Mdu Resources Group, Inc. · NYSE:MDU
Mdu Resources — Q2 2021 Earnings Presentation
17 slides from Mdu Resources's earnings presentation, Aug 6, 2021
Slide 1: Second Quarter Earnings Call
August 5, 2021 SECOND QUARTER EARNINGS CALL JASON VOLLMER Vice President & Chief Financial Officer
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: 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. Dave Barn
Slide 4: Second Quarter Earnings
SECOND QUARTER EARNINGS EARNINGS EPS $120 $0.60 $99.7 $100.2 $0.50 $0.50 $100 $0.50 $80 $0.40 millions $60 $0.30 $40 $0.20 $20 $0.10 $- $0.00 2020 2021 2020 2021
Slide 5: Electric & Natural Gas Utility
ELECTRIC & NATURAL GAS UTILITY SECOND QUARTER EARNINGS Reported earnings of $9.6 million EARNINGS – Earnings were impacted by higher $20 operating expenses, primarily labor- related costs – Lower investment returns on certain benefit plans also impacted earnings $11.2 $9.6 millions – Rate recovery
Slide 6: Pipeline
PIPELINE SECOND QUARTER EARNINGS Reported earnings of $9.2 million EARNINGS – Higher non-regulated project revenues $10 $9.0 $9.2 and higher AFUDC drove the increase in earnings – Partially offset by higher operation and maintenance expense, primarily the result of costs associated with the millio
Slide 7: Construction Services
CONSTRUCTION SERVICES SECOND QUARTER EARNINGS Reported record second quarter earnings EARNINGS of $28.9 million $35 – Increase driven by higher inside specialty contracting workloads from $30 $27.9 $28.9 strong demand from commercial and $25 industrial work, as well as higher outside specialty con
Slide 8: Construction Materials
CONSTRUCTION MATERIALS SECOND QUARTER EARNINGS Reported earnings of $51.4 million EARNINGS – Earnings decrease driven by higher $60 selling, general and administrative $53.0 $51.4 expense, primarily labor related $50 expenses – Lower returns on certain benefit plans $40 also negatively impacted re
Slide 9: Second Quarter Earnings Call
August 5, 2021 SECOND QUARTER EARNINGS CALL DAVE GOODIN President & Chief Executive Officer
Slide 10: 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 base expected to continue growing by 1- 2% annually Focused on timely regulatory recovery
Slide 11: Pipeline Outlook
PIPELINE OUTLOOK North Bakken Expansion project – Construction began mid-July on this pipeline expansion in western North Dakota that will have capacity to transport 250 million cubic feet of natural gas per day – Expected to be in service by the end of 2021, with favorable weather Wahpeton Expa
Slide 12: Construction Services Outlook
CONSTRUCTION SERVICES OUTLOOK Record second quarter revenues of $525.6 million Record backlog of $1.32 billion as of June 30 2021 revenue guidance in a range of $2.1 billion to $2.3 billion with margins comparable to or slightly higher than 2020 levels Continues to see strong inside specialt
Slide 13: Construction Materials Outlook
CONSTRUCTION MATERIALS OUTLOOK Second quarter revenues of $633.8 million Second quarter backlog of $912 million, compared to the prior year’s backlog of $875 million 2021 revenue guidance in a range of $2.1 billion to $2.3 billion with margins comparable to 2020 levels 1.1 billion tons of ag
Slide 14: 2021 EPS Guidance Affirmed
2021 EPS GUIDANCE AFFIRMED $2.00 - $2.15 Consolidated EPS Guidance Note: As of August 4, 2021 5 - 8% Long-Term Compound Annual Growth Rate Target 14
Slide 15: Capital Expenditures
CAPITAL EXPENDITURES Electric and natural gas utility − System infrastructure upgrades and $900.00 replacements $46 $800.00 − Natural gas combustion turbine $700.00 $34 Pipeline $202 $35 $600.00 $154 (millions) − North Bakken expansion $500.00 $150 Construction materials and services $230 $74
Slide 16: Dividend Growth
DIVIDEND $0.90 GROWTH $0.85 $0.85 83 consecutive years of quarterly dividend payments Dividend increased $0.80 November 2020, making 30 Annualized Dividend $0.77 consecutive years of increases $0.75 Annualized dividend $0.85 per share Member of S&P High-Yield $0.70 Dividend Aristocrats index
Slide 17: Questions
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