RGC Resources Inc. · NASDAQ:RGCO
RGC Resources — Investor Presentation (September 2025)
39 slides from RGC Resources's investor presentation, Sep 8, 2025
Slide 1: Investor Update
September 8, 2025 Investor Update Roanoke, Virginia
Slide 2: Forward-Looking Statements
Forward-Looking Statements The statements in this presentation contain forward-looking statements 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, busin
Slide 3: Safety Moment
Safety Moment CARBON MONOXIDE POISONING -5 TO 5 PPM 5 TO 15 PPM Normal level in home Acceptable level near fumace National Institute for Occupational Safety and Health (NIOSH) has established a recommended exposure limit (REL) for carbon monoxide of 35 ppm as an 8-hour TWA and 200 ppmasa ceiling [NI
Slide 4: Agenda
Agenda ▪ Operational and Financial Highlights ▪ Roanoke Gas ▪ RGC Midstream ▪ Outlook ▪ Questions 3
Slide 5: Roanoke Gas
i Roanoke Gas
Slide 6: 2025 Operational Performance
2025 Operational Performance ▪ No system outages ▪ Delivered 1.9M DTH in January 2nd highest month ever ▪ On pace to deliver 11M+ DTH ▪ Installed 50% more main miles than fiscal 2024 ▪ Expect to add 700+ gross new services 5
Slide 7: Volumes & Heating Degree Days
Volumes & Heating Degree Days 12 3,500 3,000 10 2,500 8 2,000 Millions 6 1,500 4 1,000 2 500 - - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F Total Volumes (Dth) Dth per HDD 6
Slide 8: Customer Growth
Customer Growth 64,000 63,000 62,000 61,000 60,000 59,000 58,000 57,000 56,000 55,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F 7
Slide 9: Roanoke Gas Top Customers
Roanoke Gas Top Customers Building Materials Manufacturing Healthcare Higher Education Transportation Municipal 8
Slide 10: Capital Investment
Capital Investment $30 Low pressure, cast New five-year SAVE iron and bare steel program approved $25 replacement complete $20 Millions $15 $10 $5 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F SAVE Cap Ex 9
Slide 11: Rate Base
Rate Base $300 $250 $200 Millions $150 $100 $50 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F 10
Slide 12: Regulatory
Regulatory ▪ Rate case final order received in April ▪ $4.08M in new annual revenue ▪ 9.9% ROE on 59% equity ratio ▪ Positive staff reports on SAVE and RNG rider updates ▪ Pending approval would be effective October 1 ▪ Evaluating 2026 rate case 11
Slide 13: RRHA (2022 – 2025)
RRHA (2022 – 2025) ▪ $2.1M gross utility plant ▪ 5 properties ▪ 211 meters ▪ Enhanced safety ▪ Roanoke Gas owns and operates ▪ Master meters removed 12
Slide 14: Upcoming Projects
Upcoming Projects Eagle Valle Ranch Crossover * Flatwoods Crossover smi 9 3 3 4 v6 Hyde Park =P Hunting Hills
Slide 15: Regional Opportunities
Regional Opportunities La 5 BY r i Rocky Mount ‘3 o } >
Slide 16: Summit View Business Park
Summit View Business Park ▪ Stik-Pak Solutions ▪ Continuing economic development interest ▪ Near commercial and residential 15
Slide 17: Rocky Mount
Rocky Mount 16
Slide 18: Medical
Medical 17
Slide 19: Operational Training Center
Operational Training Center 18
Slide 20: A Culture of Continuous Learning
A Culture of Continuous Learning ✓ Root Cause Analysis 600+ hours ✓ Critical Thinking ✓ Change Management ✓ Culture of Accountability 25 employees ✓ Multimedia Best Practices ✓ Regulatory and Ratemaking Training Succession Planning 19
Slide 21: Q&A
Q&A 20
Slide 22: RGC Midstream
4 RGC Midstream
Slide 23: Mountain Valley Pipeline (MVP)
Mountain Valley Pipeline (MVP) ▪ In service June 14, 2024 with two interconnects ▪ System stability ▪ Capacity improves attractiveness for existing and new employers 22
Slide 24: The MVP played a crucial role in keeping the power on
The MVP played a “crucial role” in According to a keeping the comprehensive report by the Federal Energy power on in Regulatory Commission (FERC), Virginia, North along with the North American Electric Carolina, and Reliability Corp. South Carolina. 23
Slide 25: RGC Midstream, LLC
RGC Midstream, LLC ▪ Cash distributions for fiscal 2025 totaled $3.64M ▪ Expect Midstream to have a modest contribution to consolidated net income ▪ Two cash flow enhancement projects ▪ Southgate ▪ Boost (Expansion) ▪ Separate LOC facilities for capital investment in Southgate and Boost 24
Slide 26: MVP – New Projects
MVP – New Projects ▪ Southgate (2028) ▪ New pipeline from Station 165 into North Carolina ▪ 550M DTH/day capacity ▪ In design / permitting phase ▪ Boost (2029) ▪ Additional compression ▪ Increase capacity by Boost 0.5B DTH/day to 2.5B Southgate 25
Slide 27: Midstream Debt Refinancing
Midstream Debt Refinancing ▪ Refinanced all four Midstream loans totaling $53.6M into one new note ▪ Interest rate SOFR + 155bps ▪ Matures 2032 ▪ Amortize principal of ≈$711k / quarter beginning October 1, 2025 ▪ New interest rate swaps, in conjunction with existing swaps, yield an effective rate fo
Slide 28: Debt Profile
Debt Profile ▪ Remaining $120M on private shelf facilities ▪ Up to $30M availability on LOC facility – Matures March 2027 Long-term Debt Maturities September 8, 2024 $40 $35 $30 $25 $20 $15 $10 $5 $- 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Gas - Bank Gas - Private MidStream 27
Slide 29: Q&A
Q&A 28
Slide 30: Outlook
Outlook
Slide 31: Natural Gas Reserves
Natural Gas Reserves Source: US Energy Information Administration 30
Slide 32: Natural Gas: Fueling Data Centers
Natural Gas: Fueling Data Centers 31
Slide 33: 2026 Capital Forecast
2026 Capital Forecast SAVE & Renewals $ 10.5 Utility Upgrades 6.4 29% Customer Growth 4.9 & System 48% Expansion MVP Growth 2.8 MVP CAC (2.8) 23% Total $ 21.8 32
Slide 34: 2026 Drivers
2026 Drivers Helping Hurting ▪ $22M capital plan ▪ RRHA completion ▪ SAVE annual update ▪ Discount rate (pension ▪ System growth / post-retirement) ▪ Medical expansion ▪ Inflation ▪ Timing of rate case ▪ Interest ▪ Depreciation 33
Slide 35: Earnings Per Share
Earnings Per Share $1.30 $1.28 $1.27 $1.24 $0.06 $1.18 $1.16 $0.06 $1.12 $1.18 $1.06 $1.00 2024 Actual 2025 Forecast 2026 Preliminary Guidance EPS RRHA Impact Range 34
Slide 36: Stock Price and Dividends Per Share
Stock Price and Dividends Per Share $32.00 $0.90 $30.00 $0.85 $28.00 $0.80 $26.00 $0.75 Dividends per share $24.00 $0.70 Stock price $22.00 $0.65 $20.00 $0.60 $18.00 $0.55 $16.00 $14.00 $0.50 Share Price Dividends / share $12.00 $0.45 $10.00 $0.40 Data through August 29, 2025 35
Slide 37: Why Buy RGCO?
Why Buy RGCO? Demonstrated Track ▪ Total Shareholder return of 217% since 2010 Record of Delivering ▪ Dividend payments ever year since WWII (80+ years) ▪ 20+ years of consecutive dividend increases Shareholder Value ▪ Consistent regulatory environment Highly Stable ▪ Prospective cost recovery mecha
Slide 38: RGC Resources
RGC|Resources:
Slide 39: Consolidated Financial Results
Appendix Consolidated Financial Results For the periods ended June 30, (Presented in thousands, except per share data) Three Months Ended Year to Date 2025 2024 2025 2024 Operating revenues $ 17,265 $ 14,458 $ 81,016 $ 71,537 Operating expenses 16,068 12,901 62,092 54,698 Operating income 1,197 1,55
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