Mdu Resources Group, Inc. · NYSE:MDU

Mdu Resources — Shareholder Meeting (May 2020)

19 slides from Mdu Resources's shareholder meeting presentation, May 12, 2020

  1. Slide 1: Annual Stockholder Meeting

    May 12, 2020 Annual Stockholder Meeting DAVID L. GOODIN President and CEO

  2. 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

  3. 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.

  4. Slide 4: 2019 in Review

    2019 IN REVIEW  EPS of $1.69, compared to $1.39 in 2018  Total regulated energy delivery earnings of $123.9 million – Natural gas utility retail sales volumes up 9.9%; approved rate recovery in Montana – WBI Energy completed organic growth projects; transported record volume of natural gas through

  5. Slide 5: 2019 Earnings

    2019 EARNINGS EARNINGS EPS $350 $335.5 $2.00 $1.69 $300 $1.75 $272.3 $1.50 $1.39 $250 $1.25 $200 millions $1.00 $150 $0.75 $100 $0.50 $50 $0.25 $0 $0.00 2018 2019 2018 2019 5

  6. Slide 6: First Quarter Earnings

    FIRST QUARTER EARNINGS EARNINGS EPS $50 $0.30 $40.9 $0.25 $40 $0.21 $0.20 $30 $25.1 millions $0.15 $0.13 $20 $0.10 $10 $0.05 $0 $0.00 2019 2020 2019 2020

  7. Slide 7: Electric & Natural Gas Utility

    ELECTRIC & NATURAL GAS UTILITY FIRST QUARTER EARNINGS  Earnings of $43.7 million EARNINGS – $5.2 million lower investment returns $60 $52.0 related to certain benefit plans $50 – 7.1% decrease in electric and 10.9% $43.7 decrease in natural gas sales volumes $40 due to milder weather that was 7-21%

  8. Slide 8: Retiring Coal Plants

    RETIRING COAL PLANTS  Expect to retire Lewis & Clark Station by end of March 2021and Heskett Units 1 and 2 by end of March 2022  Will build 88-megawatt natural gas-fired peaking unit at Heskett site – Advance Determination of Prudence requested of ND PSC – Possibly commissioned in mid-2023

  9. Slide 9: Pipeline

    PIPELINE FIRST QUARTER EARNINGS  Earnings of $7.4 million EARNINGS – Record transportation volumes from $10 organic growth projects – Higher transportation rates from $7.4 FERC-approved rate case $6.8 millions $5 $0 2019 2020

  10. Slide 10: North Bakken Expansion

    NORTH BAKKEN EXPANSION  Will add approximately 350 million cubic feet per day – Will bring total natural gas pipeline system capacity to nearly 3.6 billion cubic feet per day  Construction expected to start in early 2021  Expected to be in service in late 2021

  11. Slide 11: Construction Services

    CONSTRUCTION SERVICES FIRST QUARTER EARNINGS  Earnings of $16.8 million EARNINGS – $6.7 million out-of-period adjustment $25 to correct revenue recognition on a $20.0 construction contract in the prior year $20 $16.8 – Strong workloads at both inside and outside specialty contracting lines $15 mill

  12. Slide 12: Record Backlog

    RECORD BACKLOG  Backlog at March 31 at $1.27 billion, compared to $1.02 billion

  13. Slide 13: Construction Materials

    CONSTRUCTION MATERIALS FIRST QUARTER EARNINGS  Normal seasonal loss of $38.2 million SEASONAL LOSS – $2.4 million lower investment returns and higher payroll-related costs $0 2019 2020  Record first quarter revenues of $262.2 million, up 15% from 2019 -$10 millions -$20 -$30 $(34.4) -$40 $(38.2)

  14. Slide 14: Strong Backlog

    STRONG BACKLOG  Backlog March 31 at $905 million, compared to record $943 million in 2019

  15. Slide 15: Strong Financial Position

    STRONG FINANCIAL  Strong liquidity position POSITION – $431.8 million of available borrowing capacity Liquidity – $116.5 million of cash (As of March 31, 2020) – Issued $75 million term loan in April, additional financial $116.5 flexibility $431.8 Available Borrowed  Capitalization ratio of 54% eq

  16. Slide 16: COVID-19 – Our Response

    COVID-19 – OUR RESPONSE  Essential products and services – Minimal interruptions or delays to operations  Top priority is health and safety of employees, customers and communities – Implemented work-from-home practices where possible – Social distancing on construction projects – Suspended late pa

  17. Slide 17: 2020 EPS Guidance Updated

    2020 EPS GUIDANCE UPDATED $1.50-$1.70 Consolidated EPS Guidance Note: As of May 7, 2020 5-8% Long-Term Compound Annual Growth Rate Target 17

  18. Slide 18: Dividend Growth

    DIVIDEND $0.85 GROWTH $0.83  82 consecutive years of $0.80 quarterly dividend payments  Dividend increased November 2019, making 29 $0.75 Annualized Dividend $0.75 consecutive years of increases  Annualized dividend 83 cents per share $0.70  Member of S&P High-Yield Dividend Aristocrats index $0

  19. Slide 19: Thank You

    THANK YOU =MDU RESOURCES | Building a Strong America°

MDU Resources Group — Shareholder Meeting (May 2020) on 6ix