RGC Resources (RGCO) 10-Q 8 Feb 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2018	Jan. 31, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Entity Registrant Name	RGC RESOURCES INC
Entity Central Index Key	1,069,533
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		8,022,969

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2018	Sep. 30, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 10,809	$ 247,411
Accounts receivable (less allowance for uncollectibles of $232,293 and $103,573, respectively)	11,715,432	3,913,830
Materials and supplies	968,101	913,889
Gas in storage	6,161,587	7,627,196
Prepaid income taxes	225,293	837,683
Under-recovery of gas costs	1,365,700	922,898
Interest rate swap	70,922	100,723
Other	1,811,891	980,972
Total current assets	22,329,735	15,544,602
UTILITY PROPERTY:
In service	227,481,444	224,854,320
Accumulated depreciation and amortization	(64,465,841)	(63,099,306)
In service, net	163,015,603	161,755,014
Construction work in progress	7,016,450	4,208,614
Utility plant, net	170,032,053	165,963,628
OTHER ASSETS:
Regulatory assets	8,848,720	8,862,147
Investment in unconsolidated affiliates	32,817,281	28,507,146
Interest rate swap	130,023	209,840
Other	544,979	472,743
Total other assets	42,341,003	38,051,876
TOTAL ASSETS	234,702,791	219,560,106
CURRENT LIABILITIES:
Dividends payable	1,329,290	1,242,753
Accounts payable	6,788,991	5,211,032
Capital contributions payable	3,747,086	10,142,766
Customer credit balances	809,289	1,003,622
Customer deposits	1,562,217	1,421,043
Accrued expenses	2,844,605	3,750,466
Regulatory liability - tax reform	2,334,600	1,320,167
Total current liabilities	19,416,078	24,091,849
LONG-TERM DEBT:
Notes payable	73,587,200	63,243,200
Line-of-credit	15,801,798	7,361,017
Less unamortized debt issuance costs	(269,587)	(282,281)
Long-term debt net of unamortized debt issuance costs	89,119,411	70,321,936
DEFERRED CREDITS AND OTHER LIABILITIES:
Asset retirement obligations	6,489,550	6,417,948
Regulatory cost of retirement obligations	11,481,314	11,163,981
Benefit plan liabilities	3,645,261	3,947,967
Deferred income taxes	12,761,997	12,585,577
Regulatory liability - deferred income taxes	10,829,440	11,447,736
Total deferred credits and other liabilities	45,207,562	45,563,209
STOCKHOLDERS’ EQUITY:
Common stock, $5 par value; authorized 10,000,000 shares; issued and outstanding 8,011,650 and 7,994,615, respectively	40,058,250	39,973,075
Preferred stock, no par, authorized 5,000,000 shares; no shares issued and outstanding	0	0
Capital in excess of par value	13,306,598	13,043,656
Retained earnings	28,549,876	27,438,049
Accumulated other comprehensive loss	(954,984)	(871,668)
Total stockholders’ equity	80,959,740	79,583,112
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 234,702,791	$ 219,560,106

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for uncollectibles	$ 232,293	$ 103,573
Common stock, par value (in dollars per share)	$ 5	$ 5
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	8,011,650	7,994,615
Common stock, share outstanding	8,011,650	7,994,615
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, share outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
OPERATING REVENUES:
Operating revenues	$ 21,216,747	$ 18,756,051
OPERATING EXPENSES:
Operations and maintenance	3,521,999	3,227,744
General taxes	507,889	466,322
Depreciation and amortization	1,905,475	1,734,878
Total operating expenses	17,952,525	15,111,560
OPERATING INCOME	3,264,222	3,644,491
Equity in earnings of unconsolidated affiliate	563,049	148,811
Other income (expense), net	125,886	14,501
Interest expense	816,782	612,645
INCOME BEFORE INCOME TAXES	3,136,375	3,195,158
INCOME TAX EXPENSE	702,213	1,135,696
NET INCOME	$ 2,434,162	$ 2,059,462
BASIC EARNINGS PER COMMON SHARE (in dollars per share)	$ 0.30	$ 0.28
DILUTED EARNINGS PER COMMON SHARE (in dollars per share)	0.30	0.28
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.165	$ 0.155
Gas Utility [Member]
OPERATING REVENUES:
Operating revenues	$ 21,036,581	$ 18,519,994
OPERATING EXPENSES:
Cost of gas and sales	11,906,459	9,561,406
Non Utility [Member]
OPERATING REVENUES:
Operating revenues	180,166	236,057
OPERATING EXPENSES:
Cost of gas and sales	$ 110,703	$ 121,210

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 2,434,162	$ 2,059,462
Other comprehensive income (loss), net of tax:
Interest rate swap	(81,403)	44,645
Defined benefit plans	(1,913)	(4,249)
Other comprehensive loss	(83,316)	40,396
COMPREHENSIVE INCOME	$ 2,350,846	$ 2,099,858

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period at Sep. 30, 2017	$ 60,040,472	$ 36,204,230	$ 292,485	$ 24,746,021	$ (1,202,264)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,059,462			2,059,462
Other comprehensive income (loss)	40,396				40,396
Cash dividends declared	(1,125,804)			(1,125,804)
Issuance of common stock	286,509	50,840	235,669
Balance at end of period at Dec. 31, 2017	61,301,035	36,255,070	528,154	25,679,679	(1,161,868)
Balance at beginning of period at Sep. 30, 2018	79,583,112	39,973,075	13,043,656	27,438,049	(871,668)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,434,162			2,434,162
Other comprehensive income (loss)	(83,316)				(83,316)
Cash dividends declared	(1,322,335)			(1,322,335)
Issuance of common stock	348,117	85,175	262,942
Balance at end of period at Dec. 31, 2018	$ 80,959,740	$ 40,058,250	$ 13,306,598	$ 28,549,876	$ (954,984)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.165	$ 0.155
Common stock issued (in shares)	17,035	10,168

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,434,162	$ 2,059,462
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,940,472	1,765,779
Cost of retirement of utility plant, net	(50,093)	(121,384)
Equity in earnings of unconsolidated affiliate	(563,049)	(148,811)
Changes in assets and liabilities which used cash, exclusive of changes and noncash transactions shown separately	(6,061,666)	(5,513,739)
Net cash used in operating activities	(2,300,174)	(1,958,693)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to utility plant and nonutility property	(5,691,011)	(4,306,651)
Investment in unconsolidated affiliate	(10,142,766)	(1,232,980)
Proceeds from disposal of equipment	249	244
Net cash used in investing activities	(15,833,528)	(5,539,387)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes payable	10,344,000	9,264,000
Borrowings under line-of-credit agreement	13,760,363	11,888,529
Repayments under line-of-credit agreement	(5,319,582)	(12,625,912)
Proceeds from issuance of stock	348,117	286,509
Cash dividends paid	(1,235,798)	(1,050,408)
Net cash provided by financing activities	17,897,100	7,762,718
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(236,602)	264,638
BEGINNING CASH AND CASH EQUIVALENTS	247,411	69,640
ENDING CASH AND CASH EQUIVALENTS	10,809	334,278
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	1,101,028	814,061
Income taxes paid	$ 0	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of RGC Resources, Inc. ("Resources" or the "Company") and its wholly-owned subsidiaries: Roanoke Gas Company; Diversified Energy Company; and RGC Midstream, LLC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly Resources' financial position as of December 31, 2018 and the results of its operations, cash flows, comprehensive income and changes in stockholders' equity for the three months ended December 31, 2018 and 2017 . The results of operations for the three months ended December 31, 2018 are not indicative of the results to be expected for the fiscal year ending September 30, 2019 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months. The unaudited condensed consolidated interim financial statements and condensed notes are presented as permitted under the rules and regulations of the Securities and Exchange Commission. Pursuant to those rules, certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information not misleading. Therefore, the condensed consolidated financial statements and condensed notes should be read in conjunction with the financial statements and notes contained in the Company’s Form 10-K for the year ended September 30, 2018 . The September 30, 2018 balance sheet was included in the Company’s audited financial statements included in Form 10-K. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant accounting policies are described in Note 1 to the consolidated financial statements in Form 10-K for the year ended September 30, 2018 . Newly adopted and newly issued accounting standards are discussed below. Certain reclassifications have been made to the prior year income statements to be consistent with the current year presentation by moving cost of gas - utility and cost of sales - non utility under the operating expenses caption. This reclassification makes the Company's income statement presentation consistent with industry peers. Recently Issued or Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. Subsequently issued ASUs provided additional guidance to assist in the implementation of the new revenue standard. The standard is effective for the Company's annual reporting period ending September 30, 2019 and interim periods within that annual period. The Company adopted ASU 2014-09 and all amendments in the quarter ended December 31, 2018. Consistent with the modified retrospective adoption method, prior reporting period results remain unchanged and reported in accordance with ASC 605. As it relates to the Company’s contracts to deliver natural gas to customers, the guidance in ASC 606 is consistent with the guidance in ASC 605; therefore, the modified retrospective approach resulted in no cumulative catch-up to retained earnings. Furthermore, there was no significant impact to revenues recognized for the quarter ended December 31, 2018 and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting because of the new guidance. See Note 2 for further information related to the new standard. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The Company adopted the ASU for the quarter ended December 31, 2018. The new guidance did not have a material effect on the Company's financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. In addition, the new guidance includes quantitative and qualitative disclosure requirements to aid financial statement users in better understanding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. In January 2018, the FASB issued ASU 2018-01, which provides a practical expedient that allows entities the option of not evaluating existing land easements under the new lease standard for those easements that were entered into prior to adoption. New or modified land easements will require evaluation on a prospective basis. The Company has completed its inventory of leases and does not currently expect the new gudiance to have a material effect on its financial position, results of operations or cash flows. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits . The primary objective of this guidance is to improve the financial statement presentation of net periodic pension and postretirement benefit costs; however, it also changes which cost components are eligible for capitalization. The amendments in the ASU require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and, if a subtotal for income from operations is presented, outside of income from operations. The Company adopted the new guidance effective October 1, 2018. As a result, the Company now presents the other components of net periodic benefit costs outside of operations under the category of "other income (expense), net" in the condensed consolidated income statement. As the new guidance related to the expense classification was implemented on a retrospective basis, adjustments were made to the prior period financial statements as follow: Three Months Ended December 31, 2017 As Previously Reported Effect of Change As Adjusted Operations and maintenance $ 3,197,111 $ 30,633 $ 3,227,744 Total operating expenses 15,080,927 30,633 15,111,560 Operating income 3,675,124 (30,633 ) 3,644,491 Other income (expense), net (16,132 ) 30,633 14,501 Income before income taxes $ 3,195,158 $ — $ 3,195,158 In addition, the ASU allows only the service cost component of net periodic benefit cost to be eligible for capitalization when applicable. Previously, the Company included all components of net periodic benefit costs for capitalization. Management has had discussions with its state regulators regarding the adoption of this ASU for regulatory purposes. The regulatory body has not taken a position on the change in capitalization requirements for these benefit costs and will evaluate the impact of this ASU on a case by case basis. The Company adopted the capitalization change prospectively on October 1, 2018. If the regulatory body ultimately determines that changes to the capitalization of these retirement benefits is not appropriate for regulatory purposes, the Company may have to establish regulatory assets or liabilities for those costs or benefits excluded from capitalization under this ASU. The adoption of this new guidance does not have a material effect on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting For Hedging Activities . The ASU is meant to simplify recognition and presentation guidance in an effort to improve financial reporting of cash flow and fair value hedging relationships to better portray the economic results of an entity's risk management activities. This is achieved through changes to both the designation and measurement guidance for qualifying hedging relationships, as well as changes to the presentation of hedge results. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, it does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new guidance is effective for the Company for the annual reporting period ending September 30, 2021. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, the ASU only modifies disclosure requirements and will not effect financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs incurred in a Cloud Computing Arrangement that is a Service Contract . This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement and aligns the following requirements to capitalize implementation costs: 1) those incurred in a hosting arrangement that is a service contract, and 2) those incurred to develop or obtain internal-use software, including hosting arrangements that include an internal software license. The new guidance is effective for the Company for the annual reporting period beginning October 1, 2020. Management has not completed its evaluation of the new guidance; however, it believes the new guidance will change the future treatment of certain contracts by allowing related implementation costs to be capitalized and amortized over time, rather than directly expensed. Management does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. Other accounting standards that have been issued by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Revenue

Revenue	3 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Revenue The Company assesses new contracts and identifies related performance obligations for promises to transfer distinct goods or services to the customer. Revenue is recognized when performance obligations have been satisfied. In the case of Roanoke Gas, the Company contracts with its customers for the sale and/or delivery of natural gas. The following tables summarize revenue by customer, product and income statement classification: Three months ended December 31, 2018 Three months ended December 31, 2017 Gas utility Non utility Total operating revenues Gas utility Non utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 13,012,592 $ — $ 13,012,592 $ 11,233,500 $ — $ 11,233,500 Commercial 7,342,702 — 7,342,702 6,306,857 — 6,306,857 Industrial and Transportation 1,226,137 — 1,226,137 1,124,657 — 1,124,657 Revenue reductions (TCJA) (1) (523,881 ) — (523,881 ) (462,442 ) — (462,442 ) Other 226,492 180,166 406,658 245,262 236,057 481,319 Total contracts with customers 21,284,042 180,166 21,464,208 18,447,834 236,057 18,683,891 Alternative Revenue Programs (247,461 ) — (247,461 ) 72,160 — 72,160 Total operating revenues $ 21,036,581 $ 180,166 $ 21,216,747 $ 18,519,994 $ 236,057 $ 18,756,051 (1) Accrued refund associated with excess revenue collected in tariff rates associated with the reduction in federal income tax rates. See Note 4 for more information. Gas utility revenues Substantially all of Roanoke Gas’ revenues are derived from rates authorized by the Virginia State Corporation Commission ("SCC") as reflected in its tariffs. Based on its evaluation of ASC 606, the Company has concluded that these tariff-based revenues fall within the scope of ASC 606. Tariff rates represent the transaction price. Performance obligations created under these tariff-based sales include commodity (the cost of natural gas sold to customers) and delivery (transporting natural gas through the Company’s distribution system to customers). The sale and/or delivery of natural gas to customers result in the satisfaction of the Company’s performance obligation over time as natural gas is delivered. All customers are billed each month based on consumption as measured by metered usage. Revenue is recognized as bills are issued for natural gas that has been delivered or transported to customers. In addition, the Company utilizes the practical expedient that allows an entity to recognize the invoiced amount as revenue, if that amount corresponds to the value received by the customer. Since customers are billed tariff rates, there is no variable consideration in transaction price. Unbilled revenue is included in residential and commercial revenues above. Natural gas consumption is estimated for the period subsequent to the last billed date and up through the last day of the month. Estimated volumes and approved tariff rates are utilized to calculate unbilled revenue. The following month, the unbilled estimate is reversed, the actual usage is billed and a new unbilled estimate is calculated. The Company obtains metered usage for industrial customers at the end of each month, thereby eliminating any unbilled consideration for these rate classes. Other revenues Other revenues primarily consist of miscellaneous fees and charges and utility-related revenues not directly billed to utility customers as well as billings for non utility activities. Non utility (unregulated) activities provided by the Company include contract paving and other similar services. Regarding these activities, the customer is invoiced monthly based on services provided. The Company utilizes the practical expedient allowing revenue to be recognized based on invoiced amounts. The transaction price is based on a contractually predetermined rate schedule; therefore, the transaction price represents total value to the customer and no variable price consideration exists. Alternative Revenue Program (ARP) revenues ARPs, which fall outside the scope of ASC 606, are SCC approved mechanisms that allow for the adjustment of revenues for certain broad, external factors, or for additional billings if the entity achieves certain performance targets. The Company's ARPs include its Weather Normalization Adjustment (WNA), which adjusts revenues for the effects of weather temperature variations from the 30-year average, and the SAVE Plan over/under collection mechanism, which adjusts revenues for the differences between SAVE Plan revenues ("Steps to Advance Virginia Energy") billed to customers in the current tariff rates and the revenue earned, as calculated based on the timing and extent of infrastructure replacement completed during the period. These amounts are ultimately collected from, or returned to, customers through future changes to tariff rates. Customer Accounts Receivable Accounts receivable, as reflected in the Condensed Consolidated Balance Sheets, includes both billed and unbilled customer revenues, as well as amounts that are not related to customers. The balances of customer receivables are provided below: Assets (current) Liabilities (current) Trade accounts receivable (1) Unbilled revenue (1) Customer credit balances Customer deposits Balance at September 30, 2018 $ 2,675,611 $ 913,087 $ 1,003,622 $ 1,421,043 Balance at December 31, 2018 7,676,308 3,784,863 809,289 1,562,217 Increase (decrease) $ 5,000,697 $ 2,871,776 $ (194,333 ) $ 141,174 (1) Included in "Accounts receivable, net" in the condensed consolidated balance sheet. Amounts shown net of reserve for bad debts. The Company had no significant contract assets or liabilities during the period. Furthermore, the Company did not incur any significant costs to obtain contracts.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act, ("TCJA") became law. The TCJA's most significant impact is the reduction of the maximum corporate federal income tax rate from 35% to 21% beginning January 1, 2018. As the Company is a fiscal year taxpayer, it had a blended rate of 24.3% in fiscal 2018 as determined by the number of days in the fiscal year in which the 34% and 21% , rates were each applicable. The Company fully transitioned to the 21% rate in fiscal 2019. Under the provisions of ASC 740 - Income Taxes , the deferred tax assets and liabilities of the Company must be revalued to reflect the reduction in the federal tax rate. For unregulated entities, the revaluation of excess deferred income taxes are flowed through income tax expense in the period of change. For rate regulated entities such as Roanoke Gas, these excess deferred taxes were originally recovered from its customers based on billing rates derived using a federal income tax rate of 34% . As a result, these excess deferred taxes must be returned to customers. The Company began reflecting the refund of these excess deferred taxes in fiscal 2018. As the refund should have no effect on the income of the Company, the income statement reflects both a reduction in revenues and a corresponding reduction in income taxes associated with the flow back of these excess deferred taxes. The result is a lowering of the effective tax rate for the Company. A reconciliation of income tax expense from applying the federal statutory rates in effect for each period to total income tax expense is presented below: Three Months Ended December 31, 2018 2017 Income before income taxes $ 3,136,375 $ 3,195,158 Corporate federal tax rate 21.00 % 24.30 % Income tax expense computed at the federal statutory rate $ 658,639 $ 776,423 State income taxes, net of federal tax benefit 150,589 146,087 Net amortization of excess deferred taxes on regulated operations (86,208 ) — Revaluation of unregulated deferred taxes — 206,830 Other, net (20,807 ) 6,356 Total income tax expense $ 702,213 $ 1,135,696 Effective tax rate 22.4 % 35.5 %

Rates and Regulatory Matters

Rates and Regulatory Matters	3 Months Ended
	Dec. 31, 2018
Regulated Operations [Abstract]
Rates and Regulatory Matters	Rates and Regulatory Matters The SCC exercises regulatory authority over the natural gas operations of Roanoke Gas. Such regulation encompasses terms, conditions and rates to be charged to customers for natural gas service; safety standards; extension of service; and accounting and depreciation. As referenced in Note 3, the TCJA provides for a reduction in the federal corporate tax rate to 21% . The Company revalued its deferred tax assets and liabilities to reflect the new federal tax rate. Under the provisions of ASC 740, the corresponding adjustment to deferred income taxes generally flows directly to income tax expense. For rate regulated entities such as Roanoke Gas, these excess deferred taxes were originally recovered from its customers based on billing rates derived using a federal income tax rate of 34% . Therefore, the adjustment to the net deferred tax liabilities of Roanoke Gas, to the extent such net deferred tax liabilities are attributable to rate base or cost of service for customers, are refundable to customers. Roanoke Gas began accounting for the refund of these excess deferred taxes in fiscal 2018 along with reflecting a corresponding reduction in income tax expense. As of December 31, 2018, Roanoke Gas had $11,293,801 remaining in both the current and non-current portions of the net regulatory liability related to these excess deferred income taxes most of which will be refunded over a 28 year period in order not to violate IRS normalization requirements. The Company has transitioned to a corporate federal income tax rate of 21.0% and a combined 25.74% state and federal tax rate in fiscal 2019. In January 2018, the SCC issued a directive requiring the accrual of a regulatory liability for excess revenues collected from customers attributable to the higher federal income tax rate, currently included as a component of customer billing rates, until such time as the SCC approves revised billing rates incorporating the lower tax rate. For the three-month periods ending December 31, 2018 and 2017, the Company had recorded a reduction to revenue of $523,881 and $462,442 , respectively, reflecting the estimated excess revenue collected from customers during the corresponding quarters with a total estimated refund balance of $1,882,508 as of December 31, 2018. The reduction in revenues correlates with a reduction in corporate income tax expense for the regulated operations of Roanoke Gas for each period due to the tax rate decrease. Beginning with January 2019 customer billings, the Company will refund the excess revenues to customers over the next 12 months. The estimated total refund of these excess revenues is subject to final review and adjustment by the SCC. The current portion of the excess deferred income tax and the accrued refund for excess revenues are included in regulatory liabilities - tax reform line in the Condensed Consolidated Balance Sheet. On October 10, 2018, Roanoke Gas filed a general rate case application requesting an annual increase in customer non-gas base rates of $10.5 million . This application incorporates into the non-gas base rate the impact of tax reform, non-SAVE utility plant investment, increased operating costs and approximately $4.7 million in SAVE plan ("Steps to Advance Virginia Energy") revenues that are currently being billed through the SAVE rider. The new non-gas base rates were placed in effect for service rendered on or after January 1, 2019, subject to refund pending audit and final order by the SCC. The last non-gas base rate increase was placed into effect in November 2013.

Other Investments

Other Investments	3 Months Ended
	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Other Investments	Other Investments In October 2015, the Company, through its wholly-owned subsidiary, RGC Midstream, LLC ("Midstream"), acquired a 1% equity interest in the Mountain Valley Pipeline, LLC (the “LLC”). The LLC was established to construct and operate the Mountain Valley Pipeline ("MVP" or "pipeline"), a natural gas pipeline originating in northern West Virginia and extending through south central Virginia. When completed, the pipeline will have the capacity to transport approximately 2 million decatherms of natural gas per day. The pipeline has received Federal Energy Regulatory Commission ("FERC") approval and is under construction. The current total project cost as estimated by the LLC managing partner has increased to $4.6 billion due to weather, judicial and regulatory delays. Midstream's estimated total cash contribution for its 1% equity interest in the LLC will be approximately $46 million through periodic capital contributions throughout the term of the project. Assuming timely resolution of the judicial and regulatory delays, the LLC managing partner projects an in-service date for the MVP by the end of calendar 2019. The Company is utilizing the equity method to account for the transactions and activity of the investment in MVP and is participating in the earnings in proportion to its level of investment. In April 2018, the LLC announced the MVP Southgate project ("Southgate"), which is a planned 70 mile pipeline extending from the MVP mainline in Virginia to delivery points in North Carolina. Midstream is a less than 1% investor in the project, which will be accounted for under the cost method. Total estimated project cost is between $350 and $500 million , of which Midstream's portion will be approximately $1.8 to $2.5 million . The Southgate in-service date is currently targeted for the end of calendar 2020. On a quarterly basis, the LLC issues a capital call notice, which specifies the capital contributions for MVP and Southgate to be paid over the subsequent 3 months . As of December 31, 2018 , the Company had $3,747,086 remaining to be paid under the most recent notice. The capital contribution payable has been reflected on the Company's balance sheet as of December 31, 2018 , with a corresponding increase to "investment in unconsolidated affiliates". Related to capital contributions payable, there was a $6,395,680 non-cash decrease in the "investment in unconsolidated affiliates" during the three months ended December 31, 2018 . Funding for Midstream's investments in the LLC for both the MVP and Southgate projects are being provided through two unsecured promissory notes, each with a 5 -year term. The financial statement locations of the investment in the LLC are as follows: Balance Sheet Location of Other Investments: December 31, 2018 September 30, 2018 Other Assets: Investment in MVP $ 32,629,235 $ 28,387,031 Investment in Southgate 188,046 120,115 Investment in unconsolidated affiliates $ 32,817,281 $ 28,507,146 Current Liabilities: MVP $ 3,679,154 $ 10,022,652 Southgate 67,932 120,114 Capital contributions payable $ 3,747,086 $ 10,142,766 Three Months Ended Income Statement Location of Other Investments: December 31, 2018 December 31, 2017 Equity in earnings of unconsolidated affiliate $ 563,049 $ 148,811

Derivatives and Hedging

Derivatives and Hedging	3 Months Ended
	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging	Derivatives and Hedging The Company’s risk management policy allows management to enter into derivatives for the purpose of managing the commodity and financial market risks of its business operations. The Company’s risk management policy specifically prohibits the use of derivatives for speculative purposes. The key market risks that the Company seeks to hedge include the price of natural gas and the cost of borrowed funds. The Company has one interest rate swap associated with its $7,000,000 term note as discussed in Note 7. Effective November 1, 2017, the swap agreement converted the floating rate note based on LIBOR into fixed-rate debt with a 2.30% effective interest rate. The swap qualifies as a cash flow hedge with changes in fair value reported in other comprehensive income. No portion of the swap was deemed ineffective during the periods presented. The table below reflects the fair values of the derivative instrument and its corresponding classification in the condensed consolidated balance sheet: December 31, 2018 September 30, 2018 Derivative designated as hedging instrument: Current assets: Interest rate swap $70,922 $100,723 Other assets: Interest rate swap $130,023 $209,840 Total derivatives designed as hedging instruments $200,945 $310,563 The table in Note 8 reflects the effect on income and other comprehensive income of the Company's cash flow hedge.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Roanoke Gas has unsecured notes at varying fixed interest rates as well as a variable-rate note with interest based on 30-day LIBOR plus 90 basis points . The variable rate note is hedged by a swap agreement, which converts the debt into a fixed-rate instrument with an annual interest rate of 2.30% . These debt instruments provide a portion of the underlying financing for Roanoke Gas' utility plant investment. Roanoke Gas also has an unsecured line-of-credit agreement. This agreement is for a two -year term expiring March 31, 2020 with a maximum borrowing limit of $25,000,000 . Amounts drawn against the agreement are considered to be non-current as the balance under the line-of-credit is not subject to repayment within the next 12-month period. The agreement has a variable-interest rate based on 30-day LIBOR plus 100 basis points and an availability fee of 15 basis points and provides multi-tiered borrowing limits associated with the seasonal borrowing demands of the Company. The Company's total available borrowing limits during the remaining term of the agreement range from $17,000,000 to $25,000,000 . Midstream has two Promissory Notes ("Notes") to finance the capital investment in the LLC related to the construction of the MVP. Under the terms of the Notes, Midstream's current total borrowing availability is $38 million with a variable-interest rate based on 30-day LIBOR plus 135 basis points . On January 2, 2019, Roanoke Gas entered into an agreement to issue notes in the aggregate principal amount of $10 million . These notes are scheduled to be issued on the day of closing currently proposed for March 28, 2019. These notes will have a 12 -year term from the date of issue with a fixed interest rate of 4.41% . Proceeds from these notes will be used to refinance a portion of Roanoke Gas' debt under the line-of-credit. All of the debt agreements set forth certain representations, warranties and covenants to which the Company is subject, including financial covenants that limit consolidated long-term indebtedness to not more than 65% of total capitalization. All of the debt agreements, except for the line-of-credit, provide for priority indebtedness to not exceed 15% of consolidated total assets. Long-term debt consists of the following: December 31, 2018 September 30, 2018 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas Company: Unsecured senior notes payable, at 4.26% due on September 18, 2034 $ 30,500,000 $ 152,052 $ 30,500,000 $ 154,465 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 9,449 7,000,000 10,283 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 42,139 8,000,000 43,343 RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 28,087,200 65,947 17,743,200 74,190 Total notes payable $ 73,587,200 $ 269,587 $ 63,243,200 $ 282,281 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 $ 15,801,798 $ — $ 7,361,017 $ — Total long-term debt $ 89,388,998 $ 269,587 $ 70,604,217 $ 282,281

Other Comprehensive Income

Other Comprehensive Income	3 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Other Comprehensive Income	Other Comprehensive Income A summary of other comprehensive income and loss is provided below: Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Three Months Ended December 31, 2018 Interest rate swap: Unrealized losses $ (93,956 ) $ 24,184 $ (69,772 ) Transfer of realized gains to interest expense (15,662 ) 4,031 (11,631 ) Net interest rate swap (109,618 ) 28,215 (81,403 ) Defined benefit plans: Amortization of actuarial gains (2,576 ) 663 (1,913 ) Other comprehensive loss $ (112,194 ) $ 28,878 $ (83,316 ) Three Months Ended December 31, 2017 Interest rate swap: Unrealized gains $ 61,581 $ (17,760 ) $ 43,821 Transfer of realized losses to interest expense 1,158 (334 ) 824 Net interest rate swap 62,739 (18,094 ) 44,645 Defined benefit plans: Amortization of actuarial gains (5,971 ) 1,722 (4,249 ) Other comprehensive income $ 56,768 $ (16,372 ) $ 40,396 The amortization of actuarial losses is included as a component of net periodic pension and postretirement benefit costs under other income (expense), net. Reconciliation of Other Accumulated Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2018 $ (871,668 ) Other comprehensive loss (83,316 ) Balance at December 31, 2018 $ (954,984 )

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Roanoke Gas currently holds the only franchises and/or certificates of public convenience and necessity to distribute natural gas in its service area. The current franchise agreements expire December 31, 2035 . The Company's certificates of public convenience and necessity are exclusive and are intended for perpetual duration. Due to the nature of the natural gas distribution business, the Company has entered into agreements with both suppliers and pipelines for natural gas commodity purchases, storage capacity and pipeline delivery capacity. The Company obtains most of its regulated natural gas supply through an asset manager. The Company utilizes an asset manager to assist in optimizing the use of its transportation, storage rights and gas supply in order to provide a secure and reliable source of natural gas to its customers. The Company also has storage and pipeline capacity contracts to store and deliver natural gas to the Company’s distribution system. Roanoke Gas is currently served directly by two primary pipelines. These two pipelines deliver all of the natural gas supplied to the Company’s distribution system. Depending on weather conditions and the level of customer demand, failure of one or both of these transmission pipelines could have a major adverse impact on the Company's ability to deliver natural gas to its customers and its results of operations. The MVP will provide Roanoke Gas with access to an additional delivery source to its distribution system.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per common share for the three months ended December 31, 2018 and 2017 were calculated by dividing net income by the weighted average common shares outstanding during the period. Diluted earnings per common share were calculated by dividing net income by the weighted average common shares outstanding during the period plus potential dilutive common shares. A reconciliation of basic and diluted earnings per share is presented below: Three Months Ended December 31, 2018 2017 Net Income $ 2,434,162 $ 2,059,462 Weighted average common shares 8,003,736 7,248,094 Effect of dilutive securities: Options to purchase common stock 48,261 48,086 Diluted average common shares 8,051,997 7,296,180 Earnings Per Share of Common Stock: Basic $ 0.30 $ 0.28 Diluted $ 0.30 $ 0.28

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company has both a defined benefit pension plan (the “pension plan”) and a postretirement benefit plan (the “postretirement plan”). The pension plan covers substantially all of the Company’s employees hired before January 1, 2017 and provides retirement income based on years of service and employee compensation. The postretirement plan provides certain health care and supplemental life insurance benefits to retired employees who meet specific age and service requirements. Net pension plan and postretirement plan expense is detailed as follows: Three Months Ended December 31, 2018 2017 Components of net periodic pension cost: Service cost $ 134,317 $ 166,309 Interest cost 291,682 272,045 Expected return on plan assets (387,359 ) (465,710 ) Recognized loss 39,650 87,758 Net periodic pension cost $ 78,290 $ 60,402 Three Months Ended December 31, 2018 2017 Components of postretirement benefit cost: Service cost $ 33,221 $ 41,805 Interest cost 162,236 160,151 Expected return on plan assets (136,805 ) (155,845 ) Recognized loss 30,951 70,967 Net postretirement benefit cost $ 89,603 $ 117,078 The components of net periodic benefit cost, other than the service cost component, are included in the line item "other income (expense), net" in the condensed consolidated income statement as prescribed under ASU 2017-07 and discussed in Note 1. Service cost is included in the "operations and maintenance" line. The table below reflects the Company's actual contributions made fiscal year-to-date and the expected contributions to be made during the balance of the current fiscal year. Fiscal Year-to-Date Contributions Remaining Fiscal Year Contributions Defined benefit pension plan $ 400,000 $ 400,000 Postretirement medical plan — 300,000 Total $ 400,000 $ 700,000

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements FASB ASC No. 820, Fair Value Measurements and Disclosures , established a fair value hierarchy that prioritizes each input to the valuation method used to measure fair value of financial and nonfinancial assets and liabilities that are measured and reported on a fair value basis into one of the following three levels: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices in Level 1 that are either for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs for the asset or liability where there is little, if any, market activity for the asset or liability at the measurement date. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as required by existing guidance and the fair value measurements by level within the fair value hierarchy as of December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 200,945 $ — $ 200,945 $ — Total $ 200,945 $ — $ 200,945 $ — Liabilities: Natural gas purchases $ 749,564 $ — $ 749,564 $ — Total $ 749,564 $ — $ 749,564 $ — Fair Value Measurements - September 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 310,563 $ — $ 310,563 $ — Total $ 310,563 $ — $ 310,563 $ — Liabilities: Natural gas purchases $ 693,495 $ — $ 693,495 $ — Total $ 693,495 $ — $ 693,495 $ — The fair value of the interest rate swap is determined by using the counterparty's proprietary models and certain assumptions regarding past, present and future market conditions. Under the asset management contract, a timing difference can exist between the payment for natural gas purchases and the actual receipt of such purchases. Payments are made based on a predetermined monthly volume with the price based on weighted average first of the month index prices corresponding to the month of the scheduled payment. At December 31, 2018 and September 30, 2018 , the Company had recorded in accounts payable the estimated fair value of the liability valued at the corresponding first of month index prices for which the liability is expected to be settled. The Company’s nonfinancial assets and liabilities measured at fair value on a nonrecurring basis consist of its asset retirement obligations. The asset retirement obligations are measured at fair value at initial recognition based on expected future cash flows required to settle the obligation. The carrying value of cash and cash equivalents, accounts receivable, accounts payable (with the exception of the timing difference under the asset management contract), customer credit balances and customer deposits is a reasonable estimate of fair value due to the short-term nature of these financial instruments. In addition, the carrying amount of the variable rate line-of-credit is a reasonable approximation of its fair value. The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 73,587,200 $ — $ — $ 72,219,484 Total $ 73,587,200 $ — $ — $ 72,219,484 Fair Value Measurements - September 30, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 63,243,200 $ — $ — $ 62,435,237 Total $ 63,243,200 $ — $ — $ 62,435,237 The fair value of long-term debt is estimated by discounting the future cash flows of the debt based on current market rates and corresponding interest rate spreads. FASB ASC 825, Financial Instruments , requires disclosures regarding concentrations of credit risk from financial instruments. Cash equivalents are investments in high-grade, short-term securities (original maturity less than three months), placed with financially sound institutions. Accounts receivable are from a diverse group of customers including individuals and small and large companies in various industries. As of December 31, 2018 and September 30, 2018 , no single customer accounted for more than 5% of the total accounts receivable balance. The Company maintains certain credit standards with its customers and requires a customer deposit if such evaluation warrants.

Subsequent Events

Subsequent Events	3 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 2, 2019, Roanoke Gas entered into an agreement to issue notes in the aggregate principal amount of $10 million . These notes are scheduled to be issued on the day of closing currently proposed for March 28, 2019. These notes will have a 12 -year term from the date of issue with a fixed interest rate of 4.41% . Proceeds from these notes will be used to refinance a portion of Roanoke Gas' debt under the line-of-credit. The Company has evaluated subsequent events through the date the financial statements were issued. There were no items not otherwise disclosed above which would have materially impacted the Company’s condensed consolidated financial statements.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation RGC Resources, Inc. is an energy services company primarily engaged in the sale and distribution of natural gas. The consolidated financial statements include the accounts of RGC Resources, Inc. ("Resources" or the "Company") and its wholly-owned subsidiaries: Roanoke Gas Company; Diversified Energy Company; and RGC Midstream, LLC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly Resources' financial position as of December 31, 2018 and the results of its operations, cash flows, comprehensive income and changes in stockholders' equity for the three months ended December 31, 2018 and 2017 . The results of operations for the three months ended December 31, 2018 are not indicative of the results to be expected for the fiscal year ending September 30, 2019 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months. The unaudited condensed consolidated interim financial statements and condensed notes are presented as permitted under the rules and regulations of the Securities and Exchange Commission. Pursuant to those rules, certain information and note disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information not misleading. Therefore, the condensed consolidated financial statements and condensed notes should be read in conjunction with the financial statements and notes contained in the Company’s Form 10-K for the year ended September 30, 2018 . The September 30, 2018 balance sheet was included in the Company’s audited financial statements included in Form 10-K. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant accounting policies are described in Note 1 to the consolidated financial statements in Form 10-K for the year ended September 30, 2018 . Newly adopted and newly issued accounting standards are discussed below. Certain reclassifications have been made to the prior year income statements to be consistent with the current year presentation by moving cost of gas - utility and cost of sales - non utility under the operating expenses caption. This reclassification makes the Company's income statement presentation consistent with industry peers.
Recently Issued or Adopted Accounting Standards	Recently Issued or Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that affects any entity that enters into contracts with customers for the transfer of goods or services or transfer of non-financial assets. This guidance supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, the entity satisfies the performance obligation. Subsequently issued ASUs provided additional guidance to assist in the implementation of the new revenue standard. The standard is effective for the Company's annual reporting period ending September 30, 2019 and interim periods within that annual period. The Company adopted ASU 2014-09 and all amendments in the quarter ended December 31, 2018. Consistent with the modified retrospective adoption method, prior reporting period results remain unchanged and reported in accordance with ASC 605. As it relates to the Company’s contracts to deliver natural gas to customers, the guidance in ASC 606 is consistent with the guidance in ASC 605; therefore, the modified retrospective approach resulted in no cumulative catch-up to retained earnings. Furthermore, there was no significant impact to revenues recognized for the quarter ended December 31, 2018 and no significant changes to the Company’s related business processes, systems or internal controls over financial reporting because of the new guidance. See Note 2 for further information related to the new standard. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments to provide users of the financial statements with more useful information through several provisions, including the following: (1) requires equity investments, excluding investments accounted for under the equity method, be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values, (3) eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The Company adopted the ASU for the quarter ended December 31, 2018. The new guidance did not have a material effect on the Company's financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU leaves the accounting for leases mostly unchanged for lessors, with the exception of targeted improvements for consistency; however, the new guidance requires lessees to recognize assets and liabilities for leases with terms of more than 12 months. The ASU also revises the definition of a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Consistent with current GAAP, the presentation and cash flows arising from a lease by a lessee will primarily depend on its classification as a finance or operating lease. In contrast, the new ASU requires both types of leases to be recognized on the balance sheet. In addition, the new guidance includes quantitative and qualitative disclosure requirements to aid financial statement users in better understanding the amount, timing and uncertainty of cash flows arising from leases. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. In January 2018, the FASB issued ASU 2018-01, which provides a practical expedient that allows entities the option of not evaluating existing land easements under the new lease standard for those easements that were entered into prior to adoption. New or modified land easements will require evaluation on a prospective basis. The Company has completed its inventory of leases and does not currently expect the new gudiance to have a material effect on its financial position, results of operations or cash flows. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits . The primary objective of this guidance is to improve the financial statement presentation of net periodic pension and postretirement benefit costs; however, it also changes which cost components are eligible for capitalization. The amendments in the ASU require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and, if a subtotal for income from operations is presented, outside of income from operations. The Company adopted the new guidance effective October 1, 2018. As a result, the Company now presents the other components of net periodic benefit costs outside of operations under the category of "other income (expense), net" in the condensed consolidated income statement. As the new guidance related to the expense classification was implemented on a retrospective basis, adjustments were made to the prior period financial statements as follow: Three Months Ended December 31, 2017 As Previously Reported Effect of Change As Adjusted Operations and maintenance $ 3,197,111 $ 30,633 $ 3,227,744 Total operating expenses 15,080,927 30,633 15,111,560 Operating income 3,675,124 (30,633 ) 3,644,491 Other income (expense), net (16,132 ) 30,633 14,501 Income before income taxes $ 3,195,158 $ — $ 3,195,158 In addition, the ASU allows only the service cost component of net periodic benefit cost to be eligible for capitalization when applicable. Previously, the Company included all components of net periodic benefit costs for capitalization. Management has had discussions with its state regulators regarding the adoption of this ASU for regulatory purposes. The regulatory body has not taken a position on the change in capitalization requirements for these benefit costs and will evaluate the impact of this ASU on a case by case basis. The Company adopted the capitalization change prospectively on October 1, 2018. If the regulatory body ultimately determines that changes to the capitalization of these retirement benefits is not appropriate for regulatory purposes, the Company may have to establish regulatory assets or liabilities for those costs or benefits excluded from capitalization under this ASU. The adoption of this new guidance does not have a material effect on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting For Hedging Activities . The ASU is meant to simplify recognition and presentation guidance in an effort to improve financial reporting of cash flow and fair value hedging relationships to better portray the economic results of an entity's risk management activities. This is achieved through changes to both the designation and measurement guidance for qualifying hedging relationships, as well as changes to the presentation of hedge results. The new guidance is effective for the Company for the annual reporting period ending September 30, 2020 and interim periods within that annual period. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, it does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new guidance is effective for the Company for the annual reporting period ending September 30, 2021. Early adoption is permitted. Management has not completed its evaluation of the new guidance; however, the ASU only modifies disclosure requirements and will not effect financial position, results of operations or cash flows. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs incurred in a Cloud Computing Arrangement that is a Service Contract . This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement and aligns the following requirements to capitalize implementation costs: 1) those incurred in a hosting arrangement that is a service contract, and 2) those incurred to develop or obtain internal-use software, including hosting arrangements that include an internal software license. The new guidance is effective for the Company for the annual reporting period beginning October 1, 2020. Management has not completed its evaluation of the new guidance; however, it believes the new guidance will change the future treatment of certain contracts by allowing related implementation costs to be capitalized and amortized over time, rather than directly expensed. Management does not currently expect the new guidance to have a material effect on its financial position, results of operations or cash flows. Other accounting standards that have been issued by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Adjustments to Prior Period Financial Statements	As the new guidance related to the expense classification was implemented on a retrospective basis, adjustments were made to the prior period financial statements as follow: Three Months Ended December 31, 2017 As Previously Reported Effect of Change As Adjusted Operations and maintenance $ 3,197,111 $ 30,633 $ 3,227,744 Total operating expenses 15,080,927 30,633 15,111,560 Operating income 3,675,124 (30,633 ) 3,644,491 Other income (expense), net (16,132 ) 30,633 14,501 Income before income taxes $ 3,195,158 $ — $ 3,195,158

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following tables summarize revenue by customer, product and income statement classification: Three months ended December 31, 2018 Three months ended December 31, 2017 Gas utility Non utility Total operating revenues Gas utility Non utility Total operating revenues Natural Gas (Billed and Unbilled): Residential $ 13,012,592 $ — $ 13,012,592 $ 11,233,500 $ — $ 11,233,500 Commercial 7,342,702 — 7,342,702 6,306,857 — 6,306,857 Industrial and Transportation 1,226,137 — 1,226,137 1,124,657 — 1,124,657 Revenue reductions (TCJA) (1) (523,881 ) — (523,881 ) (462,442 ) — (462,442 ) Other 226,492 180,166 406,658 245,262 236,057 481,319 Total contracts with customers 21,284,042 180,166 21,464,208 18,447,834 236,057 18,683,891 Alternative Revenue Programs (247,461 ) — (247,461 ) 72,160 — 72,160 Total operating revenues $ 21,036,581 $ 180,166 $ 21,216,747 $ 18,519,994 $ 236,057 $ 18,756,051 (1) Accrued refund associated with excess revenue collected in tariff rates associated with the reduction in federal income tax rates. See Note 4 for more information.
Schedule of Customer Accounts Receivable	The balances of customer receivables are provided below: Assets (current) Liabilities (current) Trade accounts receivable (1) Unbilled revenue (1) Customer credit balances Customer deposits Balance at September 30, 2018 $ 2,675,611 $ 913,087 $ 1,003,622 $ 1,421,043 Balance at December 31, 2018 7,676,308 3,784,863 809,289 1,562,217 Increase (decrease) $ 5,000,697 $ 2,871,776 $ (194,333 ) $ 141,174 (1) Included in "Accounts receivable, net" in the condensed consolidated balance sheet. Amounts shown net of reserve for bad debts.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	A reconciliation of income tax expense from applying the federal statutory rates in effect for each period to total income tax expense is presented below: Three Months Ended December 31, 2018 2017 Income before income taxes $ 3,136,375 $ 3,195,158 Corporate federal tax rate 21.00 % 24.30 % Income tax expense computed at the federal statutory rate $ 658,639 $ 776,423 State income taxes, net of federal tax benefit 150,589 146,087 Net amortization of excess deferred taxes on regulated operations (86,208 ) — Revaluation of unregulated deferred taxes — 206,830 Other, net (20,807 ) 6,356 Total income tax expense $ 702,213 $ 1,135,696 Effective tax rate 22.4 % 35.5 %

Other Investments (Tables)

Other Investments (Tables)	3 Months Ended
	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Other Investments	The financial statement locations of the investment in the LLC are as follows: Balance Sheet Location of Other Investments: December 31, 2018 September 30, 2018 Other Assets: Investment in MVP $ 32,629,235 $ 28,387,031 Investment in Southgate 188,046 120,115 Investment in unconsolidated affiliates $ 32,817,281 $ 28,507,146 Current Liabilities: MVP $ 3,679,154 $ 10,022,652 Southgate 67,932 120,114 Capital contributions payable $ 3,747,086 $ 10,142,766 Three Months Ended Income Statement Location of Other Investments: December 31, 2018 December 31, 2017 Equity in earnings of unconsolidated affiliate $ 563,049 $ 148,811

Derivatives and Hedging (Tables

Derivatives and Hedging (Tables)	3 Months Ended
	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Values of Derivative Instrument	The table below reflects the fair values of the derivative instrument and its corresponding classification in the condensed consolidated balance sheet: December 31, 2018 September 30, 2018 Derivative designated as hedging instrument: Current assets: Interest rate swap $70,922 $100,723 Other assets: Interest rate swap $130,023 $209,840 Total derivatives designed as hedging instruments $200,945 $310,563

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	Long-term debt consists of the following: December 31, 2018 September 30, 2018 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Roanoke Gas Company: Unsecured senior notes payable, at 4.26% due on September 18, 2034 $ 30,500,000 $ 152,052 $ 30,500,000 $ 154,465 Unsecured term note payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 7,000,000 9,449 7,000,000 10,283 Unsecured term notes payable, at 3.58% due on October 2, 2027 8,000,000 42,139 8,000,000 43,343 RGC Midstream, LLC: Unsecured term notes payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 28,087,200 65,947 17,743,200 74,190 Total notes payable $ 73,587,200 $ 269,587 $ 63,243,200 $ 282,281 Line-of-credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 $ 15,801,798 $ — $ 7,361,017 $ — Total long-term debt $ 89,388,998 $ 269,587 $ 70,604,217 $ 282,281

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	3 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Summary of Other Comprehensive Income and Loss	A summary of other comprehensive income and loss is provided below: Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Three Months Ended December 31, 2018 Interest rate swap: Unrealized losses $ (93,956 ) $ 24,184 $ (69,772 ) Transfer of realized gains to interest expense (15,662 ) 4,031 (11,631 ) Net interest rate swap (109,618 ) 28,215 (81,403 ) Defined benefit plans: Amortization of actuarial gains (2,576 ) 663 (1,913 ) Other comprehensive loss $ (112,194 ) $ 28,878 $ (83,316 ) Three Months Ended December 31, 2017 Interest rate swap: Unrealized gains $ 61,581 $ (17,760 ) $ 43,821 Transfer of realized losses to interest expense 1,158 (334 ) 824 Net interest rate swap 62,739 (18,094 ) 44,645 Defined benefit plans: Amortization of actuarial gains (5,971 ) 1,722 (4,249 ) Other comprehensive income $ 56,768 $ (16,372 ) $ 40,396
Reconciliation of Other Accumulated Other Comprehensive Income (Loss)	Reconciliation of Other Accumulated Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Balance at September 30, 2018 $ (871,668 ) Other comprehensive loss (83,316 ) Balance at December 31, 2018 $ (954,984 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share Reconciliation	A reconciliation of basic and diluted earnings per share is presented below: Three Months Ended December 31, 2018 2017 Net Income $ 2,434,162 $ 2,059,462 Weighted average common shares 8,003,736 7,248,094 Effect of dilutive securities: Options to purchase common stock 48,261 48,086 Diluted average common shares 8,051,997 7,296,180 Earnings Per Share of Common Stock: Basic $ 0.30 $ 0.28 Diluted $ 0.30 $ 0.28

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost	Net pension plan and postretirement plan expense is detailed as follows: Three Months Ended December 31, 2018 2017 Components of net periodic pension cost: Service cost $ 134,317 $ 166,309 Interest cost 291,682 272,045 Expected return on plan assets (387,359 ) (465,710 ) Recognized loss 39,650 87,758 Net periodic pension cost $ 78,290 $ 60,402 Three Months Ended December 31, 2018 2017 Components of postretirement benefit cost: Service cost $ 33,221 $ 41,805 Interest cost 162,236 160,151 Expected return on plan assets (136,805 ) (155,845 ) Recognized loss 30,951 70,967 Net postretirement benefit cost $ 89,603 $ 117,078
Summary of Employer Contributions to Defined Benefit Plans	The table below reflects the Company's actual contributions made fiscal year-to-date and the expected contributions to be made during the balance of the current fiscal year. Fiscal Year-to-Date Contributions Remaining Fiscal Year Contributions Defined benefit pension plan $ 400,000 $ 400,000 Postretirement medical plan — 300,000 Total $ 400,000 $ 700,000

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis	The following table summarizes the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as required by existing guidance and the fair value measurements by level within the fair value hierarchy as of December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 200,945 $ — $ 200,945 $ — Total $ 200,945 $ — $ 200,945 $ — Liabilities: Natural gas purchases $ 749,564 $ — $ 749,564 $ — Total $ 749,564 $ — $ 749,564 $ — Fair Value Measurements - September 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap $ 310,563 $ — $ 310,563 $ — Total $ 310,563 $ — $ 310,563 $ — Liabilities: Natural gas purchases $ 693,495 $ — $ 693,495 $ — Total $ 693,495 $ — $ 693,495 $ —
Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value	The following table summarizes the fair value of the Company’s financial assets and liabilities that are not adjusted to fair value in the financial statements as of December 31, 2018 and September 30, 2018 : Fair Value Measurements - December 31, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 73,587,200 $ — $ — $ 72,219,484 Total $ 73,587,200 $ — $ — $ 72,219,484 Fair Value Measurements - September 30, 2018 Carrying Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Notes payable $ 63,243,200 $ — $ — $ 62,435,237 Total $ 63,243,200 $ — $ — $ 62,435,237

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operations and maintenance	$ 3,521,999	$ 3,227,744
Total operating expenses	17,952,525	15,111,560
Operating income	3,264,222	3,644,491
Other income (expense), net	125,886	14,501
Income before income taxes	$ 3,136,375	3,195,158
As Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operations and maintenance		3,197,111
Total operating expenses		15,080,927
Operating income		3,675,124
Other income (expense), net		(16,132)
Income before income taxes		3,195,158
Effect of Change [Member] | ASU 2017-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operations and maintenance		30,633
Total operating expenses		30,633
Operating income		(30,633)
Other income (expense), net		30,633
Income before income taxes		$ 0

Revenue (Disaggregation of Reve

Revenue (Disaggregation of Revenue) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total contracts with customers	$ 21,464,208	$ 18,683,891
Revenue reductions (TCJA)	(523,881)	(462,442)
Alternative Revenue Programs	(247,461)	72,160
Operating revenues	21,216,747	18,756,051
Natural Gas [Member] | Residential [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	13,012,592	11,233,500
Natural Gas [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	7,342,702	6,306,857
Natural Gas [Member] | Industrial and Transportation [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	1,226,137	1,124,657
Other [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	406,658	481,319
Gas Utility [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	21,284,042	18,447,834
Revenue reductions (TCJA)	(523,881)	(462,442)
Alternative Revenue Programs	(247,461)	72,160
Operating revenues	21,036,581	18,519,994
Gas Utility [Member] | Natural Gas [Member] | Residential [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	13,012,592	11,233,500
Gas Utility [Member] | Natural Gas [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	7,342,702	6,306,857
Gas Utility [Member] | Natural Gas [Member] | Industrial and Transportation [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	1,226,137	1,124,657
Gas Utility [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	226,492	245,262
Non Utility [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	180,166	236,057
Revenue reductions (TCJA)	0	0
Alternative Revenue Programs	0	0
Operating revenues	180,166	236,057
Non Utility [Member] | Natural Gas [Member] | Residential [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	0	0
Non Utility [Member] | Natural Gas [Member] | Commercial [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	0	0
Non Utility [Member] | Natural Gas [Member] | Industrial and Transportation [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	0	0
Non Utility [Member] | Other [Member]
Disaggregation of Revenue [Line Items]
Total contracts with customers	$ 180,166	$ 236,057

Revenue (Customer Accounts Rece

Revenue (Customer Accounts Receivable) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Unbilled revenue	$ 3,784,863	$ 913,087
Increase (decrease) in Unbilled revenue	2,871,776
Customer credit balances	809,289	1,003,622
Increase (decrease) in Customer credit balances	(194,333)
Customer deposits	1,562,217	1,421,043
Increase (decrease) in Customer deposits	141,174
Capitalized Contract Cost [Line Items]
Accounts receivable	11,715,432	3,913,830
Trade Accounts Receivable [Member]
Capitalized Contract Cost [Line Items]
Accounts receivable	7,676,308	$ 2,675,611
Increase (decrease) in accounts receivable	$ 5,000,697

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Blended tax rate	21.00%	24.30%	24.30%

Income Taxes (Reconciliation of

Income Taxes (Reconciliation of Income Tax Expense Based on Federal Statutory Rate) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Income Tax Contingency [Line Items]
Effective tax rate	25.74%
Income before income taxes	$ 3,136,375	$ 3,195,158
Corporate federal tax rate	21.00%	24.30%	24.30%
Income tax expense computed at the federal statutory rate	$ 658,639	$ 776,423
State income taxes, net of federal tax benefit	150,589	146,087
Net amortization of excess deferred taxes on regulated operations	(86,208)	0
Revaluation of unregulated deferred taxes	0	206,830
Other, net	(20,807)	6,356
Total income tax expense	$ 702,213	$ 1,135,696
Effective tax rate [Member]
Income Tax Contingency [Line Items]
Effective tax rate	22.40%	35.50%

Rates and Regulatory Matters Ra

Rates and Regulatory Matters Rates and Regulatory Matters (Details) - USD ($)	Oct. 02, 2018	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Regulatory Liabilities [Line Items]
Reduction in deferred tax liability resulting from the Tax Act		$ 10,829,440		$ 11,447,736
Combined state and federal rate		25.74%
Roanoke Gas Company [Member]
Regulatory Liabilities [Line Items]
Reduction in deferred tax liability resulting from the Tax Act		$ 11,293,801
Regulatory liability, refund period (in years)		28 years
Customer refund liability, increase		$ 523,881	$ 462,442
Rate refund		$ 1,882,508
Roanoke Gas Company [Member] | General Rate Case [Member] | Virginia State Corporate Commission (SCC) [Member]
Regulatory Liabilities [Line Items]
Requested non-gas rates increase	$ 10,500,000
SAVE Program component of requested non-gas rates increase (in dollars)	$ 4,700,000

Other Investments (Narrative) (

Other Investments (Narrative) (Details) Bcf in Millions	1 Months Ended		3 Months Ended
	Apr. 30, 2018USD ($)mi	Oct. 31, 2015USD ($)debt_instrumentBcf	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)
Investment [Line Items]
Capital contributions payable term			3 months
Capital contributions payable			$ 3,747,086	$ 10,142,766
Non-cash change in investment in unconsolidated affiliates			(6,395,680)
MVP [Member]
Investment [Line Items]
Capital contributions payable			3,679,154	10,022,652
Southgate [Member]
Investment [Line Items]
Capital contributions payable			$ 67,932	$ 120,114
Midstream [Member]
Investment [Line Items]
Number of unsecured Promissory Notes funding the investment | debt_instrument		2
Debt term		5 years
Midstream [Member] | MVP [Member]
Investment [Line Items]
Equity interest percentage		1.00%
Pipeline capacity per day (in bcf) | Bcf		2
Total project cost		$ 4,600,000,000
Total estimated investment		$ 46,000,000
Midstream [Member] | Southgate [Member]
Investment [Line Items]
Length of planned natural gas pipeline (in miles) | mi	70
Ownership percentage (less than)	1.00%
Midstream [Member] | Southgate [Member] | Minimum [Member]
Investment [Line Items]
Estimated total MVP Southgate pipeline cost projection	$ 350,000,000
Estimated investment in MVP Southgate	1,800,000
Midstream [Member] | Southgate [Member] | Maximum [Member]
Investment [Line Items]
Estimated total MVP Southgate pipeline cost projection	500,000,000
Estimated investment in MVP Southgate	$ 2,500,000

Other Investments (Schedule of

Other Investments (Schedule of Other Investments) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Other Assets:
Investment in unconsolidated affiliates	$ 32,817,281		$ 28,507,146
Current Liabilities:
Capital contributions payable	3,747,086		10,142,766
Income Statement Location of Other Investments:
Equity in earnings of unconsolidated affiliate	563,049	$ 148,811
MVP [Member]
Other Assets:
Investment in MVP	32,629,235		28,387,031
Current Liabilities:
Capital contributions payable	3,679,154		10,022,652
Southgate [Member]
Other Assets:
Investment in Southgate	188,046		120,115
Current Liabilities:
Capital contributions payable	$ 67,932		$ 120,114

Derivatives and Hedging (Narrat

Derivatives and Hedging (Narrative) (Details)	Dec. 31, 2018USD ($)instrument_held
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of interest rate swap associated with the term note | instrument_held	1
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Debt instrument, borrowing amount | $	$ 7,000,000
Effective interest rate	2.30%

Derivatives and Hedging (Schedu

Derivatives and Hedging (Schedule of Fair Value of Marked-to-Market Transactions) (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate swap, current assets	$ 70,922	$ 100,723
Interest rate swap, other assets	130,023	209,840
Total derivatives designated as hedging instruments	$ 200,945	$ 310,563

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details)	Jan. 02, 2019USD ($)	Oct. 31, 2015debt_instrument	Dec. 31, 2018USD ($)instrument_held
Debt Instrument [Line Items]
Maximum percentage of Consolidated Long Term Indebtedness to Consolidated Total Capitalization			65.00%
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member]
Debt Instrument [Line Items]
Effective interest rate			2.30%
Debt instrument, borrowing amount			$ 7,000,000
Maximum percentage of Priority Indebtedness to Consolidated Total Assets			15.00%
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | 30-day LIBOR [Member]
Debt Instrument [Line Items]
Variable rate basis points (as a percent)			0.90%
Roanoke Gas [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 3.58%, due October 2, 2027 [Member]
Debt Instrument [Line Items]
Stated percentage rate			3.58%
Maximum percentage of Priority Indebtedness to Consolidated Total Assets			15.00%
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member]
Debt Instrument [Line Items]
Debt term			2 years
Availability fee (as a percent)			0.15%
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member] | 30-day LIBOR [Member]
Debt Instrument [Line Items]
Variable rate basis points (as a percent)			1.00%
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing limit			$ 25,000,000
Roanoke Gas [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing limit			$ 17,000,000
Midstream [Member]
Debt Instrument [Line Items]
Debt term		5 years
Number of unsecured Promissory Notes funding the investment | debt_instrument		2
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member]
Debt Instrument [Line Items]
Number of unsecured Promissory Notes funding the investment | instrument_held			2
Maximum percentage of Priority Indebtedness to Consolidated Total Assets			15.00%
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | 30-day LIBOR [Member]
Debt Instrument [Line Items]
Variable rate basis points (as a percent)			1.35%
Midstream [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, borrowing amount			$ 38,000,000
Subsequent Event [Member] | Roanoke Gas [Member] | Unsecured Term Notes [Member]
Debt Instrument [Line Items]
Debt term	12 years
Debt instrument, borrowing amount	$ 10,000,000
Stated percentage rate	4.41%

Long-Term Debt (Schedule of Lon

Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Debt Instrument [Line Items]
Notes payable	$ 73,587,200	$ 63,243,200
Principal	89,388,998	70,604,217
Unamortized Debt Issuance Costs	269,587	282,281
Notes Payable [Member]
Debt Instrument [Line Items]
Notes payable	73,587,200	63,243,200
Unamortized Debt Issuance Costs	269,587	282,281
Roanoke Gas Company [Member] | Unsecured Senior Notes [Member] | Unsecured Senior Notes Payable, at 4.26%, due on September 18, 2034 [Member]
Debt Instrument [Line Items]
Notes payable	30,500,000	30,500,000
Unamortized Debt Issuance Costs	$ 152,052	154,465
Stated percentage rate	4.26%
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member]
Debt Instrument [Line Items]
Notes payable	$ 7,000,000	7,000,000
Unamortized Debt Issuance Costs	$ 9,449	10,283
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 0.90%, due November 1, 2021 [Member] | 30-day LIBOR [Member]
Debt Instrument [Line Items]
Variable rate basis points (as a percent)	0.90%
Roanoke Gas Company [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 3.58%, due October 2, 2027 [Member]
Debt Instrument [Line Items]
Notes payable	$ 8,000,000	8,000,000
Unamortized Debt Issuance Costs	$ 42,139	43,343
Stated percentage rate	3.58%
Roanoke Gas Company [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member]
Debt Instrument [Line Items]
Line-of-credit	$ 15,801,798	7,361,017
Unamortized Debt Issuance Costs	$ 0	0
Roanoke Gas Company [Member] | Line of Credit [Member] | Line of Credit, at 30-day LIBOR plus 1.00%, due March 31, 2020 [Member] | 30-day LIBOR [Member]
Debt Instrument [Line Items]
Variable rate basis points (as a percent)	1.00%
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member]
Debt Instrument [Line Items]
Notes payable	$ 28,087,200	17,743,200
Unamortized Debt Issuance Costs	$ 65,947	$ 74,190
RGC Midstream LLC [Member] | Unsecured Term Notes [Member] | Unsecured Term Notes Payable, at 30-day LIBOR plus 1.35%, due December 29, 2020 [Member] | 30-day LIBOR [Member]
Debt Instrument [Line Items]
Variable rate basis points (as a percent)	1.35%

Other Comprehensive Income (Sch

Other Comprehensive Income (Schedule of Other Comprehensive Income and Loss) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Before-Tax Amount
Other comprehensive loss	$ (112,194)	$ 56,768
Tax (Expense) or Benefit
Other comprehensive loss	28,878	(16,372)
Net-of-Tax Amount
Other comprehensive loss	(83,316)	40,396
Interest rate swap [Member]
Before-Tax Amount
Other comprehensive income before reclassifications	(93,956)	61,581
Reclassifications from accumulated other comprehensive income	(15,662)	1,158
Other comprehensive loss	(109,618)	62,739
Tax (Expense) or Benefit
Other comprehensive income before reclassifications	24,184	(17,760)
Reclassifications from accumulated other comprehensive income	4,031	(334)
Other comprehensive loss	28,215	(18,094)
Net-of-Tax Amount
Other comprehensive income before reclassifications	(69,772)	43,821
Reclassifications from accumulated other comprehensive income	(11,631)	824
Other comprehensive loss	(81,403)	44,645
Defined benefit plans [Member]
Before-Tax Amount
Other comprehensive loss	(2,576)	(5,971)
Tax (Expense) or Benefit
Other comprehensive loss	663	1,722
Net-of-Tax Amount
Other comprehensive loss	$ (1,913)	$ (4,249)

Other Comprehensive Income (Rec

Other Comprehensive Income (Reconciliation of Accumulated Comprehensive Income (Loss)) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 79,583,112	$ 60,040,472
Other comprehensive loss	(83,316)	40,396
Balance at end of period	80,959,740	61,301,035
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Other Accumulated Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(871,668)	(1,202,264)
Other comprehensive loss	(83,316)	40,396
Balance at end of period	$ (954,984)	$ (1,161,868)

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Dec. 31, 2018pipeline
Commitments and Contingencies Disclosure [Abstract]
Number of pipelines serving Roanoke Gas	2

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net Income	$ 2,434,162	$ 2,059,462
Weighted average common shares (in shares)	8,003,736	7,248,094
Effect of dilutive securities:
Options to purchase common stock (in shares)	48,261	48,086
Diluted average common shares (in shares)	8,051,997	7,296,180
Earnings Per Share of Common Stock:
Basic (in dollars per share)	$ 0.30	$ 0.28
Diluted (in dollars per share)	$ 0.30	$ 0.28

Employee Benefit Plans (Schedul

Employee Benefit Plans (Schedule of Components of Net Periodic Pension and Postretirement Benefit Cost) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 134,317	$ 166,309
Interest cost	291,682	272,045
Expected return on plan assets	(387,359)	(465,710)
Recognized loss	39,650	87,758
Net periodic/postretirement pension/benefit cost	78,290	60,402
Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	33,221	41,805
Interest cost	162,236	160,151
Expected return on plan assets	(136,805)	(155,845)
Recognized loss	30,951	70,967
Net periodic/postretirement pension/benefit cost	$ 89,603	$ 117,078

Employee Benefit Plans (Sched_2

Employee Benefit Plans (Schedule of Actual and Expected Employer Contributions) (Details)	3 Months Ended
	Dec. 31, 2018USD ($)
Defined Benefit Plan Disclosure [Line Items]
Fiscal Year-to-Date Contributions	$ 400,000
Remaining Fiscal Year Contributions	700,000
Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Fiscal Year-to-Date Contributions	400,000
Remaining Fiscal Year Contributions	400,000
Postretirement Medical Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Fiscal Year-to-Date Contributions	0
Remaining Fiscal Year Contributions	$ 300,000

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis) (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Assets:
Interest rate swap	$ 200,945	$ 310,563
Liabilities:
Natural gas purchases	749,564	693,495
Interest Rate Swap [Member]
Assets:
Interest rate swap	200,945	310,563
Quoted Prices in Active Markets (Level 1) [Member]
Assets:
Interest rate swap	0	0
Liabilities:
Natural gas purchases	0	0
Quoted Prices in Active Markets (Level 1) [Member] | Interest Rate Swap [Member]
Assets:
Interest rate swap	0	0
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Interest rate swap	200,945	310,563
Liabilities:
Natural gas purchases	749,564	693,495
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap [Member]
Assets:
Interest rate swap	200,945	310,563
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Interest rate swap	0	0
Liabilities:
Natural gas purchases	0	0
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap [Member]
Assets:
Interest rate swap	$ 0	$ 0

Fair Value Measurements (Summar

Fair Value Measurements (Summary of the Fair Value of Financial Assets and Liabilities Not Adjusted to Fair Value) (Details) - USD ($)	Dec. 31, 2018	Sep. 30, 2018
Quoted Prices in Active Markets (Level 1) [Member]
Liabilities:
Notes payable	$ 0	$ 0
Total	0	0
Significant Other Observable Inputs (Level 2) [Member]
Liabilities:
Notes payable	0	0
Total	0	0
Significant Unobservable Inputs (Level 3) [Member]
Liabilities:
Notes payable	72,219,484	62,435,237
Total	72,219,484	62,435,237
Carrying Value [Member]
Liabilities:
Notes payable	73,587,200	63,243,200
Total	$ 73,587,200	$ 63,243,200

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] - Roanoke Gas [Member] - Unsecured Term Notes [Member]	Jan. 02, 2019USD ($)
Subsequent Event [Line Items]
Aggregate principal amount	$ 10,000,000
Debt term	12 years
Stated percentage rate	4.41%