Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q3 2020 Earnings Presentation
17 slides from Mdu Resources's earnings presentation, Nov 5, 2020
Slide 1: Third Quarter Earnings Call
NOV. 5, 2020 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: Mission statement: 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.
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 Utilities Group D
Slide 5: Third Quarter Earnings
THIRD QUARTER EARNINGS EARNINGS EPS $165 $0.90 $153.1 $150 $137.6 $0.76 $135 $0.75 $0.69 $120 $0.60 $105 $90 millions $0.45 $75 $60 $0.30 $45 $30 $0.15 $15 $- $0.00 2019 2020 2019 2020
Slide 6: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY THIRD QUARTER EARNINGS Reported net loss of $800,000 EARNINGS – Higher depreciation, depletion and $5 amortization expense from increased plant balances at both electric and natural gas – Higher operation and maintenance $0.7 expense at natural gas millions $0 – Part
Slide 7: Pipeline
PIPELINE THIRD QUARTER EARNINGS Reported earnings of $8.0 million EARNINGS – Higher transportation revenues from $10 organic growth projects placed in $8.0 service in 2019 and 2020 $7.7 – Strong demand for storage services also contributed to the increase in earnings millions $5 – Partially offset
Slide 8: Construction Services
CONSTRUCTION SERVICES THIRD QUARTER EARNINGS Reported record third quarter earnings of $29.8 million EARNINGS $35 – Higher workloads at the inside specialty $29.8 contracting line and higher outside $30 specialty contracting line workloads and margins had a positive impact on $25 $21.1 earnings $2
Slide 9: Construction Materials
CONSTRUCTION MATERIALS THIRD QUARTER EARNINGS Reported record third quarter EARNINGS earnings of $107.3 million $120 $107.3 – Earnings were positively impacted by $102.6 $100 higher margins driven across most product lines $80 – Higher margins from asphalt and millions asphalt-related products lar
Slide 10: Third Quarter Earnings Call
NOV. 5, 2020 THIRD QUARTER EARNINGS CALL DAVE GOODIN President & Chief Executive Officer
Slide 11: Electric & Natural Gas Outlook
ELECTRIC & NATURAL GAS 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 growth is expected to average 1-2 percent annually Ongoing natural gas rate cases in Monta
Slide 12: Pipeline Outlook
PIPELINE OUTLOOK North Bakken Expansion project – FERC application filed in February 2020 – Filed FERC amendment application decreasing design capacity and associated project costs in July 2020 – Expected to start construction in early 2021 and be in service late the same year Organic growth opp
Slide 13: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Record third quarter revenues of $551.0 million, up from $479.6 million in 2019 Record third quarter backlog of $1.28 billion as of September 30, up from $1.20 billion in the third quarter 2019 2020 revenue guidance increased to a range of $2.00 billion to $2.15 b
Slide 14: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Opportunities for additional infrastructure work with the one- year extension of the FAST Act 2020 revenue guidance adjusted to a range of $2.15 billion to $2.25 billion with margins higher than 2019 1.1 billion tons of aggregate reserves Evaluating additional
Slide 15: 2020 EPS Guidance Updated
2020 EPS GUIDANCE UPDATED $1.80 - $1.90 Consolidated EPS Guidance Note: As of November 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 November 2019, making 29 $0.75 Annualized Dividend $0.75 consecutive years of increases Annualized dividend $0.83 per share $0.70 Member of S&P High-Yield Dividend Aristocrats index $0.65
Slide 17: Questions
INVESTOR RELATIONS QUESTIONS