Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q4 2024 Earnings Presentation
20 slides from Mdu Resources's earnings presentation, Feb 6, 2025
Slide 1: Year-End Earnings Call
Year-End Earnings Call February 6, 2025 1
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events or developments that the company anticipates will or may occ
Slide 3: Leadership Team
Leadership Team Nicole Kivisto Rob Johnson President & CEO WBI Energy President Jason Vollmer Garret Senger Chief Financial Officer Chief Utilities Officer 3
Slide 4: Company Outlook
‘Company O AN ie utlook
Slide 5: Vision, Mission, Values
VISION MISSION VALUES Energizing Lives for a With integrity, deliver Integrity, Safety, Better Tomorrow value as a leading Respect, Excellence, energy provider and Stewardship employer of choice 5
Slide 6: 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 7: 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 Long history of providing regulated energy delivery service 2024 marked 76th year of 2024 marked 100th year continuous NYSE listing for the company Pure-play business prov
Slide 8: 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 • 580 MW of data center load under signed electric service agreements • Multi-pa
Slide 9: Regulatory Update
Regulatory Update Annual Revenue Increase Annual Revenue Increase Business State Filing Date Status (%) (in millions) Filed cases with requested rates Settlement Agreement Pending Natural Gas Washington March 29, 2024 11.6% $43.8M $29.8M/7.9% Effective March 1, 2025 Distribution 2.8% $11.7M $10.8M/2
Slide 10: 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 11: Pipeline Outlook
Pipeline Outlook • Purchased a 28-mile natural gas pipeline lateral that extends to a natural gas processing plant in the Bakken on November 1, 2024 • The Wahpeton Expansion project in eastern North Dakota was placed in service on December 1, 2024. The project adds approximately 20 million cubic fee
Slide 12: 2025 Guidance
2025 Guidance Earnings per share in the range of $0.88 to $0.98 • Based on the following assumptions: • Normal weather, economic and operating conditions • Continued availability of necessary equipment and materials • Electric and natural gas customer growth continuing at a rate of 1%-2% annually •
Slide 13: Strong Long-Term Regulated Financial Guidance
Strong Long-Term Regulated Financial Guidance $3.1 Billion 7-8% 1-2% Regulated Capital Investment Utility Rate Base Growth Customer Growth 6-8% 60-70% No near-term EPS Growth Rate Annual Dividend Payout Ratio Target equity needs 13
Slide 14: Financial Results
Kod Ying! Mma Financial Results
Slide 15: MDU Resources Group, Inc 2024 Earnings
MDU Resources Group, Inc 2024 Earnings Earnings in millions Adjusted income from continuing GAAP Net Income operations1,2 $414.7 $184.4 $150.8 $281.1 $2.03 $1.37 $0.74 $0.90 Earnings EPS Earnings EPS 2023 2024 2023 2024 1 Adjusted to exclude costs associated with MDU Resources’ strategic initiatives
Slide 16: Electric Utility
Electric Utility 2024 Earnings • Earnings of $74.8 million GAAP EARNINGS $80 (in millions) • Rate relief in North Dakota, South Dakota and $71.6 $74.8 Montana contributed $7.1 million in additional $70 revenue $60 • Partially offset by lower volumes from the $50 majority of customers, mainly from co
Slide 17: Natural Gas Utility
Natural Gas Utility 2024 Earnings • Earnings of $46.9 million GAAP EARNINGS $60 (in millions) • Earnings decrease primarily due to higher operations and maintenance and depreciation $48.5 $50 $46.9 and amortization expenses • Benefited from rate relief primarily from North $40 Dakota and South Dakot
Slide 18: Pipeline
Pipeline 2024 Earnings • Record earnings of $68.0 million GAAP EARNINGS (in millions) • Record annual transportation volumes largely $80 from organic growth projects placed in service in late 2023 and throughout 2024 $70 $68.0 • Storage-related revenue grew by $7.1 million $60 in 2024, reflecting co
Slide 19: Appendix
Nis AN I¢@ EXCHANGE Es 19
Slide 20: 2024 Earnings Reconciliation
MDU Resources Group, Inc 2024 Earnings Reconciliation Earnings in millions Twelve Months Ended December 31 2023 2024 Net Income $414.7 $281.1 Discontinued operations, net of tax $84.6 $100.0 Income from Continuing operations1 $330.1 $181.1 Adjustments: Less: Gain on tax-free exchange of retained $18