Slide 1: 2019 Earnings & 2020 Guidance Conference Call
FEBRUARY 5, 2020 JASON VOLLMER VICE PRESIDENT, CFO & TREASURER 2019 EARNINGS & 2020 GUIDANCE CONFERENCE CALL
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: Mission statement: create superior shareholder value with integrity
“ 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: 2019 Earnings
2019 EARNINGS EARNINGS EPS $350 $335.5 $2.00 $1.69 $300 $1.75 $272.3 $1.50 $1.39 $250 $1.25 $200 millions $1.00 $150 $0.75 $100 $0.50 $50 $0.25 $0 $0.00 2018 2019 2018 2019 5
Slide 6: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY YEAR-END 2019 EARNINGS Reported record earnings of $94.3 million – Higher natural gas distribution retail sales $100 $94.3 margins driven by a 9.9% volume increase and $84.7 higher electric margins from approved rate recovery in Montana had a positive impact $80 on e
Slide 7: Pipeline & Midstream
PIPELINE & MIDSTREAM YEAR-END 2019 EARNINGS Reported earnings of $29.6 million $35 – Increased revenues from record $29.6 transportation volumes due to organic $30 $28.5 growth projects and higher customer $25 rates had a positive impact on earnings – Higher revenues were partially offset by milli
Slide 8: Construction Services
CONSTRUCTION SERVICES YEAR-END 2019 EARNINGS Reported record earnings of $93.0 million $100 $93.0 – Higher inside specialty contracting margins as a result of increased workloads in several $80 industries – Higher outside contracting margins from strong $64.3 utility customer demand $60 millions –
Slide 9: Construction Materials
CONSTRUCTION MATERIALS YEAR-END 2019 EARNINGS Reported earnings of $120.4 million $150 – Higher contracting and materials revenues $135 from strong economies in several states and $120.4 higher materials volumes relating to $120 acquisitions made since the third quarter of $105 2018 $92.6 $90 – Al
Slide 10: 2019 Earnings & 2020 Guidance Conference Call
FEBRUARY 5, 2020 DAVE GOODIN PRESIDENT & CEO 2019 EARNINGS & 2020 GUIDANCE CONFERENCE CALL
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 Demicks Lake Expansion project – Will increase capacity, as designed, by 175 million cubic feet per day – Brought into service on February 4th 2020 North Bakken Expansion project – Will increase capacity, as designed, by an estimated 350 million cubic feet per day –
Slide 13: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Ended 2019 with record year-end backlog of $1.14 billion, up 22% from $939 million in 2018 2020 revenue guidance range of $1.85 billion to $2.05 billion – Margins comparable to or slightly higher than 2019 Demand for specialty contracting work in the following are
Slide 14: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Year-end backlog of $693 million, compared to record year-end backlog of $706 million in 2018 2020 revenue guidance range of $2.2 billion to $2.4 billion – Margins comparable to or slightly higher than 2019 Economic conditions continue to be strong in many states
Slide 15: 2020 EPS Guidance Initiated
2020 EPS GUIDANCE INITIATED $1.65 – $1.85 Consolidated EPS Guidance Note: As of February 4, 2020 5 - 8% Long-Term Compound Annual Growth Rate Target 15
Slide 16: Dividend Growth
DIVIDEND $0.85 GROWTH $0.83 82 consecutive years of $0.80 quarterly dividend payments Dividend increased Annualized Dividend Rate November 2019, making 29 $0.75 $0.75 consecutive years of increases 2019 annualized dividend $0.83 per share $0.70 Member of S&P High-Yield Dividend Aristocrats i
Slide 17: Questions
INVESTOR RELATIONS QUESTIONS