Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q1 2024 Earnings Presentation
20 slides from Mdu Resources's earnings presentation, May 2, 2024
Slide 1: First Quarter Earnings Call
First Quarter Earnings Call May 2, 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 new transportation and storage service rates, as approved by the FERC, which were effective Aug. 1, 2023 • Will continue to benefit from expansion projects placed in service in late 2023 and early 2024 • 2023 Line Section 27 expansion project was plac
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 $2.18 billion, compared to $2.10 billion as of March 31, 2023 • The Infrastructure Investment and Jobs Act and Inflation Redu
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 Electric
Slide 11: Reaffirmed 2024 Guidance
Reaffirmed 2024 Guidance Regulated Energy Delivery Everus • Earnings in the range of $170 million • Revenues expected to be in the to $180 million range of $2.9 billion to $3.1 billion, with margins comparable to 2023 • EBITDA in the range of $220 million to $240 million Guidance as of May 2, 2024 1
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 First Quarter Earnings
MDU Resources Group, Inc First Quarter Earnings EARNINGS EPS $120 $0.60 $106.6 $0.52 $100.9 $0.49 $100 $0.50 $87.1 $0.43 $80 $0.40 millions $60 $0.30 $38.3 $0.19 $40 $0.20 $20 $0.10 $- $- 2023 2024 2023 2024 GAAP Adjusted* GAAP Adjusted* *Adjusted to exclude costs associated with MDU Resources’ stra
Slide 15: Electric & Natural Gas Utility First Quarter Earnings
Electric & Natural Gas Utility First Quarter Earnings • Earnings of $58.0 million GAAP EARNINGS $60 $58.0 • Rate relief in certain electric and natural gas $55.5 jurisdictions $50 • Increased electric retail sales volumes, primarily from increased electricity usage at a $40 data center that began op
Slide 16: Pipeline First Quarter Earnings
Pipeline First Quarter Earnings • Record first quarter earnings of $15.1 GAAP EARNINGS million $16 $15.1 • Record first quarter transportation volumes, $14 primarily from expansion projects placed in service in late 2023 and early 2024 $12 • Increased North Bakken Expansion volume $10 commitments in
Slide 17: Everus First Quarter Earnings
Everus First Quarter Earnings • Earnings of $28.2 million, compared to GAAP EARNINGS $26.1 million in 2023 $30 $28.2 $26.1 • Strong demand for institutional work, particularly government and healthcare projects $25 • Margin improvement from efficiency gains on projects $20 • Increased transmission a
Slide 18: Questions
Questions 18
Slide 19: Appendix
Appendix 19
Slide 20: Reconciliation of 2024 EBITDA Guidance
Reconciliation of 2024 EBITDA Guidance As of May 2, 2024 Everus ($ 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, depletion and amortization 25.0 25.0 EBITDA from continuing operations1 $220.0 $240.0