About RGC Resources

RGC Resources, Inc. operates as an energy services company. The company engages in the sale and distribution of natural gas. The company's wholly-owned subsidiary, Roanoke Gas Company (Roanoke Gas) is a natural gas utility, which distributes and sells natural gas to approximately 62,200 residential, commercial and industrial customers within its service areas in Roanoke, Virginia and the surrounding localities. The company's business is seasonal in nature as a majority of natural gas sales are for space heating during the winter season. Roanoke Gas is regulated by the SCC. RGC Midstream, LLC (Midstream) is a wholly owned subsidiary created primarily to invest in the Mountain Valley Pipeline project. Services Roanoke Gas maintains an integrated natural gas distribution system to deliver natural gas purchased from suppliers to residential, commercial and industrial users in its service territory. Roanoke Gas' regulated natural gas distribution business accounted for more than 99% of Resources total revenues for fiscal year ending September 30, 2023. The company's residential and commercial sales are primarily seasonal and subject to temperature sensitivity as the majority of the gas sold by Roanoke Gas to these customers is used for heating. For the fiscal year ended September 30, 2023, approximately 59% of the company's total DTH of natural gas deliveries and 71% of the residential and commercial deliveries were made in the five-month period of November through March. Roanoke Gas relies on multiple interstate pipelines, including those operated by Columbia Gas Transmission Corporation, LLC and Columbia Gulf Transmission Corporation, LLC (together Columbia), and East Tennessee Natural Gas, LLC (East Tennessee), Tennessee Gas Pipeline, Midwestern Gas Transmission Company and Saltville Gas Storage Company, LLC (Saltville), to transport natural gas from the production and storage fields to Roanoke Gas' distribution system. Roanoke Gas is served by two pipelines, Columbia and East Tennessee. Columbia historically has delivered more than 65% of the company's required gas supply, with East Tennessee delivering the remainder. The current pipeline and storage contracts expire at various times from calendar 2024 to 2028. The company anticipates being able to renew these contracts or enter into other contracts to meet customers' existing demand for natural gas. In March 2023, Roanoke Gas began operation of its RNG facility. The company manages its pipeline contracts and LNG facility in order to provide for sufficient capacity to meet the current natural gas demands of its customers. The maximum daily winter capacity available for delivery into Roanoke Gas' distribution system from the current interstate pipelines is 78,606 DTH (Decatherm) per day. The LNG facility is capable of storing up to 200,000 DTH of natural gas in a liquid state for use during peak demand. Combined, the pipelines and LNG facility may provide up to 103,606 DTH on a single winter day. The company contracts with Sequent Energy Management, L.P. to manage its pipeline transportation, storage rights, gas supply inventories and deliveries and serve as the primary supplier of natural gas for Roanoke Gas. Natural gas purchased under the asset management agreement is priced at indexed-based market prices as reported in major industry pricing publications. The current Sequent contract expires March 31, 2025. The company uses summer storage programs to supplement heating season gas supply requirements. The company has contracted for 2.4 million DTH of storage capacity from Columbia, Tennessee Gas Pipeline and Saltville in addition to the capacity available at its LNG facility. Properties The company has approximately 1,179 miles of transmission and distribution pipeline with transmission and distribution plant representing 90% of the total utility property investment. The transmission and distribution pipelines are located on or under public roads and highways or private property for which the company has obtained the legal authorization and rights to operate. Roanoke Gas owns and operates six metering stations through which it measures and regulates the gas being delivered by its suppliers. These stations are located at various points throughout the company's distribution system. Roanoke Gas also owns a liquefied natural gas storage facility located in its service territory that has the capacity to store up to 200,000 DTH of natural gas. Regulation At the federal level, the company is subject to pipeline safety regulations issued by the Department of Transportation's Pipeline and Hazardous Materials Safety Administration. At the state level, the SCC (Virginia State Corporation Commission) performs regulatory oversight, including the approval of rates and other charges for natural gas sold to customers, the approval of agreements between or among affiliated companies involving the provision of goods and services, pipeline safety and certain other corporate activities of the company, including mergers and acquisitions related to utility operations. History RGC Resources, Inc. was founded in 1883. The company was incorporated in 1998 in the state of Virginia.