Slide 1: Second Quarter Earnings Call
July 31, 2019 SECOND QUARTER EARNINGS CALL JASON VOLLMER Vice President, Chief Financial Officer & Treasurer
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: Mission statement: create superior shareholder value
“ With integrity, create superior shareholder value by expanding upon our expertise to be the supplier of choice in all of our “ markets while being a safe and great place to work. 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 & Treasurer F. Trevor Hastings C D WBI Energy President & CEO C. Stephanie Barth Vice President, CAO & Controller G. Nicole Kivisto MDU EC D. Dave Ba
Slide 5: Second Quarter Earnings
SECOND QUARTER EARNINGS EARNINGS EPS $70 $0.40 $61.8 $60 $0.35 $0.31 $0.30 $50 $43.8 $0.25 $40 $0.22 millions $0.20 $30 $0.15 $20 $0.10 $10 $0.05 $0 $0.00 2018 2019 2018 2019 5
Slide 6: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY SECOND QUARTER EARNINGS EARNINGS $3 Reported earnings of $1.2 million – Increased operation and maintenance expense, depreciation, depletion and $2.3 amortization, the write-down of a non- utility investment and lower electric sales $2 volumes had a negative impact o
Slide 7: Pipeline & Midstream
PIPELINE & MIDSTREAM SECOND QUARTER EARNINGS EARNINGS $8 Reported earnings of $7.1 million $7.1 $7 – Record transportation volumes driven by organic growth projects placed in service in the second half of 2018 and $6 $5.7 higher rates from the recently filed FERC $5 rate case positively impacted t
Slide 8: Construction Services
CONSTRUCTION SERVICES SECOND QUARTER EARNINGS EARNINGS $25 Reported record second quarter $22.8 earnings of $22.8 million – Higher inside and outside specialty $20 contracting workloads from strong customer demand had a positive impact on the quarter millions – The earnings increase was partially
Slide 9: Construction Materials
CONSTRUCTION MATERIALS SECOND QUARTER EARNINGS EARNINGS Reported earnings of $29.2 million $35 – Contributions from acquisitions, higher aggregate and ready-mixed concrete $30 $29.2 volumes and construction revenues positively impacted the quarter $25 $24.3 – The increase in earnings was partially
Slide 10: Second Quarter Earnings Call
July 31, 2019 SECOND QUARTER EARNINGS CALL DAVE GOODIN President & Chief Executive Officer
Slide 11: Utility Electric & Natural Gas Outlook
UTILITY ELECTRIC & NATURAL GAS OUTLOOK Plans to file a request with the North Dakota Public Service Commission for an advanced determination of prudence on a proposed 88-megawatt simple-cycle, natural gas-fired peaking unit, which, if approved, is expected to be in service in 2023 Expects to gro
Slide 12: Pipeline & Midstream Outlook
PIPELINE & MIDSTREAM OUTLOOK Demicks Lake project – Will increase capacity, as designed, by 175 million cubic feet per day – Expected to be in service in fall 2019 Line Section 22 Expansion project – Will increase capacity, as designed, by 22.5 million cubic feet per day – Expected to be in serv
Slide 13: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Record second quarter backlog of $1.15 billion, up 30 percent from $888 million in 2018 2019 revenue guidance range increased to a range of $1.6 billion to $1.8 billion – Margins comparable to 2018 Demand for specialty contracting work in the following areas: – Hi
Slide 14: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK All-time record backlog of $1.04 billion, up 42 percent from $731 million in 2018 2019 revenue guidance range increased slightly to a range of $2.0 billion to $2.2 billion – Margins comparable to or slightly higher than 2018 Economic conditions are strengthening
Slide 15: 2019 EPS Guidance Updated
2019 EPS GUIDANCE UPDATED $1.45 - $1.60 Consolidated EPS Guidance Note: As of July 30, 2019 5 - 8% Long-Term Compound Annual Growth Rate Target 15
Slide 16: 2019-23 Capital Program
2019-23 CAPITAL Utility Construction Pipeline & Midstream PROGRAM $3,000 TOTAL CAPITAL FORECAST OF $2,740* Electric and natural gas utility − System infrastructure upgrades and $2,500 $473 replacements Pipeline and midstream − Demicks Lake project $2,000 − Line Section 22 expansion $787 millions
Slide 17: Dividend Growth
DIVIDEND $0.85 GROWTH $0.81 81 consecutive years of $0.80 quarterly dividend payments Dividend increased Annualized Dividend Rate November 2018, making 28 $0.75 consecutive years of increases 2018 annualized dividend $0.81 per share $0.70 $0.69 Member of S&P High-Yield Dividend Aristocrats i
Slide 18: Questions
INVESTOR RELATIONS QUESTIONS