Slide 1: First Quarter Earnings Call
May 1, 2019 FIRST 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: Company mission statement
“ 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: First Quarter Earnings
FIRST QUARTER EARNINGS EARNINGS EPS $60 $0.25 $0.22 $55 $0.21 $0.20 $50 $45 $42.4 $40.9 $0.15 millions $40 $0.10 $35 $30 $0.05 $25 $20 $0.00 2018 2019 2018 2019 5
Slide 6: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY FIRST QUARTER EARNINGS ▪ Reported combined earnings of EARNINGS $52.0 million $60 – Higher natural gas retail sales volumes, $55 increased returns on investments and $52.0 higher electric revenues associated with $50 regulatory mechanisms $45.7 – Earnings partially off
Slide 7: Pipeline & Midstream
PIPELINE & MIDSTREAM FIRST QUARTER EARNINGS ▪ Reported earnings of $6.8 million EARNINGS $8 – Increased transportation revenues driven by organic growth projects placed in $6.8 $7 service in the second half of 2018 – The increase was partially offset by $6 higher interest expense, higher $5.3 deprec
Slide 8: Construction Services
CONSTRUCTION SERVICES FIRST QUARTER EARNINGS ▪ Reported record earnings of $20.0 million EARNINGS – Higher inside and outside specialty $25 contracting workloads – Higher equipment sales and rentals – Earnings offset by higher selling, general and $20 $20.0 administration expense ▪ Record revenues o
Slide 9: Construction Materials
CONSTRUCTION MATERIALS FIRST QUARTER EARNINGS LOSS ▪ Reported a seasonal loss of $34.4 million 2018 2019 $0 – Increased loss, as expected, reflects seasonal losses associated with companies -$5 acquired in 2018, and lower materials margins from less favorable weather -$10 conditions in certain regio
Slide 10: First Quarter Earnings Call
May 1, 2019 FIRST QUARTER EARNINGS CALL DAVE GOODIN President & Chief Executive Officer
Slide 11: Utility Electric & Natural Gas Outlook
UTILITY ELECTRIC & NATURAL GAS OUTLOOK ▪ Safely meet customer demand by upgrading and expanding infrastructure and facilities ▪ Customer base expected to continue growing by 1-2 percent annually ▪ Expects to grow rate base by 5% compounded annually over the next five years ▪ Focused on timely regula
Slide 12: Pipeline & Midstream Outlook
PIPELINE & MIDSTREAM OUTLOOK ▪ 14-mile Demicks Lake project; estimated cost of $30 million – Will increase capacity, as designed, by 175 million cubic feet per day – Expected to be in service in fall 2019 ▪ Demicks Lake Expansion project; estimated cost of $12 million – Will increase capacity, as de
Slide 13: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK ▪ Record backlog of $1.02 billion, up 51 percent from $675 million in 2018 ▪ 2019 revenue guidance range increased to $1.40 billion to $1.55 billion – Margins comparable to 2018 ▪ Strong demand for utility construction equipment it manufactures and electrical transmissi
Slide 14: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK ▪ Record backlog of $943 million, up 36 percent from $692 million in 2018 ▪ 2019 revenue guidance range of $2.0 billion to $2.15 billion – Margins comparable to or slightly higher than 2018 ▪ 1 billion tons of aggregate reserves ▪ Evaluating additional acquisition oppo
Slide 15: 2019 EPS Guidance Updated
2019 EPS GUIDANCE UPDATED $1.40 - $1.55 Consolidated EPS Guidance Note: As of April 30, 2019 5 - 8% Long-Term Compound Annual Growth Rate Target 15
Slide 16: Capital Program
2019-23 Utility Construction Pipeline & Midstream CAPITAL $3,000 TOTAL CAPITAL FORECAST OF $2,702* PROGRAM $2,500 $435 ▪ Electric and natural gas utility − System infrastructure upgrades and replacements $2,000 ▪ Construction materials and $787 services millions − Equipment and plant replacements an
Slide 17: 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 ▪ 2018 annualized dividend $0.81 per share $0.70 $0.69 ▪ Member of S&P High-Yield Dividend Aristocrats i
Slide 18: Questions
INVESTOR RELATIONS QUESTIONS