RGC Resources Inc. Files 2024 10-K

TL;DR

RGC Resources Inc. 2024 10-K filed: $20M assets, $10.25M liabilities, $10M equity. All good.

AI Summary

RGC Resources, Inc. filed its 10-K for the fiscal year ending September 30, 2024. The company reported total assets of $20,000,000 and total liabilities of $10,249,899, resulting in total equity of $10,015,254. The filing also details various financial instruments and rates, including a secured overnight financing rate (SOFR) member with a value of 1.26448.

Why It Matters

This filing provides a detailed financial snapshot of RGC Resources, Inc. for the fiscal year 2024, offering insights into its assets, liabilities, and equity for investors and analysts.

Risk Assessment

Risk Level: low — The filing is a standard annual report with no immediate red flags or significant negative disclosures.

Key Numbers

• $20.0B — Total Assets (Represents the total value of RGC Resources Inc.'s assets as of the fiscal year end.)
• $10.2B — Total Liabilities (Indicates the total amount of RGC Resources Inc.'s obligations.)
• $10.0B — Total Equity (Shows the net worth of RGC Resources Inc. after deducting liabilities from assets.)

Key Players & Entities

• RGC Resources Inc. (company) — Filer of the 10-K
• 0930 (date) — Fiscal year end
• 2024 (date) — Fiscal year
• $20,000,000 (dollar_amount) — Total assets
• $10,249,899 (dollar_amount) — Total liabilities
• $10,015,254 (dollar_amount) — Total equity

FAQ

Key Financial Figures

• $5 — nge on Which Registered Common Stock, $5 Par Value RGCO NASDAQ Global Market

Filing Documents

• rgco20240930_10k.htm (10-K) — 2883KB
• ex_724832.htm (EX-13) — 3KB
• ex_749572.htm (EX-19) — 24KB
• ex_724833.htm (EX-21) — 1KB
• ex_749006.htm (EX-23.1) — 3KB
• ex_724834.htm (EX-23.2) — 4KB
• ex_724835.htm (EX-31.1) — 12KB
• ex_724836.htm (EX-31.2) — 12KB
• ex_724837.htm (EX-32.1) — 6KB
• ex_724838.htm (EX-32.2) — 6KB
• arc_page1.jpg (GRAPHIC) — 39KB
• arc_page2.jpg (GRAPHIC) — 184KB
• arc_page3.jpg (GRAPHIC) — 152KB
• arc_page4.jpg (GRAPHIC) — 47KB
• brownedwardsa071.jpg (GRAPHIC) — 10KB
• 0001437749-24-036744.txt ( ) — 15368KB
• rgco-20240930.xsd (EX-101.SCH) — 105KB
• rgco-20240930_cal.xml (EX-101.CAL) — 81KB
• rgco-20240930_def.xml (EX-101.DEF) — 715KB
• rgco-20240930_lab.xml (EX-101.LAB) — 668KB
• rgco-20240930_pre.xml (EX-101.PRE) — 786KB
• rgco20240930_10k_htm.xml (XML) — 3238KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 13 Item 1C. Cybersecurity 13 Item 2.

Properties

Properties 14 Item 3.

Legal Proceedings

Legal Proceedings 14 Item 4. Mine Safety Disclosures 14 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 15 Item 6. [Reserved] 15 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 7B. Insider Trading Policy 26 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 26 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 70 Item 9A.

Controls and Procedures

Controls and Procedures 70 Item 9B. Other Information 71 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 71 Table of Contents PART III Item 10. Directors, Executive Officers and Corporate Governance 72 Item 11.

Executive Compensation

Executive Compensation 72 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 72 Item 13. Certain Relationships and Related Transactions, and Director Independence 72 Item 14. Principal Accounting Fees and Services 72 PART IV Item 15. Exhibits and Financial Statement Schedules 73 Item 16. Form 10-K Summary 80

Signatures

Signatures 81 Table of Contents GLOSSARY OF TERMS AFUDC Allowance for Funds Used During Construction AIF Annual Informational Filing AOCI/AOCL Accumulated Other Comprehensive Income (Loss) ARO Asset Retirement Obligation ARP Alternative Revenue Program, regulatory or rate recovery mechanisms approved by the SCC that allow for the adjustment of revenues for certain broad, external factors, or for additional billings if the entity achieves certain performance targets ASC Accounting Standards Codification ASU Accounting Standards Update as issued by the FASB ATM At-the-market program whereby a company can incrementally offer common stock through a broker at prevailing market prices and on an as-needed basis COBIT Control Objectives for Information related Technology Company RGC Resources, Inc. or Roanoke Gas Company CPCN Certificate of Public Convenience and Necessity DRIP Dividend Reinvestment and Stock Purchase Plan of RGC Resources, Inc. DTH Decatherm (a measure of energy used primarily to measure natural gas) EPS Earnings Per Share ERISA Employee Retirement Income Security Act of 1974 FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FERC Federal Energy Regulatory Commission GAAP Accounting Principals Generally Accepted in the United States 2 Table of Contents HDD Heating degree day, a measurement designed to quantify the demand for energy. It is the number of degrees that a day's average temperature falls below 65 degrees Fahrenheit ICC Inventory carrying cost revenue, an SCC approved rate structure that mitigates the impact of financing costs on natural gas inventory IRS Internal Revenue Service KEYSOP RGC Resources, Inc. Key Employee Stock Option Plan LDI Liability Driven Investment approach, a strategy which reduces the volatility in the pension plan's funded status and expense by matching the duration of the fixed income investments with the duration of the corres

Business

Item 1. Business . General and Historical Development Resources was incorporated in the Commonwealth of Virginia on July 31, 1998 and, effective July 1, 1999, its subsidiaries were reorganized into the Resources holding company structure. Resources is currently composed of the following subsidiaries: Roanoke Gas and Midstream. Roanoke Gas, originally established in 1883, was organized as a public service corporation under the laws of the Commonwealth of Virginia in 1912. The principal service of Roanoke Gas is the distribution and sale of natural gas to residential, commercial and industrial customers within its service territory in Roanoke, Virginia and the surrounding localities. Roanoke Gas also provides certain non-regulated services which account for less than 1% of consolidated revenues. In July 2015, the Company formed Midstream for the purpose of becoming an investor in Mountain Valley Pipeline, LLC. The LLC was created to construct and operate interstate natural gas pipelines. Additional information regarding this investment is provided under Note 5 of the Company's annual consolidated financial statements and under the Equity Investment in Mountain Valley Pipeline section of Item 7. 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. The schedule below is a summary of customers, delivered volumes (expressed in DTHs), revenues and margin as a percentage of the total for each category. For the purposes of this schedule, margin is defined as revenues less cost of gas. 2024 Customers Volume Revenue Margin Residential 91.3 % 32.7 % 58.5 % 63.1 % Commercial 8.6 % 29.5 % 34.0 % 25.3 % Industrial 0.1 % 37.8 % 6.4 % 9.8 % Other 0.0 % 0.0 % 1.1 % 1.8 % Total percent 100.0 % 100.0 % 100.0 % 100.0 % Total value 62,510 10,048,770 $ 84,

Risk Factors

Item 1A. Risk Factors Please carefully consider the risks described below regarding the Company. These risks are not the only ones faced by the Company. Additional risks not presently known to the Company or that the Company currently believes are immaterial may also impair business operations and financial results. If any of the following risks actually occur, the Company's business, financial condition or results of operations could be adversely affected. In such case, the trading price of the Company's common stock could decline and investors could lose all or part of their investment. The risk factors below are categorized by operational, regulatory and financial: OPERATIONAL RISKS Risks associated with the operation of a natural gas distribution pipeline and LNG storage facility. Numerous potential risks are inherent in the operation of a natural gas distribution system and LNG storage facility, including unanticipated or unforeseen events that are beyond the control of the Company. Examples of such events include adverse weather conditions, acts of terrorism or sabotage, accidents and damage caused by third parties, equipment failure, failure of upstream pipelines and storage facilities, as well as catastrophic events such as explosions, fires, earthquakes, floods, or other similar events. These risks could result in injury or loss of life, property damage, pollution and customer service disruption resulting in potentially significant financial losses. The Company maintains insurance coverage to protect against many of these risks. However, if losses result from an event that is not fully covered by insurance, the Company's financial condition could be significantly impacted if it were unable to recover such losses from customers through the regulatory rate-making process. Even if the Company did not incur a direct financial loss as a result of any of the events noted above, it could encounter significant reputational damage from a reliability, safety,

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