Slide 1: First Quarter Earnings Call
May 6, 2021 FIRST QUARTER EARNINGS CALL JASON VOLLMER Vice President & Chief Financial Officer
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS During the course of 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 r
Slide 3: 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 4: First Quarter Earnings
FIRST QUARTER EARNINGS EARNINGS EPS 60 $0.30 $52.1 $0.26 50 $0.25 40 $0.20 millions 30 $0.15 $0.13 $25.1 20 $0.10 10 $0.05 0 $0.00 2020 2021 2020 2021
Slide 5: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY FIRST QUARTER EARNINGS Reported earnings of $46.9 million EARNINGS – Rate relief and increased retail sales $60 volumes at the natural gas segment drove the increase in earnings $50 $46.9 $43.7 – Other income increased during the $40 quarter, primarily higher investm
Slide 6: Pipeline
PIPELINE FIRST QUARTER EARNINGS Reported record first quarter EARNINGS earnings of $8.9 million $10 $8.9 – Higher customer demand for natural gas storage services was the primary $7.4 contributor to the increase in earnings – Higher AFUDC and higher investment millions returns related to certain b
Slide 7: Construction Services
CONSTRUCTION SERVICES FIRST QUARTER EARNINGS Reported record first quarter earnings of EARNINGS $29.8 million $35 – Earnings increased as a result of higher outside $30 $29.8 specialty contracting workloads and margins, driven by strong utility customer demand $25 – Partially offsetting the increa
Slide 8: Construction Materials
CONSTRUCTION MATERIALS FIRST QUARTER EARNINGS Reported a lower seasonal loss of SEASONAL LOSS $30.8 million $0 2020 2021 – Gross margin increased during the quarter from higher materials pricing and contracting margins -$10 – Other income increased as a result of higher investment returns on certa
Slide 9: First Quarter Earnings Call
May 6, 2021 FIRST QUARTER EARNINGS CALL DAVE GOODIN President & Chief Executive Officer
Slide 10: Electric & Natural Gas Outlook
ELECTRIC & NATURAL GAS OUTLOOK Expects to grow rate base by 5% 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 recovery
Slide 11: Pipeline Outlook
PIPELINE OUTLOOK North Bakken Expansion project – Awaiting FERC approval, originally anticipated in first quarter 2021 – Adjusting construction schedule and project in-service date to reflect the delay in receiving final FERC approval – Length of project in-service delay is dependent on when FERC
Slide 12: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK First quarter revenues of nearly $519 million Record first quarter backlog of $1.273 billion as of March 31 2021 revenue guidance in a range of $2.1 billion to $2.3 billion with margins comparable to or slightly higher than 2020 levels Continues to see strong ou
Slide 13: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Record first quarter revenues of $265.7 million First quarter backlog of $819 million, compared to the prior year’s backlog of $905 million 2021 revenue guidance in a range of $2.1 billion to $2.3 billion with margins comparable to or slightly higher than 2020 le
Slide 14: 2021 EPS Guidance Updated
2021 EPS GUIDANCE UPDATED $2.00 - $2.15 Consolidated EPS Guidance Note: As of May 5, 2021 5 - 8% Long-Term Compound Annual Growth Rate Target 14
Slide 15: Capital Expenditures
CAPITAL EXPENDITURES Electric and natural gas utility − System infrastructure upgrades and $900.00 $46 replacements $800.00 − Natural gas combustion turbine $700.00 $34 Pipeline $202 $600.00 $35 $154 (millions) − North Bakken expansion $500.00 $150 Construction materials and services $230 $74
Slide 16: Dividend Growth
DIVIDEND $0.90 GROWTH $0.85 $0.85 83 consecutive years of quarterly dividend payments Dividend increased $0.80 November 2020, making 30 Annualized Dividend $0.77 consecutive years of increases $0.75 Annualized dividend $0.85 per share Member of S&P High-Yield $0.70 Dividend Aristocrats index
Slide 17: Questions
INVESTOR RELATIONS QUESTIONS