Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — FY2021 Earnings Presentation
17 slides from Mdu Resources's earnings presentation, Feb 10, 2022
Slide 1: 2021 Earnings & 2022 Guidance Call
FEB 10, 2022 2021 EARNINGS & 2022 GUIDANCE CALL
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS During 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 results may dif
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: 2021 Full-Year Highlights
2021 FULL-YEAR HIGHLIGHTS 2021 earnings of $378.1 million or $1.87 per share Establishing 2022 earnings per share guidance of $2.00 to $2.15 5-8% long-term compound annual growth rate target Over $3 billion five-year capital program underway Increased our dividend for the 31st consecutive
Slide 5: Construction Materials
CONSTRUCTION MATERIALS • Contracting revenues and gross margin decreased EARNINGS from less available paving work $160 $147.3 $140 $129.8 • Aggregate volumes increased from strong public and $120 private sector demand, more than offset by lower $100 margins $80 millions $60 • Ready-mix gross margin
Slide 6: Construction Services
CONSTRUCTION SERVICES • Electrical and mechanical (E&M) gross margin increased EARNINGS from the prior year driven by the commercial, industrial $120 $109.7 $109.4 and service markets $100 • E&M workloads decreased in the commercial and $80 institutional markets $60 millions • Transmission and distr
Slide 7: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY • Natural gas earnings increased to $51.6 million for the EARNINGS $120 year from higher retail sales margins partially offset by $103.5 $99.6 higher operation and maintenance expense $100 $80 • Electric reported earnings of $51.9 million, a $60 decrease of 6.7% from t
Slide 8: Pipeline
PIPELINE • Increase in earnings driven by a $7.0 million, after-tax, EARNINGS $45 benefit from the allowance for funds used during $40.9 $40 $37.0 construction, primarily on the North Bakken Expansion $35 project, and increased transportation revenues $30 $25 • Fifth consecutive year of record trans
Slide 9: Funding Plan for 2022
FUNDING PLAN FOR 2022 Based on current estimates, the company’s plan to fund gross capital expenditures of $726 million and dividends includes the following sources: Funding Sources Estimates Operating cash Flows $650M-$700M Debt $200M-$250M 9
Slide 10: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Record year end backlog of $708 million, 5% higher than the prior year’s backlog of $673 million Established 2022 revenue guidance in a range of $2.3 billion to $2.5 billion with margins comparable to 2021 levels 1.2 billion tons of aggregate reserves Long-term
Slide 11: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK All-time record backlog of $1.38 billion, 9% higher than the prior year’s backlog of $1.27 billion Established 2022 revenue guidance in a range of $2.2 billion to $2.4 billion with margins comparable to 2021 levels The IIJA proposes billions of dollars of investme
Slide 12: Electric & Natural Gas Outlook
ELECTRIC & NATURAL GAS OUTLOOK Expects to grow rate base by 5% compounded annually over the next five years Safely meet customer demand by upgrading and expanding infrastructure and facilities Customer base expected to continue growing by 1- 2% annually Focused on timely regulatory recovery
Slide 13: Pipeline Outlook
PIPELINE OUTLOOK On February 1, the North Bakken Expansion project was placed in service. This project has the capacity to transport 250 million cubic feet of natural gas per day and brings system capacity to over 2.4 billion cubic feet per day Wahpeton Expansion project – 60-mile, 12-inch natur
Slide 14: Financial Guidance
FINANCIAL AS OF FEBRUARY 9, 2022 GUIDANCE Select Historical Results 2022 Guidance Forward Guidance Framework 2016-2021 ($ in millions except EPS) 2016 2021 CAGR Electric & Natural Gas Utility 5% Rate Base CAGR over 5 years $69.3 $103.5 8.4% - Earnings Customer Growth: 1-2% annually Pipeline Earnings
Slide 15: Dividend Growth
DIVIDEND $0.90 GROWTH $0.87 $0.85 84 consecutive years of quarterly dividend payments Dividend increased $0.80 November 2021, making 31 Annualized Dividend $0.77 consecutive years of increases $0.75 Annualized dividend $0.87 per share Member of S&P High-Yield $0.70 Dividend Aristocrats index
Slide 16: Questions
__ MDU LISTED NYSE
Slide 17: Reconciliation of EBITDA Guidance
RECONCILIATION OF EBITDA GUIDANCE (in millions) Low High Income from continuing operations $390.0 $430.0 Adjustments: Interest expense 95.0 95.0 Income taxes 95.0 105.0 Depreciation, depletion and amortization 320.0 320.0 EBITDA from continuing operations $900.0 $950.0 17