Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q3 2024 Earnings Presentation
16 slides from Mdu Resources's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter Earnings Call
Third Quarter Earnings Call November 7, 2024 1
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements The information in this presentation highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company’s businesses. Many of these highlighted statements and other state
Slide 3: Leadership Team
Leadership Team Nicole Kivisto Rob Johnson President & CEO WBI Energy President Jason Vollmer Garret Senger Vice President, CFO & Treasurer Utilities Group Chief Utilities Officer Stephanie Sievert Vice President, CAO & Controller 3
Slide 4: Segment Outlook
Segment Outlook 4
Slide 5: Compelling Investment Opportunity
Compelling Investment Opportunity • Pure-play regulated energy delivery business • Focusing on our “CORE” • Extensive operational diversification • Supportive regulatory environment • Experienced management team with proven track record • 6-8% long-term EPS growth rate • 60-70% annual dividend payou
Slide 6: Focusing on our "CORE"
Focusing on our “CORE” MDU Resources is now a pure-play regulated entity focused on its original “CORE” energy delivery business Customers & Operational Returns Employee Communities Excellence Focused Driven Long history of providing regulated energy delivery service 2023 marked 75th year of 2024 ma
Slide 7: Electric & Natural Gas Outlook
Electric & Natural Gas Outlook • 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 • Construction of the company’s new Heskett IV, 88-MW simple-cycle combustion tu
Slide 8: Regulatory Update
Regulatory Update Annual Revenue Increase Annual Revenue Increase Business State Filing Date Status (%) (in millions) Filed cases with requested rates Pending Natural Gas Washington March 29, 2024 11.6% $43.8M Effective March 1, 2025 Distribution 2.8% $11.7M Effective March 1, 2026 Natural Gas Pendi
Slide 9: Approach on Data Centers
Approach on Data Centers • Minimal capital investment Currently 3 data • ROE accretive centers in 2 locations within service territory • Beneficial to all parties • Data center purchasing energy from MISO • Reduces transmission charge to existing customers • Allows previously stranded power to reach
Slide 10: Pipeline Outlook
Pipeline Outlook • Will continue to benefit from expansion projects placed in service in late 2023 and throughout 2024 • Line Section 28 expansion project was placed in service on July 1, 2024, and serves a natural gas-fired power plant. The project added 137 million cubic feet of natural gas transp
Slide 11: Increased and Narrowed 2024 Guidance
Increased and Narrowed 2024 Guidance Regulated Energy Delivery Previous New Earnings guidance in the range of $170 Earnings guidance in the range of $180 million to $180 million million to $185 million Guidance as of November 7, 2024 11
Slide 12: Financial Results
Kod Ying! Mma Financial Results
Slide 13: MDU Resources Group, Inc Third Quarter Earnings
MDU Resources Group, Inc Third Quarter Earnings Earnings in millions Adjusted income from continuing GAAP Net Income operations1,2 $74.9 $65.5 $58.6 $64.6 $0.37 $0.32 $0.29 $0.32 Earnings EPS Earnings EPS 2023 2024 2023 2024 1 Adjusted to exclude costs associated with MDU Resources’ strategic initia
Slide 14: Electric & Natural Gas Utility
Electric & Natural Gas Utility Third Quarter Earnings • Earnings of $6.8 million GAAP EARNINGS $8 (in millions) • Electric earnings increased due to rate relief and higher volumes from warmer weather $6.8 • Natural gas distribution earnings increased due $6 to rate relief and higher investment retur
Slide 15: Pipeline
Pipeline Third Quarter Earnings • Record third quarter earnings of $15.1 GAAP EARNINGS million (in millions) $18 • Record third quarter transportation volumes largely from organic growth projects placed in $16 $15.1 service in late 2023 and throughout 2024 $14 $11.9 • Strong demand for natural gas s
Slide 16: Questions
Nis AN I¢@ EXCHANGE Es 16