MDU Resources Announces Second Quarter 2025 Results, Updates Guidance

About this update from Mdu Resources Group, Inc.

BISMARCK - MDU Resources Group, Inc. (NYSE: MDU) announced second quarter financial results for 2025, with sustained momentum in the pipeline segment and regulatory progress supporting the company's long-term value proposition as a pure-play regulated energy delivery business. 'We continued our solid start to 2025, despite weather and operating cost challenges that impacted the second quarter results,' said Nicole A. Kivisto , president and CEO of MDU Resources . 'We continue to invest in infrastructure, including customer driven growth projects at our pipeline, and advance prudent rate proceedings across multiple jurisdictions.' The following summarizes the company's results for the three and six months ended June 30 , for 2024 and 2025: 'We've narrowed our full-year earnings guidance, reflecting our view midway through the year,' Kivisto added. 'Weather conditions and operation and maintenance expense impacted our second quarter results; however, we remain confident in our ability to execute on our long-term growth strategy. We believe our operational focus and financial discipline continue to position us well for delivering safe and reliable energy, customer value and strong stockholder returns.' Electric Utility Segment Rate Relief and Higher Retail Sales Volumes Offset by Increased Operation and Maintenance Expense Retail sales volumes increased 12.0%, driven by data center demand Continued customer growth Operation and maintenance costs increased due to higher payroll-related costs and a planned outage The electric utility segment earned $10.4 million in the second quarter of 2025, compared to $15.5 million in the second quarter of 2024. Higher payroll-related costs and a net of tax expense of $1.6 million in second quarter of 2025 for a planned outage at Coyote Station , contributed to increased operation and maintenance expense. These were partially offset by increased commercial sales volumes-notably from data center load-and rate relief in South Dakota . Electric Utility Regulatory Update North Dakota : Filed an application for Advanced Determination of Prudence and a Certificate of Public Convenience and Necessity for a 49% ownership interest in the Badger Wind Project , hearing is scheduled for Sept. 9, 2025 Wyoming : Filed a General Rate Case requesting a $7.5 million annual increase, anticipated to be effective May 1, 2026 Montana : An electric general rate case filing is planned for later this year Natural Gas Distribution Segment Regulatory Gains Offset by Increased Operation and Maintenance Expense and Unfavorable Weather Increased operation and maintenance expense due to higher payroll-related expenses Volumes declined due to warmer temperatures Rate relief in Washington and Montana partially offset seasonal losses Natural gas retail customer count increased 1.5% year-over-year The natural gas distribution segment reported a seasonal second quarter loss of $7.4 million , compared to a $5.0 million loss in the same period last year, mainly due to higher operation and maintenance expense primarily related to increased payroll-related expenses. Warmer weather year-over-year was a key challenge-particularly in Idaho . The company benefited from newly implemented rates in Washington and interim rates in Montana , and transportation revenue growth. Natural Gas Distribution Segment Regulatory Update Idaho : Filed a General Rate Case requesting $26.5 million annually with a requested effective date of Jan. 1, 2026 Montana : Filed a settlement agreement of $7.3 million annually, pending Montana Public Service Commission approval; interim rates in effect since Feb. 1, 2025 Washington : A revision to rates submitted on April 30, 2025 , related to projects that were not placed in service, reducing revenue by $3.7 million , effective June 1, 2025 Wyoming : Reached a settlement agreement requesting $2.1 million annually, pending formal approval Pipeline Segment Growth Projects Offset by Increased Operation and Maintenance Expense and Absence of a Customer Settlement Increased transportation revenue Continued strong customer demand for short-term firm transportation capacity Higher operation and maintenance expense due to payroll-related costs The pipeline segment had a strong second quarter, with earnings of $15.4 million , demonstrating consistent year-over-year performance, absent proceeds of $1.5 million , net of tax, from a customer settlement in the second quarter of 2024. Recent expansion projects placed in-service, including the Wahpeton Expansion, were key drivers in demand growth. Pipeline Segment Strategic Project Updates Minot Expansion Project : Construction began in May 2025 and will add approximately seven million cubic feet of natural gas transportation capacity per day. The project is expected to be in-service in the fourth quarter of this year. Bakken East Project : The company is continuing negotiations with interested parties on construction of an approximately 350 mile pipeline from western North Dakota to eastern North Dakota . The focus is on project timing and volumes to determine the feasibility of the project. The company is actively working with landowners to conduct environmental and civil surveys along the potential route. Baker Storage and Transportation Expansion: A binding open season for this proposed project concluded in May 2025 . The company is reviewing results and based on initial feedback is evaluating a smaller project to align with the customer interest received in the open season. The company continues to pursue several additional growth projects that are in various stages of development. Guidance MDU Resources is narrowing guidance, reflecting midyear performance and impacts from weather, and now expects earnings per share of $0.88 to $0.95 , based on the following assumptions Normal weather, economic and operating conditions Continued growth in utility customers at 1%-2% annually No equity issuances in 2025 Successful execution of approved capital investment and rate recovery plans About MDU Resources Group, Inc. MDU Resources Group Inc. , a member of the S&P SmallCap 600 index, strives to provide safe, reliable, affordable and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, working to provide reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. Contact: Brent Miller Tel: 701-530-1730 Byron Pfordte Tel: 208-377-6050 Cautionary Note Regarding Forward-Looking Statements This news release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events or developments that the company anticipates will or may occur in the future are based on underlying assumptions (many of which are based, in turn, upon further assumptions), including but not limited to, statements identified by the words 'anticipates,' 'estimates,' 'expects,' 'intends,' 'plans,' and 'predicts,' in each case related to such things as growth estimates, stockholder value creation, the company's 'CORE' strategy, capital expenditures, financial guidance, trends, objectives, goals, dividend payout ratio targets, strategies and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the company's filings with the U.S. Securities and Exchange Commission . While made in good faith, these forward-looking statements are based largely on the company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond the company's control. Any changes in such assumptions or factors could produce significantly different results. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. (C) 2025 Electronic News Publishing, source ENP Newswire

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