Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q3 2022 Earnings Presentation
21 slides from Mdu Resources's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter Earnings Call
November 3, 2022 THIRD QUARTER EARNINGS 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: Vision and Mission
Vision: With integrity, Building a Strong America® while being a great and safe place to work Mission: Delivering superior value to stakeholders by providing essential infrastructure and services to America 3
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 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 5: Financial Results
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Slide 6: Third Quarter Earnings: GAAP Earnings and EPS
MDU RESOURCES GROUP, INC. THIRD QUARTER EARNINGS GAAP EARNINGS GAAP EPS $160 $0.80 $147.9 $0.73 $140 $139.3 $0.70 $0.68 $120 $0.60 $100 $0.50 millions $80 $0.40 $60 $0.30 $40 $0.20 $20 $0.10 $- $- 2021 2022 2021 2022 6
Slide 7: Third Quarter Earnings: Adjusted Earnings and EPS
MDU RESOURCES GROUP, INC. THIRD QUARTER EARNINGS ADJUSTED EARNINGS ADJUSTED EPS $160 $0.80 $152.0 $0.75 $140 $139.3 $0.70 $0.68 $120 $0.60 $100 $0.50 millions $80 $0.40 $60 $0.30 $40 $0.20 $20 $0.10 $- $- 2021 2022 2021 2022 7
Slide 8: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY THIRD QUARTER EARNINGS Reported earnings of $3.5 million. EARNINGS $6 – Increased interest expense as a result of $5.2 increased debt balances and higher $5 average interest rates impacted results. $4 $3.5 – Higher revenues associated with North millions Dakota elect
Slide 9: Pipeline
PIPELINE THIRD QUARTER EARNINGS Reported earnings of $9.8 million. EARNINGS $12 – Higher transportation revenues and $10.6 $9.8 record transportation volumes largely $10 due to the North Bakken Expansion project. $8 millions – Partially offset by lower allowance for $6 funds used during constructi
Slide 10: Construction Services
CONSTRUCTION SERVICES THIRD QUARTER EARNINGS EARNINGS Reported earnings of $28.0 million. $30 $28.0 – Electrical and mechanical workloads $25 $23.1 increased 70%. $20 – Workloads were favorably impacted by progress on large hospitality, data millions $15 center, and renewable projects. All-time
Slide 11: Construction Materials
CONSTRUCTION MATERIALS THIRD QUARTER EARNINGS EARNINGS Reported earnings of $102.8 million. $110 $102.8 $96.3 – Higher average materials pricing across $100 product lines. $90 $80 – Slightly lower margin percentages $70 mostly attributable to higher operating $60 millions costs related to inflatio
Slide 12: Strategic Update
HEMDU RESOURCES | Building a Strong America® GROUP NC.
Slide 13: Strategic Update
STRATEGIC UPDATE Board of Directors has unanimously determined the best way to optimize value would be to create two pure-play public companies. Intend to commence a strategic review process to explore alternatives for our Construction Services business. Expected to unlock significant value fo
Slide 14: Segment Outlook
HEMDU RESOURCES | Building a Strong America® GROUP NC.
Slide 15: 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 recove
Slide 16: Pipeline Outlook
PIPELINE OUTLOOK Continuing work on several expansion projects, including the Wahpeton Expansion project, that are expected to add more than 300 million cubic feet per day of incremental capacity as they are completed in 2023-2024, pending regulatory approvals. North Bakken Expansion was placed
Slide 17: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK All-time record backlog of $2.00 billion, 57% higher than Q3 2021 backlog of $1.27 billion. Increased 2022 revenue guidance range by $100 million to a range of $2.5 billion to $2.7 billion with margins lower than 2021. The Infrastructure Investment and Jobs Act an
Slide 18: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Record third quarter backlog of $895 million, 37% higher than Q3 2021 backlog of $652 million. Affirmed 2022 revenue guidance in the range of $2.45 billion to $2.65 billion with margins slightly lower than 2021. Long-term opportunities from the Infrastructure Inv
Slide 19: Consolidated EPS Guidance
2022 EPS GUIDANCE AFFIRMED $1.75 - $1.90 Consolidated EPS Guidance Note: As of November 3, 2022 5 - 8% Long-Term Compound Annual Growth Rate Target 19
Slide 20: Dividend Growth
DIVIDEND $0.90 GROWTH $0.87 $0.85 Dividend increased November 2021, making 31 consecutive years of $0.80 increases Annualized Dividend $0.77 84 consecutive years of quarterly dividend payments $0.75 Annualized dividend $0.87 per share Member of S&P High-Yield $0.70 Dividend Aristocrats index
Slide 21: Questions
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