Overview

• US energy provider's Q2 net income and EPS rose yr/yr on higher operating margins

• Q2 operating revenue and operating income increased from prior year

• Higher interim base rates and MVP pipeline earnings offset increased expenses and depreciation

Outlook

• Company expects inflationary pressures to continue to affect results for the remainder of the year

• Interim rates effective January 1, 2026, remain subject to refund pending outcome of rate case

Result Drivers

• HIGHER OPERATING MARGINS - Co said higher operating margins, including the effect of interim base rates under a pending rate case, drove Q2 results

• MVP PIPELINE EARNINGS - Higher earnings from the Mountain Valley Pipeline investment contributed to Q2 performance

• LOWER INTEREST EXPENSE - Decreased interest expense supported improved earnings

Company press release: ID:nGNX79ffwl

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.84

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the natural gas utilities peer group is "buy."

• Wall Street's median 12-month price target for RGC Resources Inc is $22.70, about 0.1% below its May 6 closing price of $22.68

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

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