Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q2 2020 Earnings Presentation
19 slides from Mdu Resources's earnings presentation, Aug 5, 2020
Slide 1: Second Quarter Earnings Call
AUGUST 5, 2020 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.
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 Utilities Group D
Slide 5: Second Quarter Earnings
SECOND QUARTER EARNINGS EARNINGS EPS $0.60 $105 $99.7 $0.50 $90 $0.50 $75 $0.40 $61.8 $60 $0.31 millions $0.30 $45 $0.20 $30 $0.10 $15 $0 $0.00 2019 2020 2019 2020
Slide 6: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY SECOND QUARTER EARNINGS Reported earnings of $11.2 million EARNINGS – Lower operation and maintenance $15 expense, higher investment returns on certain benefit plans and the absence $11.2 of a prior year write-down had positive $10 impacts on the quarter – The compan
Slide 7: Pipeline
PIPELINE SECOND QUARTER EARNINGS Reported earnings of $9.0 million EARNINGS – Higher revenues from organic growth $10 $9.0 projects placed in service in 2019 and 2020 had a positive impact on the quarter $7.1 – Strong demand for storage services and higher investment returns on millions $5 certain
Slide 8: Construction Services
CONSTRUCTION SERVICES SECOND QUARTER EARNINGS Reported record second quarter earnings of $27.9 million EARNINGS $30 – Higher workloads and acquisitions at the $27.9 inside specialty contracting line and $25 higher outside specialty contracting line $22.8 workloads had a positive impact on $20 earn
Slide 9: Construction Materials
CONSTRUCTION MATERIALS SECOND QUARTER EARNINGS Reported record second quarter EARNINGS earnings of $53.0 million $60 $53.0 – Earnings were positively impacted by $50 higher contracting and materials margins and revenues, and higher $40 investment returns $29.2 millions – Recent acquisitions also h
Slide 10: Strong Financial Position
STRONG FINANCIAL POSITION Strong liquidity position –$655.1 million of available borrowing capacity –$64.4 million of cash Liquidity Capitalization Ratio $64.4 (As of June 30, 2020) Available (As of June 30, 2020) $304.9 Equity 45% Borrowed 55% Cash $655.1 Debt *borrowed under CP and credit facilit
Slide 11: Second Quarter Earnings Call
AUGUST 5, 2020 SECOND QUARTER EARNINGS CALL DAVE GOODIN President & Chief Executive Officer
Slide 12: 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 growth is expected to average 1-2 percent annually Filed with utility commissions in all e
Slide 13: Pipeline Outlook
PIPELINE OUTLOOK North Bakken Expansion project – FERC application filed in February 2020 – Filed FERC amendment application decreasing design capacity and associated project costs in July 2020 – Expected to start construction in early 2021 – Expected to be in service late 2021 Organic growth op
Slide 14: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Record second quarter revenues of $497.2 million, up from $464.9 million in 2019 All-time record backlog of $1.31 billion as of June 30, up 14% from second quarter 2019 2020 revenue guidance increased to a range of $1.90 billion to $2.10 billion with margins compa
Slide 15: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Record second quarter revenues of $621.1 million, up from $596 million in 2019 Second quarter backlog of $875 million, compared to a record $1.04 billion in the prior year 2020 revenue guidance increased to a range of $2.20 billion to $2.40 billion with margins s
Slide 16: 2020 EPS Guidance Updated
2020 EPS GUIDANCE UPDATED $1.65 - $1.85 Consolidated EPS Guidance Note: As of August 4, 2020 5 - 8% Long-Term Compound Annual Growth Rate Target 16
Slide 17: Capital Expenditures
CAPITAL EXPENDITURES Electric and natural gas utility − System infrastructure upgrades and $900.00 replacements $20 $800.00 − Natural gas combustion turbine $700.00 $154 Pipeline $79 $600.00 $20 (millions) − North Bakken expansion $500.00 Construction materials and services $161 $256 $157 $400
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 $0.83 per share $0.70 Member of S&P High-Yield Dividend Aristocrats index $0.65
Slide 19: Questions
INVESTOR RELATIONS QUESTIONS