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RGC Resources Inc. (RGCO+0.31%) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing includes financial statements showing a decrease in operating revenues to $84,641,232 from $97,439,765 in the previous year. This decrease is attributed to lower natural gas commodity prices and reduced gas deliveries due to warmer weather.
Gross utility margin increased to $48,565,114 from $45,582,589, primarily due to new non-gas base rates and increased revenues from the Renewable Natural Gas (RNG) facility.
Operating expenses decreased to $67,559,472 from $79,761,285, with significant reductions in the cost of gas due to lower commodity prices.
Net income for the year was $11,760,896, compared to $11,299,282 in the previous year. The increase is attributed to higher equity earnings from the Mountain Valley Pipeline (MVP) and the implementation of new base rates.
RGC Resources reported cash provided by operating activities of $17,433,625, down from $23,796,700 in the previous year, primarily due to lower gas costs and rate refunds.
Capital expenditures were approximately $22,094,406, focused on infrastructure improvements and customer growth, with plans to continue similar levels of investment in the coming years.
The company’s investment in the MVP, which began operations in June 2024, contributed significantly to earnings with equity in earnings of $3,851,871.
RGC Resources maintains a strong balance sheet with total assets of $320,699,223 and a total stockholders' equity of $108,136,775.
The company has identified several operational and regulatory risks, including the volatility of natural gas prices, regulatory changes, and the need for infrastructure improvements.
RGC Resources continues to focus on expanding its customer base and enhancing its infrastructure to meet future demand.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the RGC Resources Inc. annual 10-K report dated December 5, 2024. To report an error, please email earnings@qz.com.