Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q4 2023 Earnings Presentation
20 slides from Mdu Resources's earnings presentation, Feb 8, 2024
Slide 1: Year-End Earnings Call
YEAR-END EARNINGS CALL February 8, 2024
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 Nicole Kivisto Jeff Thiede President & CEO MDU Construction Services Group President & CEO Jason Vollmer Rob Johnson Vice President, CFO & Treasurer WBI Energy President Stephanie Sievert Garret Senger Vice President, CAO & Controller Utilities Group Chief Utilities Officer 3
Slide 4: Segment Outlook
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Slide 5: Electric & Natural Gas Outlook
ELECTRIC & NATURAL GAS OUTLOOK Expects to grow rate base by approximately 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 regula
Slide 6: Pipeline Outlook
PIPELINE OUTLOOK Will continue to benefit from new transportation and storage service rates, as approved by the FERC, which were effective Aug. 1, 2023 Will continue to benefit from expansion projects placed in service in Nov. 2023 Current transportation capacity of approximately 2.6 billion c
Slide 7: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Previously announced tax-free spinoff expected to be complete in late 2024 Backlog of $2.01 billion, down slightly compared to record year-end backlog of $2.13 billion in 2022 The Infrastructure Investment and Jobs Act and Inflation Reduction Act propose billions
Slide 8: Regulatory Update
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Slide 9: Regulatory Update
REGULATORY UPDATE Annual Revenue Annual Revenue Business Jurisdiction Filing Date Status Increase (%) Increase (in millions) Settled cases with implemented rates Electric North Dakota Approved June 6, 2023 May 16, 2022 7.4% $15.3M Utility Electric New rates effective July 1, 2023 Natural Gas Idaho N
Slide 10: 2024 Guidance
2024 GUIDANCE Regulated Energy Delivery Earnings in the range of $170 million to $180 million Construction Services Revenues expected to be in the range of $2.9 billion to $3.1 billion, with margins comparable to 2023 EBITDA in the range of $220 million to $240 million Guidance as of Febru
Slide 11: Analyst & Investor Day
MDU Resources Group ANALYST & INVESTOR DAY March 13, 2024 • NYSE 11
Slide 12: Financial Results
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Slide 13: 2023 Earnings
MDU RESOURCES GROUP, INC. 2023 EARNINGS GAAP EARNINGS GAAP EPS $450 $2.50 $414.7 $400 $367.5 $2.03 $2.00 $350 $1.81 $300 $1.50 $250 millions $200 $1.00 $150 $100 $0.50 $50 $- $- 2022 2023 2022 2023 13
Slide 14: 2023 Adjusted Income from Continuing Operations
MDU RESOURCES GROUP, INC. 2023 ADJUSTED INCOME FROM CONTINUING OPERATIONS ADJUSTED INCOME* ADJUSTED EPS* $350 $1.60 $1.50 $305.1 $300 $1.40 $1.25 $254.5 $1.20 $250 $1.00 $200 millions $0.80 $150 $0.60 $100 $0.40 $50 $0.20 $- $- 2022 2023 2022 2023 *Adjusted to exclude the gain on the tax-free exchan
Slide 15: Electric & Natural Gas Utility 2023 Earnings
ELECTRIC & NATURAL GAS UTILITY 2023 EARNINGS Earnings of $120.1 million GAAP EARNINGS $140 – All-time record electric retail sales $120.1 volumes, largely due to a new data $120 center customer $102.3 $100 – Approved rate relief in certain electric and natural gas jurisdictions $80 millions – Lowe
Slide 16: Pipeline 2023 Earnings
PIPELINE 2023 EARNINGS Record earnings of $46.9 million GAAP EARNINGS $50 $46.9 – Record annual transportation volumes, largely from increased contracted volume commitments on the North Bakken $40 $35.3 Expansion project and other expansion projects $30 millions – Higher revenue from new transport
Slide 17: Construction Services 2023 Earnings
CONSTRUCTION SERVICES 2023 EARNINGS Record earnings of $137.2 million GAAP EARNINGS – Strong demand for commercial and $160 institutional services work, particularly for $140 $137.2 hospitality, high-tech, data center and $124.8 $120 health care clients – Strong demand for utility-related $100 tra
Slide 18: Questions
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Slide 19: Appendix
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Slide 20: Reconciliation of EBITDA Guidance
RECONCILIATION OF EBITDA GUIDANCE ($ in millions) As of February 8, 2024 Construction Services Low High Income from continuing operations $135.0 $150.0 Adjustments: Interest expense 15.0 15.0 Income taxes 45.0 50.0 Depreciation, depletion and 25.0 25.0 amortization EBITDA from continuing operations1