Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q2 2024 Earnings Presentation
21 slides from Mdu Resources's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter Earnings Call
Second Quarter Earnings Call August 8, 2024 1
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes “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 differ materially. For a
Slide 3: Leadership Team
Leadership Team Nicole Kivisto Jeff Thiede President & CEO Everus 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
a id . | —— Segment Outlook
Slide 5: Compelling Investment Opportunity
Compelling Investment Opportunity • Focusing on our “CORE” • One of the largest electrical construction service • Strong regulated business mix providers in the U.S. • Extensive operational diversification • Essential infrastructure service provider • Supportive regulatory environment • Competitive
Slide 6: Focusing on our "CORE"
Focusing on our “CORE” MDU Resources becoming a pure-play regulated entity focuses the company on its original “CORE” energy delivery business Customers & Operational Returns Employee Communities Excellence Focused Driven Long history of providing regulated energy delivery service 2023 marked 75th y
Slide 7: Electric & Natural Gas Outlook
Electric & Natural Gas Outlook • Expect to grow rate base by 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 recovery •
Slide 8: Pipeline Outlook
Pipeline Outlook • Will continue to benefit from expansion projects placed in service in late 2023 and early 2024 • Line Section 28 expansion project was placed in service on July 1, 2024 and serves a natural gas-fired power plant. The project adds 137 million cubic feet per day of natural gas trans
Slide 9: Everus Outlook
Everus Outlook • Previously announced tax-free spinoff expected to be complete in late 2024, an investor day will take place prior to the spinoff • All-time record backlog of $2.40 billion, compared to $1.94 billion as of June 30, 2023 • The Infrastructure Investment and Jobs Act and Inflation Reduc
Slide 10: Regulatory Update
Regulatory Update Annual Revenue Increase Annual Revenue Increase (in Business State Filing Date Status (%) millions) Filed cases with requested rates Pending Natural Gas Washington March 29, 2024 11.6% $43.8M Effective March 1, 2025 Distribution 2.8% $11.7M Effective March 1, 2026 Pending Interim r
Slide 11: Updated 2024 Guidance
Updated 2024 Guidance Regulated Energy Delivery Everus • Affirms earnings guidance in the • Updated revenue guidance range to range of $170 million to $180 $2.65 billion to $2.85 billion, down million from previous guidance of $2.9 billion to $3.1 billion, with margins now expected to be higher than
Slide 12: Strong Long-Term Guidance for Regulated Business
Strong Long-Term Guidance for Regulated Business $2.7 Billion 7% 1-2% Regulated Capital Investment Utility Rate Base Growth Customer Growth 6-8% 60-70% No near-term Annual Dividend Payout EPS Growth Rate Ratio Target equity needs 12
Slide 13: Financial Results
= Voom! Maat Financial Results
Slide 14: MDU Resources Group, Inc Second Quarter Earnings
MDU Resources Group, Inc Second Quarter Earnings Earnings in millions Adjusted income from continuing GAAP Net Income operations* $130.7 $65.2 $60.0 $60.4 $0.64 $0.29 $0.32 $0.30 Earnings EPS Earnings EPS 2023 2024 2023 2024 *Adjusted to exclude costs associated with MDU Resources’ strategic initiat
Slide 15: Electric & Natural Gas Utility Second Quarter Earnings
Electric & Natural Gas Utility Second Quarter Earnings • Earnings of $10.5 million GAAP EARNINGS • Electric earnings declined due to lower $14 $13.1 volumes from 37% cooler weather coupled with higher operation and maintenance $12 $10.5 expense, partially offset by rate relief $10 • Natural gas dist
Slide 16: Pipeline Second Quarter Earnings
Pipeline Second Quarter Earnings • Record second quarter earnings of $17.3 GAAP EARNINGS million $20 $17.3 • All-time record transportation volumes largely $18 from organic growth projects placed in service $16 in November 2023 and March 2024 $14 • Higher revenue from new transportation and $12 stor
Slide 17: Everus Second Quarter Earnings
Everus Second Quarter Earnings • Record second quarter earnings of $39.0 GAAP EARNINGS million, compared to $38.6 million in the $45 second quarter of 2023 $39.0 $40 $38.6 • Higher transmission and distribution revenues, $35 along with higher electrical and mechanical data center workloads, partiall
Slide 18: Questions
Questions 18
Slide 19: Appendix
Appendix 19
Slide 20: Reconciliation of 2024 EBITDA Guidance
Reconciliation of 2024 EBITDA Guidance As of August 8, 2024 Everus ($ in millions) Low High Income from continuing operations $140.0 $150.0 Adjustments: Interest expense 10.0 15.0 Income taxes 45.0 50.0 Depreciation and amortization 25.0 25.0 EBITDA from continuing operations $220.0 $240.0 Note: EBI
Slide 21: Reconciliation of EBITDA
Reconciliation of EBITDA $ in millions Three Months Ended June 30 2023 2024 Income from continuing operations $41.1 $39.0 Discontinued operations, net of tax $(2.5) - Net Income $38.6 $39.0 Adjustments: Interest expense $1.9 $3.3 Interest expense included in discontinued $2.5 - operations, net of ta