Core Points - MDU Resources Group, Inc. will host its third quarter 2025 earnings conference call on November 6, 2025, at 2 p.m. ET, with results released before U.S. markets open that day [1] - The webcast will be accessible on the company's website under the "Investors" section, with a replay available after the event [2] - MDU Resources serves over 1.2 million customers in the Pacific Northwest and Midwest, focusing on safe, reliable, and environmentally responsible utility services [3] - The company operates a natural gas pipeline network exceeding 3,800 miles, ensuring energy delivery across the Northern Plains [3] - MDU Resources has a legacy of over a century in the energy sector, emphasizing its commitment to energizing lives for a better tomorrow [3]

Core Insights - MDU Resources Group, Inc. is recognized for its significant upside potential and is included in the list of the 13 Best Diversified Stocks to Buy according to hedge funds [1] - Jefferies upgraded MDU from 'Hold' to 'Buy' and raised its price target from $18 to $20, citing attractive valuation and growth potential [2] - The company is considered undervalued relative to its core business, even after accounting for potential benefits from the Bakken East Pipeline project [3] Financial Performance - MDU Resources Group has a healthy dividend yield of 3.48% and consistent earnings growth of 6-8% annually [3] - The path for the company's regulated energy delivery operations is clear as uncertainty following the spin-off subsides [3] Business Segments - MDU provides regulated energy delivery services across the U.S. through its Electric, Natural Gas Distribution, and Pipeline segments [4] - The upcoming pipeline announcement is viewed as a potential catalyst for the stock to be re-rated by the market [3]

With significant upside potential, MDU Resources Group, Inc. (NYSE:MDU) secures a spot on our list of the 13 Best Diversified Stocks to Buy According to Hedge Funds. Jefferies Upgrades MDU Resources Group, Inc. (MDU) from ‘Hold’ to ‘Buy’, Raises PT to $20 On September 19, 2025, Jefferies upgraded MDU Resources Group, Inc. (NYSE:MDU) from ‘Hold’ to ‘Buy’, raising its price target from $18 to $20. The investment firm cited the company’s attractive valuation and growth potential. Even after factoring poten ...

Core Insights - MDU Resources Group, Inc. announced that its subsidiary, Montana-Dakota Utilities Co., received an Advanced Determination of Prudence (ADP) and Certificate of Public Convenience and Necessity (CPCN) from the North Dakota Public Service Commission for acquiring a 49% stake in the Badger Wind Farm [1][2] Group 1: Project Details - The Badger Wind project, currently under construction near Wishek, North Dakota, is expected to be completed by the end of 2025, with an estimated investment of approximately $294 million for a 122.5 MW stake in the net 250 MW wind project [2] - The ADP confirms that the project is prudent up to an investment of $295.5 million, which includes $1.5 million of internal costs capitalized as part of the project, providing a regulatory framework that supports the project's financial viability [2] Group 2: Company Overview - MDU Resources Group, Inc. is a member of the S&P SmallCap 600 index and provides electric utility and natural gas distribution services to over 1.2 million customers across the Pacific Northwest and Midwest [3] - The company's pipeline business operates a network of over 3,800 miles of natural gas pipelines and storage systems, ensuring reliable energy delivery across the Northern Plains [3]

Core Viewpoint - To be classified as a "Dividend Aristocrat," a company must consistently increase dividends for at least 20 consecutive years, attracting significant investor interest and demand for shares [1] Group 1: Dividend Growth Stocks - The SPDR S&P Dividend ETF has identified five dividend growth stocks with substantial upside potential compared to average analyst target prices over the next 12 months [2] - The identified stocks are MDU Resources Group Inc, VF Corp, Polaris Inc, Colgate-Palmolive Co, and MSA Safety Inc, each showing a notable percentage upside to their analyst targets [3][4] Group 2: Analyst Target Prices and Returns - MDU Resources Group Inc has a recent price of $25.76, with an average analyst target of $35.50, indicating a 37.81% upside potential [4] - VF Corp has a recent price of $57.49, with a target of $77.85, showing a 35.41% upside [4] - Polaris Inc's recent price is $110.26, with a target of $143.67, reflecting a 30.30% upside [4] - Colgate-Palmolive Co has a recent price of $72.20, with a target of $88.10, indicating a 22.02% upside [4] - MSA Safety Inc has a recent price of $136.62, with a target of $166.00, showing a 21.50% upside [4] - The expected total return for these stocks combines share price upside and dividend yield, with MDU Resources Group Inc showing a total return potential of 41.19% [4] Group 3: Dividend Growth Rates - MDU Resources Group Inc's trailing twelve months (TTM) dividend increased from $0.842 to $0.862, reflecting a growth of 2.38% [5] - VF Corp's TTM dividend grew from $1.94 to $1.98, a growth of 2.06% [5] - Polaris Inc's TTM dividend increased from $2.49 to $2.53, showing a growth of 1.61% [5] - Colgate-Palmolive Co's TTM dividend rose from $1.76 to $1.80, reflecting a growth of 2.27% [5] - MSA Safety Inc's TTM dividend increased from $1.72 to $1.76, showing a growth of 2.33% [5]

Group 1 - The stock of MDU Resources Group, Inc. (MDU) is experiencing significant attention due to high implied volatility in the options market, particularly for the Oct 17, 2025 $10.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in MDU's stock price, potentially due to an upcoming event [2] - MDU Resources Group holds a Zacks Rank 3 (Hold) in the Utility - Gas Distribution industry, which is in the top 40% of the Zacks Industry Rank, with recent analyst estimates for the current quarter increasing from three cents per share to 13 cents [3] Group 2 - The high implied volatility surrounding MDU could indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Core Viewpoint - MDU Resources is focusing on its regulated energy delivery business following the spinoff of Knife River and Everus Construction, with long-term capital investments aimed at improving service reliability and expanding its customer base [1][2] Group 1: Growth Opportunities - MDU Resources anticipates long-term earnings per share (EPS) growth of 6-8% and expects to see 1-2% annual customer growth in its electric and natural gas segments through 2026 [2][8] - The company plans to invest approximately $3.1 billion in regulated capital expenditures from 2025 to 2029 to enhance service reliability and accommodate a growing customer base [3][8] - MDU has signed electric service agreements for 580 megawatts (MW) of data center load, with 180 MW currently online and additional capacity expected to come online in the coming years [4][8] Group 2: Challenges - A significant portion of MDU's natural gas pipelines and transmission facilities is aging, which poses risks of equipment failure, pipeline leaks, and power line fires, potentially impacting operational results [5] - The company's operations are highly seasonal, leading to significant fluctuations in revenues and expenses across quarterly periods [6] Group 3: Stock Performance - Over the past month, MDU's shares have decreased by 7.1%, contrasting with a 1.4% growth in the industry [7]

Core Viewpoint - MDU Resources has announced a 7.7% increase in its quarterly dividend rate, raising it to 14 cents per share, reflecting the company's commitment to providing reliable long-term value to its investors [1][11]. Dividend Increase - The new annualized dividend is now 56 cents per share, up from 52 cents, with a current dividend yield of 3.16%, significantly higher than the Zacks S&P 500 composite average of 1.15% [2][11]. Historical Performance - MDU Resources has maintained uninterrupted dividend payments for 87 years, showcasing its reliability and dedication to shareholder returns [3][11]. Growth Prospects - The company anticipates long-term earnings per share growth of 6-8% and expects to see 1-2% customer growth annually in its electric and natural gas segments through 2026 [4][5]. Capital Expenditures - MDU Resources plans to invest $3.06 billion from 2025 to 2029 to enhance the reliability of its services and accommodate a growing customer base [5]. Data Center Opportunities - MDU has secured electric service agreements for 580 megawatts (MW) of data center load, with 180 MW currently online and an additional 100 MW expected to come online later this year [6]. Industry Context - The utility sector is characterized by stable operations and earnings, allowing companies like MDU to reward shareholders with regular dividends. Other companies in the sector, such as Chesapeake Utilities, The Southern Company, and PPL Corporation, have also recently increased their dividend rates [7].

Core Insights - MDU Resources Group, Inc. has elected Charles M. Kelley and Tammy J. Miller to its board of directors, effective August 12, 2025 [1] Group 1: Board Members' Backgrounds - Charles M. Kelley has over 40 years of experience in the natural gas industry, including a 25-year tenure at ONEOK, Inc., where he oversaw over $600 million in capital projects and significantly increased EBITDA [2] - Tammy J. Miller, former lieutenant governor of North Dakota, was CEO and board chair of Border States, growing the company from $485 million to nearly $2.5 billion in annual sales during her leadership [3] Group 2: Contributions to MDU Resources - Kelley is expected to provide valuable insights into pipeline development and regulatory strategy, aiding MDU Resources' pipeline subsidiary, WBI Energy, in pursuing growth opportunities in natural gas transmission and storage [2] - Miller's experience in public service and business is anticipated to align well with MDU Resources' mission and geographic footprint, enhancing the company's engagement with utilities and policymakers [3] Group 3: Company Overview - MDU Resources Group, Inc. serves over 1.2 million customers across the Pacific Northwest and Midwest, focusing on safe, reliable, and environmentally responsible electric utility and natural gas distribution services [5] - The company's pipeline business operates a network of over 3,800 miles of natural gas pipelines and storage systems, ensuring reliable energy delivery across the Northern Plains [5]

Group 1 - MDU Resources Group, Inc. operates as a holding company for electric and natural gas utilities, as well as a pipeline, WBI Energy, serving approximately 1.2 million customers, which includes about 10% of natural gas and electricity customers [1] - Laura Starks, founder and CEO of Starks Energy Economics, has extensive experience in the energy sector, covering various areas including utilities, independent power producers, and all sectors of oil and natural gas [1]