RGC Resources, Inc.
- Open
- 25.52
- Day high
- 26.10
- Day low
- 24.48
- Prev close
- 26.54
- Volume
- 19K
- Mkt cap
- $255M
- P/E (TTM)
- 17.8
- EPS (TTM)
- $1.37
- P/B
- 2.1
- P/S
- 2.4
- Yield
- 4.36%
- Per share
- $0.86
- ▲Insiders net buying $1K over the last 3 months (6 open-market buys, 0 sales)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions mixed (13F)
RGC Resources, Inc. (RGCO) is a Utilities company listed on NASDAQ. The stock is up 19% over the past year. Over the trailing 3 months, insiders filed 6 open-market buys and 0 sales (SEC Form 4).
RGC Resources, Inc. (RGCO) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RGCO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $0.78 | $0.84 | +7.7% | $45M | +19.0% |
| Feb 5, 2026 | $0.79 | $0.47 | -40.5% | $30M | -20.8% |
| Nov 19, 2025 | $-0.05 | $-0.02 | +60.0% | $14M | -50.6% |
| May 1, 2024 | $0.65 | $0.63 | -3.1% | $33M | +133.3% |
| Nov 20, 2023 | $0.01 | $0.10 | +599.8% | $12M | -59.8% |
| Aug 3, 2023 | $-0.02 | $0.07 | +450.0% | $14M | -8.9% |
| May 5, 2023 | $0.58 | $0.64 | +10.3% | $38M | +18.8% |
| Feb 8, 2023 | $0.39 | $0.33 | -15.4% | $33M | +28.0% |
| Nov 16, 2022 | $-0.08 | $-0.01 | +87.5% | $14M | +28.3% |
| May 5, 2022 | $0.66 | $0.60 | -9.1% | $30M | -1.6% |
| Feb 7, 2022 | $0.54 | $0.43 | -20.4% | $23M | +10.8% |
| Nov 15, 2021 | $-0.11 | $0.00 | +100.1% | $13M | -36.4% |
RGCO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | McClanahan Elizabeth Adirector | Grant | 86 | $24.27 |
| Jul 2, 2026 | Ellett Frank Russelldirector | Grant | 216 | $24.27 |
| Jul 2, 2026 | BOXLEY ABNEY S IIIdirector | Grant | 278 | $24.27 |
| Jul 2, 2026 | Oliver Lawrence T.officer: Senior VP and Secretary | Buy | 12 | $24.27 |
| Jul 2, 2026 | Archer Jacqueline L.director | Grant | 233 | $24.27 |
| Jul 2, 2026 | Miles Christen Brookeofficer: VP, Human Resources | Buy | 6 | $24.27 |
| Jul 2, 2026 | CRAWFORD THOMAS Jdirector | Grant | 110 | $24.27 |
| Jun 3, 2026 | McClanahan Elizabeth Adirector | Grant | 91 | $22.90 |
| Jun 3, 2026 | Archer Jacqueline L.director | Grant | 247 | $22.90 |
| Jun 3, 2026 | Oliver Lawrence T.officer: Senior VP and Secretary | Buy | 9 | $22.90 |
| Jun 3, 2026 | Ellett Frank Russelldirector | Grant | 229 | $22.90 |
| Jun 3, 2026 | BOXLEY ABNEY S IIIdirector | Grant | 295 | $22.90 |
| Jun 3, 2026 | Miles Christen Brookeofficer: VP, Human Resources | Buy | 4 | $22.90 |
| Jun 3, 2026 | CRAWFORD THOMAS Jdirector | Grant | 116 | $22.90 |
| May 5, 2026 | Oliver Lawrence T.officer: Senior VP and Secretary | Buy | 8 | $24.40 |
Source: RGCO SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full RGCO insider & 13F page →RGC Resources, Inc. company profile
Overview
RGC Resources, Inc. (NASDAQ:RGCO) is a regulated natural gas utility company founded in 1883 and headquartered in Roanoke, Virginia. The company has been publicly traded since 1994 and operates as a traditional regulated utility serving residential, commercial, and industrial customers in the Roanoke Valley and surrounding localities in southwestern Virginia. Through its primary subsidiary Roanoke Gas Company, RGC Resources distributes natural gas through approximately 1,157 miles of transmission and distribution pipeline infrastructure, serving over 63,000 customers across its service territory.
Business
RGC Resources operates primarily as a regulated natural gas distribution utility, which means it purchases natural gas from suppliers and delivers it to end customers through its pipeline network under rates and service standards approved by state regulators. The natural gas distribution industry serves as a critical link between natural gas production regions and end consumers, providing the infrastructure necessary to safely transport and deliver natural gas for heating, cooking, and industrial processes. The company's core business consists of two main segments. The regulated utility operations represent approximately 95% of total revenues and involve the distribution of natural gas to three customer classes: residential customers (primarily for home heating and cooking), commercial customers (including businesses, schools, and hospitals), and industrial customers (manufacturing facilities and large commercial operations). The company also operates unregulated services which include investments in pipeline projects and other energy-related activities, representing the remaining 5% of revenues. RGC Resources owns and operates critical infrastructure including a liquefied natural gas (LNG) storage facility that provides backup supply during peak demand periods, six metering stations that regulate gas pressure and flow, and an extensive pipeline network that connects to major interstate transmission systems. The company has recently completed interconnections with the Mountain Valley Pipeline (MVP), a major interstate natural gas pipeline that brings Marcellus Shale gas from West Virginia and Pennsylvania to markets in Virginia and North Carolina.
Revenue model
RGC Resources generates revenue primarily through regulated utility rate structures approved by the Virginia State Corporation Commission. The company earns money by charging customers for natural gas delivery services through monthly distribution charges, plus the cost of the natural gas commodity itself, which is passed through to customers at cost with no markup. The distribution charges are designed to recover the company's operating expenses, maintenance costs, depreciation, taxes, and provide a regulated return on invested capital. The company's customers pay monthly bills that include both the cost of natural gas (a pass-through commodity cost) and distribution charges (the company's revenue source). Residential customers typically represent the largest revenue segment, followed by commercial and industrial users. The business model is relatively stable due to regulatory oversight, but revenues fluctuate based on weather patterns, economic conditions, and natural gas commodity prices. Several factors can impact the company's margins and profitability. Weather normalization mechanisms help stabilize revenues during unusually warm winters when heating demand is low, while System Advancement and Voluntary Enhancement (SAVE) programs allow for accelerated recovery of infrastructure investments. Rising interest rates can pressure margins since utilities carry significant debt to finance infrastructure, while regulatory lag between filing rate cases and receiving approval can temporarily compress margins during inflationary periods. Competition from electric utilities promoting heat pumps and other electric heating alternatives could potentially reduce long-term demand growth, though natural gas generally maintains cost advantages for heating applications.
Competitive moat
RGC Resources operates with a strong regulatory moat typical of regulated utilities, though its geographic scope is relatively limited. The company holds exclusive franchises to provide natural gas service in its territories, creating legal barriers to competition. Regulatory oversight provides predictable returns on invested capital, typically in the 9-10% range for equity, while the essential nature of natural gas service creates relatively inelastic demand, particularly for heating in its Virginia service territory. However, the company's moat has some limitations. The small geographic footprint concentrated in southwestern Virginia limits growth opportunities and creates concentration risk around regional economic conditions. Unlike larger utilities with diverse service territories, RGC Resources cannot easily offset weakness in one market with strength in another. The company faces potential long-term challenges from electrification trends, as heat pumps and other electric alternatives become more efficient and cost-competitive, particularly if electricity rates remain stable while natural gas prices rise. The regulatory framework provides both protection and constraints - while it ensures cost recovery and reasonable returns, it also limits the company's ability to rapidly adjust pricing or pursue unregulated growth opportunities. The company's recent investments in pipeline interconnections, particularly with the Mountain Valley Pipeline, help strengthen its supply diversity and potentially reduce costs, but the overall competitive position remains that of a small regional utility in a mature market with limited expansion prospects.
Risks & safety
RGC Resources presents a moderate margin of safety with stable but leveraged financial metrics typical of regulated utilities. • Liquidity and Solvency: Current ratio of 0.57 indicates tight short-term liquidity, though this is common for utilities with predictable cash flows. The company maintains a $30 million credit facility and generates positive operating cash flow of approximately $21 million annually. • Debt Levels: Debt-to-equity ratio of 1.20 represents moderate leverage typical for utilities, though higher than some peers. Most debt is fixed-rate, providing protection against rising interest rates. • Valuation Metrics: Trading at 7.0x earnings and 6.1x EBITDA, suggesting reasonable valuation relative to growth prospects. Price-to-book ratio of 1.83 is near typical utility levels. • Other Considerations: Regulated utility status provides earnings stability, recent rate case approval supports near-term earnings, and dividend yield of approximately 3.9% appears sustainable based on current payout ratios.
Recent development
Over the past few years, RGC Resources has focused on several key strategic initiatives. The most significant development has been the completion of interconnections with the Mountain Valley Pipeline (MVP), which became operational in 2024. This $6.6 billion interstate pipeline brings lower-cost natural gas from the Marcellus Shale region directly to RGC's service territory, potentially reducing supply costs and improving system reliability. The company has contracted for 10,000 dekatherms per day from MVP, representing approximately 15% of its firm supply requirements. The company has also pursued geographic expansion into Franklin County, Virginia, receiving regulatory approval and beginning to serve its first customers in this adjacent market. This represents the first meaningful service territory expansion in the company's recent history and provides a potential growth avenue in a region with limited existing natural gas infrastructure. Infrastructure modernization has been another key focus, with the company investing over $20 million annually in pipeline replacements, extensions, and system upgrades under its SAVE program. Recent years have seen accelerated main replacements and new service connections, with 631 new customers added in fiscal 2024. The company has also invested in renewable natural gas (RNG) infrastructure, partnering with the Western Virginia Water Authority on a facility that converts landfill gas into pipeline-quality natural gas, adding approximately $7.7 million to the company's rate base.
RGCO company profile · for informational purposes only — not investment advice.
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