 2023 2024 -$5 -$10 mRoanoke Gas_ Midstream Midstream loss, including $42.2 million impairment
Slide 24: Consolidated Financial Results
Consolidated Financial Results For the periods ended March 31, (Presented in thousands, except per share data) | Three Months Ended Year to Date [2025 | 2024 2025 | 2024 _~—s*Y| Operating revenues S 36,462 $ 32,660 63,752 $ 57,079 Operating expenses 26,062 24,030 46,024 41,797 Operating income 10,40
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet As of March 31, (Presented in thousands) Assets Current assets § 25,778 $ 28,526 Utility property, net 267,560 254,140 Other non-current assets Total Assets Liabilities and Stockholders' Equity Current maturities of long-term debt s 26,600 $ 125 Other current liabilities 1
Slide 26: CapEx History
CapEx History 2020) 2021 2022 gor 2024 5-year cumulative totals: SAVE 3 50.9 Customer Growth & System Expansion 32.8 Utility Maintenance 20.3 RNG 8.6 MVP Growth 3.2 Total $ 115.8
Slide 27: Utility Plant Growth
Utility Plant Growth $300 $250 $200 a3 GS $150 Ce $100 $50 2011 2012 2013 2014 ©2015-2016 «2017 «2018 «2019 «2020-2021» 2022-«2023« 2024 --2025F Millions Bie
Slide 28: Equity and Debt Profile
Equity and Debt Profile Q Top shareholders: Q_ $230M Market Capitalization ic ae QQ Common shares issued and outstanding: > Vanguard Group 4% 10,322,218 > Blackrock 4% AERA? . > Columbia Threadneedle 4% Q $36.2M availability on equity shelf > Atthe market (ATM) OQ 6.8% insider ownership Remaining $1
Slide 29: Why Invest in RGC?
Why Invest in RGC?
Slide 30: Outlook and Shareholder Return
Outlook and Shareholder Return Q Growth Q Cap Ex Q EPS Q Dividends
Slide 31: Growth Strategy
Growth Strategy O) Regulated Utility > Fully earning — monitoring inflation > Continued investment in system infrastructure > Other RNG opportunities QO) Ongoing Regulated Utility Growth > Franklin County expansion >» Volumes delivered = Large industrial customer = Hospital expansion = Economic deve
Slide 32: Economic Development
Economic Development Q Regional Activity novonesis = QUALICHEM @ integer: @ Munters Q Broader Trends > Data centers and energy > MVP > Medical
Slide 33: CapEx Forecast 2025-2029
CapEx Forecast 2025-2029 $15.0 2025 2026 2027 2028 2029 MSAVE mCustomerGrowth m™Utility Maintenance ™ MVP Growth 5-year cumulative totals: SAVE (Authorized until 2028; 2029 would need approval) $47.8 Customer Growth & System Expansion $25.6 Utility Maintenance $25.7 MVP Growth $12.1 Total $111.2
Slide 34: Earnings Per Share
Earnings Per Share $1.30 $1.27 = Dividend $1.24 A = Payout Ratio: $1.18 = 65% $1.16 $1.12 68% $1.06 $1.00 2024 Actual 2025 Forecast MEPS @ Range
Slide 35: Earnings Per Share 2025
Earnings Per Share 2025 Q) Third Quarter QO) Fourth Quarter » Roanoke Gas » Roanoke Gas = Rates higher than a year = Rates equal ago = AMA Revenue Sharing = Asset management slightly lower agreement slightly lower = Rate case projections > RGC Midstream > RGC Midstream = AFUDC in Q3 last year = P&L
Slide 36: Shareholder Return: Dividends
Shareholder Return: Dividends $0.95 90.0% O 325 consecutive TTM March 31, 0.0% quarterly dividends 76.2% 0.83 70.0% (more than 80 $0.85 years) $0.75 QO) Annual dividend increase 21 consecutive years $0.65 $0.55 2021 2022 2023 2024 2025 @™Annual Dividend/Share —Payout Ratio * 2022 excludes non-cash i
Slide 37: Why Buy RGCO?
Why Buy RGCO? * Total Shareholder return of 476% since 2010 © 80+ years of consecutive dividend payments * 20+ years of consecutive dividend increases * Consistent regulatory environment * Prospective cost recovery mechanisms * Private shelf agreements to support debt capital needs © Natural gas has
Slide 38: BCC
BCC Mt ESOLUI'CES —— ad