Slide 1: Second Quarter Earnings Call
SECOND QUARTER EARNINGS CALL August 3, 2023
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: MDU Resources Group, Inc. Vision, Mission and Values
MDU Resources Group, Inc. Our Vision: With integrity, Building a Strong America® while being a great and safe place to work. Our Mission: Deliver superior value to stakeholders by providing essential infrastructure and services to America. Our Values: 3
Slide 4: Leadership Team
LEADERSHIP TEAM Dave Goodin Nicole Kivisto President & CEO Utilities Group President & CEO Jason Vollmer Rob Johnson Vice President, CFO & Treasurer WBI Energy President Stephanie Barth Jeff Thiede Vice President, CAO & Controller MDU Construction Services Group President & CEO 4
Slide 5: Financial Results
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Slide 6: MDU Resources Group, Inc. Second Quarter Earnings
MDU RESOURCES GROUP, INC. SECOND QUARTER EARNINGS GAAP EARNINGS GAAP EPS $140 $0.70 $130.7 $0.64 $120 $0.60 $100 $0.50 $80 $0.40 $70.7 millions $0.35 $60 $0.30 $40 $0.20 $20 $0.10 $- $- 2022 2023 2022 2023 6
Slide 7: Second Quarter Adjusted Income from Continuing Operations
MDU RESOURCES GROUP, INC. SECOND QUARTER ADJUSTED INCOME FROM CONTINUING OPERATIONS ADJUSTED INCOME* ADJUSTED EPS* $70 $0.35 $60.0 $0.29 $60 $0.30 $50 $0.25 $40 $0.20 $36.1 $0.18 millions $30 $0.15 $20 $0.10 $10 $0.05 $- $- 2022 2023 2022 2023 *Adjusted to reflect the unrealized gain on the retained
Slide 8: Electric & Natural Gas Utility Second Quarter Earnings
ELECTRIC & NATURAL GAS UTILITY SECOND QUARTER EARNINGS Earnings of $13.1 million GAAP EARNINGS $15 – Rate relief in certain electric and $13.1 natural gas jurisdictions contributed to increase in earnings $10 – Higher electric retail sales volumes, due to warmer weather and a new large- millions $
Slide 9: Pipeline Second Quarter Earnings
PIPELINE SECOND QUARTER EARNINGS Earnings of $8.7 million GAAP EARNINGS $10 – Record quarterly transportation $9 $8.7 volumes, largely due to increased contracted volume commitments on $8 $7.1 the North Bakken Expansion project $7 $6 – Higher transportation and storage- millions $5 related revenue
Slide 10: Construction Services Second Quarter Earnings
CONSTRUCTION SERVICES SECOND QUARTER EARNINGS Record second quarter earnings of GAAP EARNINGS $38.6 million $45 – Gross profit increased, largely due to $40 $38.6 project mix in commercial, industrial, and $34.5 $35 institutional markets $30 Record second quarter revenue of $25 $747.0 million, c
Slide 11: Regulatory Update
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Slide 12: Regulatory Update
REGULATORY UPDATE Electric and Natural Gas Utility – On June 6, ND PSC approved an all-party settlement allowing for a 7.4% revenue increase of $15.3 million in the utility’s electric rate case, with new rates effective July 1. – On June 12, the utility filed an all-party settlement for its electr
Slide 13: Segment Outlook
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Slide 14: Electric & Natural Gas Outlook
ELECTRIC & NATURAL GAS OUTLOOK Expects to grow rate base by 6-7% 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 reco
Slide 15: Pipeline Outlook
PIPELINE OUTLOOK Will continue to benefit from increased North Bakken Expansion contracted volume commitments which began Feb. 1, 2023. Construction began in the second quarter on three natural gas pipeline expansion projects that are anticipated to be placed in service later in 2023. – These pr
Slide 16: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK On July 10th, MDU Resources Board of Directors determined pursuing a potential tax-advantaged separation of this business will provide optimal value for shareholders. Record second quarter backlog of $1.94 billion, compared to $1.92 billion in 2022. The Infrastruc
Slide 17: 2023 Guidance
2023 GUIDANCE Regulated Energy Delivery Businesses Increased earnings guidance range to $150 million to $160 million, up $10 million from previous range of $140 million to $150 million. Construction Services Revenues expected to be in the range of $2.80 billion to $3.00 billion in 2023, with
Slide 18: MDU Resources Quarterly Dividend
MDU RESOURCES QUARTERLY DIVIDEND BOARD OF DIRECTORS DECLARED A QUARTERLY DIVIDEND OF 12.5 CENTS PER SHARE. Change reflects our intent to align our payout relative to regulated energy delivery earnings with pure-play peer regulated companies. Dividend is payable October 1 to stockholders of recor
Slide 19: Questions
MDU LISTED NYSE