Investors interested in stocks from the Utility - Gas Distribution sector have probably already heard of ONE Gas (OGS) and MDU Resources (MDU) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our ...

Group 1 - MDU Resources Group, Inc. will host a year-end 2025 earnings conference call on February 5, 2026, 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, specifically in "Events & Presentations" [1] - A replay of the webcast will be available after the live event at the same location [1] Group 2 - MDU Resources Group Inc. is part of the S&P SmallCap 600 index and provides electric utility and natural gas distribution services to over 1.2 million customers in the Pacific Northwest and Midwest [2] - The company operates a natural gas pipeline network exceeding 3,800 miles, ensuring reliable energy delivery across the Northern Plains [2] - MDU Resources has a legacy of over a century and focuses on delivering safe, reliable, cost-effective, and environmentally responsible energy solutions [2]

Core Viewpoint - Investors are evaluating ONE Gas (OGS) and MDU Resources (MDU) to determine which stock offers better value for investment opportunities in the Utility - Gas Distribution sector [1] Group 1: Zacks Rank and Earnings Estimates - ONE Gas has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MDU Resources has a Zacks Rank of 3 (Hold), suggesting a less favorable earnings outlook [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, making OGS a more attractive option for investors seeking growth [3] Group 2: Valuation Metrics - OGS has a forward P/E ratio of 16.33, compared to MDU's forward P/E of 19.89, indicating that OGS may be undervalued relative to MDU [5] - The PEG ratio for OGS is 2.45, while MDU's PEG ratio is 2.63, suggesting that OGS has a more favorable earnings growth outlook relative to its price [5] - OGS has a P/B ratio of 1.45, slightly lower than MDU's P/B of 1.48, further supporting the argument that OGS is a better value investment [6] Group 3: Value Grades - OGS has been assigned a Value grade of B, while MDU has a Value grade of C, indicating that OGS is perceived as a more attractive investment based on traditional valuation metrics [6]

Core Insights - MDU Resources Group is benefiting from long-term capital investments aimed at expanding infrastructure to serve a growing customer base and spinoffs that allow a focus on the energy delivery business [1] Group 1: Financial Projections - The long-term earnings growth rate for MDU is projected at 7.56% over the next three to five years [1] - MDU anticipates capital expenditures of $531 million for 2025 and nearly $3.4 billion from 2026 to 2030 for upgrading and expanding its electric and natural gas infrastructure [2] - The company expects long-term earnings per share growth of 6-8% due to customer growth and increasing demand for its services [2] Group 2: Demand and Infrastructure Development - MDU is set to benefit from rising demand for clean energy from data centers, having signed electric service agreements for 580 megawatts (MW) of data center load [3] - Currently, 180 MW is online, with an additional 100 MW expected to come online later this year, and nearly 150 MW expected in both 2026 and 2027 [3] - The company is focused on its regulated energy delivery business following the spinoff of Knife River in 2023 and Everus Construction in 2024 [4] - MDU is working on several expansion projects, including the Line Section 32 Expansion project, which is expected to support a new electric generation facility in northwest North Dakota by late 2028 [4] Group 3: Market Performance - Over the past three months, MDU shares have gained 7.3%, contrasting with a 3.2% decline in the industry [6] - MDU is investing billions in infrastructure to support customer growth and rising service demand [7] Group 4: Competitive Positioning - MDU Resources currently holds a Zacks Rank 3 (Hold), while competitors such as ONE Gas, Inc., Spire Inc., and Atmos Energy Corp. have a better Zacks Rank 2 (Buy) [8] - The dividend yields for OGS, SR, and ATO are 3.49%, 4.01%, and 2.40%, respectively [8]

Core Viewpoint - Freedom Capital Markets initiated coverage on MDU Resources Group Inc. with a Hold rating and a $20 price target [1] Group 1: Company Operations and Financials - MDU's regulated electric, natural gas, and pipeline operations across eight U.S. states provide stable returns and predictable cost recovery over the long term [2] - Management plans to increase average annual capital expenditures by 27% between 2026 and 2030 compared to 2025 levels, supporting an earnings per share compound annual growth rate of 7.6% over the 2025–2030 period [2] - To fund growth, MDU announced an approximately $200 million equity issuance in addition to debt financing [3] - MDU targets a dividend payout ratio of 60% to 70%, with projected 2026 dividends of $0.58 per share, implying a 3% yield and a dividend CAGR of 10.3% through 2030 [3] Group 2: Market Outlook and Valuation - The medium-term macroeconomic outlook is viewed as supportive, with easing personal consumption expenditure inflation potentially aiding tariff-based cost recovery [4] - Near-term regulatory gaps could pressure results, contributing to the Hold recommendation [4] - The stock's valuation premium versus peers on P/E and EV/EBITDA multiples also supports the Hold recommendation [4]

Group 1 - The Harbor SMID Cap Value ETF experienced performance detractors, notably Synopsys (SNPS), which is recognized as a global leader in electronic design automation [2][3]

Core Insights - MDU Resource Group, Inc. (MDU) has announced a public offering of $200 million in equity shares through a forward sale agreement structure with major financial institutions [1][8] - The company has granted underwriters a 30-day option to purchase an additional $30 million in common stock [2][8] - Proceeds from the offering will be used for general business purposes, including debt repayment, capital expenditures, and acquiring a 49% stake in the Badger Wind Farm project [3][4][8] Financial Impact - The public offering will provide MDU with a $200 million capital infusion, allowing the company to pursue investment plans without increasing its debt burden [4] - The increase in the number of shares outstanding will dilute earnings per share, adding to the existing 205.3 million shares outstanding as of Q3 2025 [5] Growth Expectations - MDU anticipates utility customer growth at a rate of 1-2% annually and expects a long-term EPS growth rate of 6-8% [6] - The company has raised its capital plan to $3.4 billion for 2026-2030, reflecting ongoing investments in energy infrastructure [6] Stock Performance - Over the past three months, MDU's shares have increased by 19.9%, outperforming the industry's growth of 9.5% [7]

Core Viewpoint - MDU Resources Group, Inc. has announced a public offering of 10,152,284 shares of its common stock at a price of $19.70 per share, with the offering expected to close on or about December 5, 2025 [1][2]. Group 1: Offering Details - The underwriters for the offering include Wells Fargo Securities, BofA Securities, and J.P. Morgan, with TD Securities also acting as a bookrunner [2]. - The underwriters have the option to purchase an additional 1,522,842 shares, which may lead to further forward sale agreements [1][2]. - MDU Resources will not initially receive proceeds from the sale of shares by the forward sellers to the underwriters [4]. Group 2: Forward Sale Agreements - MDU Resources has entered into forward sale agreements with Wells Fargo Bank, Bank of America, and JPMorgan Chase Bank, agreeing to sell 10,152,284 shares at the initial forward sale price equal to the offering price [3]. - Settlement of the forward sale agreements is expected to occur within 24 months following the offering's completion, with options for cash or net share settlement [3]. Group 3: Use of Proceeds - If MDU Resources opts for physical settlement of the forward sale agreements, it plans to use the net proceeds for general corporate purposes, including debt repayment, capital expenditures, and acquisitions [4].

Core Viewpoint - MDU Resources Group, Inc. has initiated a public offering of $200 million in common stock, with the potential for an additional $30 million, to support various corporate purposes including debt repayment and capital expenditures [1][2]. Offering Details - The offering consists of $200 million in common stock, with underwriters Wells Fargo Securities, BofA Securities, and J.P. Morgan acting as joint lead bookrunners [1]. - MDU Resources plans to grant underwriters an option to purchase up to $30 million in additional shares [1]. - Shares will be sold through various methods including transactions on the New York Stock Exchange and negotiated transactions [1]. Forward Sale Agreements - MDU Resources will enter into forward sale agreements with Wells Fargo Bank, Bank of America, and JPMorgan Chase Bank, agreeing to sell approximately $200 million in shares at an initial forward sale price equal to the underwriters' purchase price [1]. - Settlement of these agreements is expected within 24 months following the offering [1]. Use of Proceeds - MDU Resources will not receive initial proceeds from the forward sellers' sales to underwriters. However, if physical settlement occurs, proceeds will be used for general corporate purposes, including debt repayment, capital expenditures, and acquisitions [1][2]. Company Overview - MDU Resources Group, Inc. is a member of the S&P SmallCap 600 index, providing electric utility and natural gas distribution services to over 1.2 million customers [2]. - The company operates a 3,800-mile natural gas pipeline network, ensuring reliable energy delivery across the Northern Plains [2].

Core Viewpoint - MDU Resources Group, Inc. announced a capital investment plan of $3.4 billion for the period from 2026 to 2030, representing a 34% increase compared to the previous five-year plan, emphasizing the company's commitment to sustainable growth and reliable energy delivery infrastructure [1][2]. Capital Investment Plan - The planned capital investments will focus on enhancing the company's regulated electric, natural gas distribution, and pipeline businesses, with specific allocations for each segment [3][4]. - Total capital expenditures are forecasted as follows: - Electric: $1.377 billion - Natural Gas: $1.354 billion - Pipeline: $643 million - Total for 2026-2030: $3.374 billion [4]. Electric Utility Investments - Investments in the electric utility sector will support system upgrades, substation improvements, and generation projects, including the acquisition of a 49% stake in Badger Wind Farm and the Jamestown to Ellendale transmission line project [4][5]. Natural Gas Distribution Investments - The natural gas distribution investments will focus on system replacements, expansions, and modernization to meet the demands of a growing customer base, particularly in fast-growing regions [5]. Pipeline Business Investments - The pipeline segment will support customer-driven projects, including the Line Section 32 Expansion Project and the Minot Industrial Expansion Project, while also focusing on system maintenance and capacity expansion [6]. Funding Strategy - The company anticipates equity issuance of $150 million to $175 million in 2026 and $100 million to $125 million in 2027 to support capital expenditures, with additional funding expected from internally generated cash flows and debt financing [7]. Strategic Growth and Earnings - The capital investment plan is expected to facilitate rate base growth of 7%-8% annually across regulated operations and maintain a long-term earnings per share growth target of 6%-8% [8].