Slide 1: Third Quarter Earnings Call
NOV. 4, 2021 THIRD 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: Third Quarter Earnings
THIRD QUARTER EARNINGS EARNINGS EPS $180 $0.80 $0.76 $160 $153.1 $0.70 $0.68 $140 $139.3 $0.60 $120 $0.50 $100 millions $0.40 $80 $0.30 $60 $0.20 $40 $20 $0.10 $- $0.00 2020 2021 2020 2021
Slide 5: Construction Services
CONSTRUCTION SERVICES THIRD QUARTER EARNINGS Reported earnings of $23.1 million EARNINGS – Earnings were negatively impacted by $35 $5.5 million, after tax, for changes in $29.8 $30 estimates on a construction contract – Margins also decreased, due to $25 $23.1 increased employee costs associated
Slide 6: Construction Materials
CONSTRUCTION MATERIALS THIRD QUARTER EARNINGS Reported earnings of $96.3 million EARNINGS – Earnings decrease was driven by lower $120 asphalt product sales and margins and $107.3 lower contracting revenues and $100 $96.3 margins in most regions – Impacting margins were higher realized $80 materia
Slide 7: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY THIRD QUARTER EARNINGS Reported earnings of $5.2 million EARNINGS – Electric retail sales volumes increased $6 11.1% and natural gas retail sales $5.2 $5 volumes increased 2.0% – Rate recovery in several jurisdictions $4 and increased natural gas $3 transportation re
Slide 8: Pipeline
PIPELINE THIRD QUARTER EARNINGS EARNINGS $12 Reported earnings of $10.6 million $10.6 – Higher AFUDC on the company’s North $10 Bakken Expansion project drove the $8.0 increase in earnings $8 – Partially offset by lower natural gas millions $6 storage-related revenues $4 $2 $0 2020 2021
Slide 9: Third Quarter Earnings Call
NOV. 4, 2021 THIRD 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 – Construction began mid-July on this pipeline expansion in western North Dakota that will have capacity to transport 250 million cubic feet of natural gas per day – Expected to cost $260 million and be in service in early 2022 Wahpeton Expansion p
Slide 12: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Backlog of $1.27 billion as of September 30, 2021 2021 revenue guidance in a range of $2.0 billion to $2.2 billion with margins comparable to 2020 levels Continues to see strong inside specialty contracting demand in the commercial sector, and increased outside sp
Slide 13: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Third quarter backlog of $652 million, 14% higher than the prior year’s backlog of $571 million 2021 revenue guidance in a range of $2.1 billion to $2.3 billion with margins slightly lower than 2020 levels 1.1 billion tons of aggregate reserves Optimistic about
Slide 14: 2021 EPS Guidance Updated
2021 EPS GUIDANCE UPDATED $1.90 - $2.05 Consolidated EPS Guidance Note: As of November 3, 2021 5 - 8% Long-Term Compound Annual Growth Rate Target 14
Slide 15: 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 16: Questions
_ MDU LISTED NYSE