Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q1 2023 Earnings Presentation
21 slides from Mdu Resources's earnings presentation, May 4, 2023
Slide 1: First Quarter Earnings Call
FIRST QUARTER EARNINGS CALL May 4, 2023
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: MDU Resources Group, Inc. Vision, Mission and Values
MDU Resources Group, Inc. Our Vision: With integrity, Building a Strong America® while being a great and safe place to work. Our Mission: Deliver superior value to stakeholders by providing essential infrastructure and services to America. Our Values: 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. Brian Gra
Slide 5: Separation Announcement
Separation Announcement
Slide 6: Knife River Announcement
KNIFE RIVER ANNOUNCEMENT MDU Resources Group board of directors has approved the previously announced separation of Knife River Knife River separation effective May 31 MDU Resources stockholders will retain their current shares of MDU On the distribution date of May 31, each MDU Resources stoc
Slide 7: Financial Results
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Slide 8: MDU Resources Group, Inc. First Quarter Earnings (GAAP)
MDU RESOURCES GROUP, INC. FIRST QUARTER EARNINGS GAAP EARNINGS GAAP EPS $45 $0.20 $0.19 $40 $38.3 $0.18 $0.16 $0.16 $35 $31.7 $0.14 $30 $0.12 $25 millions $0.10 $20 $0.08 $15 $0.06 $10 $0.04 $5 $0.02 $- $- 2022 2023 2022 2023 8
Slide 9: MDU Resources Group, Inc. First Quarter Adjusted Earnings
MDU RESOURCES GROUP, INC. FIRST QUARTER EARNINGS ADJUSTED EARNINGS ADJUSTED EPS $50 $0.25 $46.6 $0.23 $45 $40 $0.20 $35 $0.16 $31.7 $30 $0.15 millions $25 $20 $0.10 $15 $10 $0.05 $5 $- $- 2022 2023 2022 2023 9
Slide 10: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY FIRST QUARTER EARNINGS Earnings of $55.5 million GAAP EARNINGS $60 – Rate relief in certain electric and $55.5 natural gas jurisdictions $50 $47.6 – Higher retail sales volumes, partially due $40 to colder weather millions $30 – Higher investment returns on nonqualif
Slide 11: Pipeline
PIPELINE FIRST QUARTER EARNINGS Earnings of $8.3 million GAAP EARNINGS $9 – Record first quarter transportation $8.3 $8 volumes, largely due to a full first $7.3 quarter of benefit from the North $7 Bakken Expansion project, as well as its $6 increased contracted volume $5 millions commitments beg
Slide 12: Construction Services
CONSTRUCTION SERVICES FIRST QUARTER EARNINGS Earnings of $26.1 million GAAP EARNINGS $30 All-time record quarterly revenue $26.1 of $754.3 million, compared to $25 $21.3 $552.6 million in 2022 $20 – Electrical and mechanical revenues increased millions 50% compared to first quarter 2022 $15 – In
Slide 13: Construction Materials
CONSTRUCTION MATERIALS FIRST QUARTER EARNINGS Seasonal loss of $41.3 million GAAP EARNINGS – Unfavorable weather across most regions resulted in decreased volumes for certain $(5) products – Higher average product pricing $(15) contributed to higher margins millions First quarter revenue of $307
Slide 14: Segment Outlook
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Slide 15: Electric & Natural Gas Outlook
ELECTRIC & NATURAL GAS OUTLOOK Expects to grow rate base by 6-7% 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 recover
Slide 16: Pipeline Outlook
PIPELINE OUTLOOK Will continue to benefit from increased North Bakken Expansion contractual volume commitments which began Feb. 1, 2023 Filed a rate case with the Federal Energy Regulatory Commission on Jan. 27, 2023, new rates for transportation and storage services, pending FERC approval, will
Slide 17: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Strategic review of Construction Services is underway and expected to be complete in the second quarter of 2023 Record first quarter backlog of $2.10 billion, 26% higher than 2022 backlog of $1.67 billion The Infrastructure Investment and Jobs Act and Inflation Re
Slide 18: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Record first quarter contracting services backlog of $959 million, 23% higher than 2022 backlog of $778 million Long-term opportunities from the Infrastructure Investment and Jobs Act and Inflation Reduction Act, providing billions of dollars for the repair and reb
Slide 19: 2023 Guidance
2023 GUIDANCE Regulated Energy Delivery Businesses Earnings in the range of $140 million to $150 million Construction Services Revenues expected to be in the range of $2.80 billion to $3.00 billion in 2023, with slightly higher margins compared to 2022 EBITDA in the range of $200 million t
Slide 20: MDU Resources Quarterly Dividend
MDU RESOURCES QUARTERLY DIVIDEND BOARD OF DIRECTORS DECLARED A QUARTERLY DIVIDEND OF 22.25 CENTS PER SHARE, UNCHANGED FROM THE PREVIOUS QUARTER. Following the spinoff of Knife River, MDU Resources’ board of directors expects to review dividend practice with the intent to align payout relative to r
Slide 21: Questions
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