Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q3 2019 Earnings Presentation
17 slides from Mdu Resources's earnings presentation, Oct 30, 2019
Slide 1: Third Quarter Earnings Call
OCTOBER 30, 2019 THIRD QUARTER EARNINGS CALL JASON VOLLMER Vice President, Chief Financial Officer & Treasurer
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: With integrity, create superior shareholder value
“ With integrity, create superior shareholder value by expanding upon our expertise to be the supplier of choice in all of our “ markets while being a safe and great place to work. 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 & Treasurer F. Trevor Hastings C D WBI Energy President & CEO C. Stephanie Barth Vice President, CAO & Controller G. Nicole Kivisto MDU EC D. Dave Ba
Slide 5: Third Quarter Earnings
THIRD QUARTER EARNINGS EARNINGS EPS $140 $137.6 $0.70 $0.69 $120 $0.60 $107.3 $0.55 $100 $0.50 millions $80 $0.40 $60 $0.30 $40 $0.20 $20 $0.10 $0 $0.00 2018 2019 2018 2019 5
Slide 6: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY THIRD QUARTER EARNINGS EARNINGS Reported earnings of $700,000 $5 – Increased operation and maintenance expense, and higher depreciation, depletion and amortization expense due $4 to increased property, plant and $3.4 equipment – Lower electric sales volumes due to mi
Slide 7: Pipeline & Midstream
PIPELINE & MIDSTREAM THIRD QUARTER EARNINGS EARNINGS Reported earnings of $7.7 million $12 – 2018 earnings included a one-time $11.0 $4.2 million tax benefit $10 – Earnings were further impacted by higher depreciation, depletion and amortization $7.7 $8 expense from increased depreciation millions
Slide 8: Construction Services
CONSTRUCTION SERVICES THIRD QUARTER EARNINGS EARNINGS Reported record third quarter earnings of $25 $21.1 million – Higher inside and outside specialty contracting $21.1 $20 workloads and margins from strong customer demand had a positive impact on the quarter – The earnings increase was partially
Slide 9: Construction Materials
CONSTRUCTION MATERIALS THIRD QUARTER EARNINGS EARNINGS Reported record third quarter earnings of $102.6 million $120 – Higher revenues from contracting and $102.6 material sales and higher gross margin from $100 strong economic environments in many states of operation $80 $78.9 – Also contributing
Slide 10: Third Quarter Earnings Call - Dave Goodin
OCTOBER 30, 2019 THIRD QUARTER EARNINGS CALL DAVE GOODIN President & Chief Executive Officer
Slide 11: Electric & Natural Gas Utility Outlook
ELECTRIC & NATURAL GAS UTILITY 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 re
Slide 12: Pipeline & Midstream Outlook
PIPELINE & MIDSTREAM OUTLOOK Line Section 22 Expansion project – Will increase capacity, as designed, by 22.5 million cubic feet per day – Expected to be in service in November 2019 Demicks Lake Expansion project – Will increase capacity, as designed, by 175 million cubic feet per day – Expected
Slide 13: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK All-time record backlog of $1.2 billion, up 34% from $896 million in 2018 2019 revenue guidance range increased to a range of $1.75 billion to $1.85 billion – Margins comparable to or slightly higher than 2018 Demand for specialty contracting work in the following
Slide 14: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Record third quarter backlog of $747 million, up 27% from $590 million in 2018 2019 revenue guidance narrowed to a range of $2.1 billion to $2.2 billion – Margins comparable to or slightly higher than 2018 Economic conditions continue to be strong in many states
Slide 15: 2019 EPS Guidance Updated
2019 EPS GUIDANCE UPDATED $1.50 - $1.60 Consolidated EPS Guidance Note: As of October 29, 2019 5 - 8% Long-Term Compound Annual Growth Rate Target 15
Slide 16: Dividend Growth
DIVIDEND $0.85 GROWTH $0.81 81 consecutive years of $0.80 quarterly dividend payments Dividend increased Annualized Dividend Rate November 2018, making 28 $0.75 consecutive years of increases Annualized dividend $0.81 per share $0.70 $0.69 Member of S&P High-Yield Dividend Aristocrats index
Slide 17: Questions
INVESTOR RELATIONS QUESTIONS