Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — FY2022 Earnings Presentation
19 slides from Mdu Resources's earnings presentation, Feb 9, 2023
Slide 1: 2022 Year-End Earnings Call
February 9, 2023 2022 YEAR-END EARNINGS CALL
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS During this presentation, we will make certain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations and beliefs are based on reasonable assumptions, actual results may dif
Slide 3: Vision and Mission
Vision: With integrity, Building a Strong America® while being a great and safe place to work. Mission: Delivering superior value to stakeholders by providing essential infrastructure and services to America. 3
Slide 4: Leadership Team
LEADERSHIP TEAM A B A. Dave Goodin E. Jeff Thiede President & CEO MDU Construction Services Group President & CEO B. Jason Vollmer Vice President & CFO F. Trevor Hastings C D WBI Energy President & CEO C. Stephanie Barth Vice President, CAO & Controller G. Nicole Kivisto Utilities Group D. Dave Barn
Slide 5: Financial Results
Financial Results
Slide 6: 2022 Earnings: GAAP Earnings and EPS
MDU RESOURCES GROUP, INC. 2022 EARNINGS GAAP EARNINGS GAAP EPS $400 $2.00 $378.1 $367.5 $1.87 $1.81 $1.80 $1.60 $300 $1.40 $1.20 millions $200 $1.00 $0.80 $0.60 $100 $0.40 $0.20 $- $- 2021 2022 2021 2022 6
Slide 7: 2022 Earnings: Adjusted Earnings and EPS
MDU RESOURCES GROUP, INC. 2022 EARNINGS ADJUSTED EARNINGS ADJUSTED EPS $400 $2.00 $378.1 $380.2 $1.87 $1.87 $1.80 $1.60 $300 $1.40 $1.20 millions $200 $1.00 $0.80 $0.60 $100 $0.40 $0.20 $- $- 2021 2022 2021 2022 7
Slide 8: Electric & Natural Gas Utility 2022 Earnings
ELECTRIC & NATURAL GAS UTILITY 2022 EARNINGS Reported earnings of $102.3 million GAAP EARNINGS – Higher retail sales revenue due to rate $103.5 $102.3 relief in certain jurisdictions and higher $100 net transmission revenues, including increased investment $80 – Higher retail sales volumes due to
Slide 9: Pipeline 2022 Earnings
PIPELINE 2022 EARNINGS Reported earnings of $35.3 million GAAP EARNINGS $45 – Higher interest expense and lower $40.9 returns on nonqualified benefit plans $40 $35.3 $35 – Record transportation volumes for the $30 sixth consecutive year, largely from ongoing system growth, including the $25 millio
Slide 10: Construction Services 2022 Earnings
CONSTRUCTION SERVICES 2022 EARNINGS GAAP EARNINGS Record earnings of $124.8 million $140 $124.8 – Electrical and mechanical revenues $120 increased 50% for the year $109.4 $100 – Revenues were favorably impacted by progress on large hospitality, data center, $80 and renewable projects millions $60
Slide 11: Construction Materials 2022 Earnings
CONSTRUCTION MATERIALS 2022 EARNINGS Reported earnings of $116.2 million GAAP EARNINGS – Price adjustments in response to inflationary $140 $129.8 pressures improved performance in the second $120 $116.2 half of the year $100 – Slightly lower margin percentages mostly attributable to inflation $80
Slide 12: Segment Outlook
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Slide 13: Electric & Natural Gas Outlook
ELECTRIC & NATURAL GAS OUTLOOK Expects to grow rate base by 6-7% compounded annually over the next five years Safely meet customer demand by upgrading and expanding infrastructure and facilities Customer base expected to continue growing by 1- 2% annually Focused on timely regulatory recover
Slide 14: Pipeline Outlook
PIPELINE OUTLOOK North Bakken Expansion was placed in service in early 2022 2023 revenues are expected to increase by approximately $10 million, largely due to contracted volume commitment increases of approximately 70%, to 215 million cubic feet per day Filed a rate case with the Federal Ener
Slide 15: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Record backlog of $2.13 billion, 54% higher than 2021 backlog of $1.38 billion The Infrastructure Investment and Jobs Act and Inflation Reduction Act propose billions of dollars of investment for upgrades to electric and grid infrastructure, transportation systems,
Slide 16: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Record backlog of $935 million, 32% higher than 2021 backlog of $708 million Long-term opportunities from the Infrastructure Investment and Jobs Act and Inflation Reduction Act, providing billions of dollars for the repair and rebuilding of roads and bridges across
Slide 17: 2023 Guidance
2023 GUIDANCE Regulated Energy Delivery Businesses Earnings in the range of $140 million to $150 million Construction Services Revenues expected to be in the range of $2.75 billion to $2.95 billion in 2023, with higher margins compared to 2022. EBITDA in the range of $200 million to $225 mil
Slide 18: Annualized Dividend Growth
DIVIDEND $0.95 GROWTH $0.90 $0.89 Dividend increased November 2022, making 32 $0.85 consecutive years of increases Annualized Dividend 85 consecutive years of $0.80 quarterly dividend payments $0.77 Annualized dividend $0.89 $0.75 per share Member of S&P High-Yield Dividend Aristocrats index
Slide 19: Questions
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