Slide 1: First Quarter Earnings Call
May 5, 2022 FIRST 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: 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: MDU Resources Group, Inc.
MDU RESOURCES GROUP, INC. FIRST QUARTER EARNINGS EARNINGS EPS $60 $0.30 $52.1 $0.26 $50 $0.25 $40 $0.20 $31.7 $0.16 millions $30 $0.15 $20 $0.10 $10 $0.05 $- $- 2021 2022 2021 2022 4
Slide 5: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY FIRST QUARTER EARNINGS Reported earnings of $47.6 million EARNINGS – Electric retail sales volumes increased $60 2.5% and natural gas retail sales $47.6 $50 $46.9 volumes increased 9.0% – Rate recovery in several jurisdictions $40 and higher electric transmission rev
Slide 6: Pipeline
PIPELINE FIRST QUARTER EARNINGS EARNINGS $10 Reported earnings of $7.3 million $9 $8.9 – Higher transportation revenue due to $8 $7.3 the North Bakken Expansion project $7 – More than offset by lower storage- $6 related revenue, higher operating millions $5 expenses and lower investment returns $4
Slide 7: Construction Services
CONSTRUCTION SERVICES FIRST QUARTER EARNINGS Reported earnings of $21.3 million EARNINGS $35 – Decrease was largely driven by lower margins $29.8 $30 Transmission and Distribution operations performed less storm-repair and fire- $25 $21.3 hardening power line work than the prior $20 year million
Slide 8: Construction Materials
CONSTRUCTION MATERIALS FIRST QUARTER EARNINGS Reported a seasonal loss of $40.0 SEASONAL LOSS million 2021 2022 $- – Earnings decrease was driven by higher operating expenses, including fuel, $(10) materials and labor costs – Partially offset by increased average product pricing $(20) millions R
Slide 9: Segment Outlook
HEMDU RESOURCES | Building a Strong America® GROUP NC.
Slide 10: 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 11: Pipeline Outlook
PIPELINE OUTLOOK On February 1, the North Bakken Expansion project was placed in service. As currently designed, 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 Long-term customer agreement
Slide 12: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK All-time record backlog of $1.67 billion, 31% higher than Q1 2021 backlog of $1.27 billion 2022 revenue guidance in a range of $2.2 billion to $2.4 billion with margins comparable to 2021 levels The Infrastructure Investment and Jobs Act proposes billions of dolla
Slide 13: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Backlog of $940 million, 15% higher than Q1 2021 backlog of $819 million Increased 2022 revenue guidance $150 million to a range of $2.45 billion to $2.65 billion with margins slightly lower than 2021 levels Long-term opportunities from the Infrastructure Investm
Slide 14: Consolidated EPS Guidance
2022 EPS GUIDANCE AFFIRMED $2.00 - $2.15 Consolidated EPS Guidance Note: As of May 4, 2022 5 - 8% Long-Term Compound Annual Growth Rate Target 14
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
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