UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number 1-03480 MDU RESOURCES GROUP INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) For the qu ...

Part I [Business and Properties](index=7&type=section&id=Items%201%20and%202%20Business%20and%20Properties) The company operates regulated energy and construction businesses and plans to separate into two pure-play public companies - The company is organized into five reportable business segments: electric, natural gas distribution, pipeline, construction materials and contracting, and construction services[22](index=22&type=chunk) - On August 4, 2022, the company announced a plan to separate its construction materials business, Knife River, into an independent, publicly traded company through a tax-free spinoff, expected to be complete in Q2 2023[20](index=20&type=chunk) Employee Count by Business Segment as of December 31, 2022 | Business Segment | Total Employees | Male | Female | | :--- | :--- | :--- | :--- | | MDU Resources Group, Inc. | 283 | 170 | 113 | | MDU Energy Capital | 1,596 | 1,155 | 441 | | WBI Energy | 321 | 260 | 61 | | Knife River | 3,797 | 3,294 | 503 | | MDU Construction Services | 8,932 | 8,238 | 694 | | **Total** | **14,929** | **13,117** | **1,812** | [Electric](index=11&type=section&id=Electric) The electric segment serves 144,561 customers, generating $377.1 million in 2022 revenue while reducing its carbon intensity Electric Retail Customers and Revenues (2020-2022) | Customer Class | 2022 Customers | 2022 Revenues ($ thousands) | 2021 Customers | 2021 Revenues ($ thousands) | 2020 Customers | 2020 Revenues ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential | 119,398 | $135,412 | 119,113 | $123,043 | 118,893 | $122,545 | | Commercial | 23,327 | $142,722 | 23,149 | $133,336 | 23,050 | $131,207 | | Industrial | 230 | $42,937 | 231 | $40,477 | 230 | $36,736 | | Other | 1,606 | $7,335 | 1,610 | $6,754 | 1,609 | $6,601 | | **Total** | **144,561** | **$328,406** | **144,103** | **$303,610** | **143,782** | **$297,089** | - Approximately **37% of the electricity delivered** from Montana-Dakota's owned generation in 2022 was from renewable resources[53](index=53&type=chunk) - The company ceased operations at two coal-fired stations and began construction on an **88-MW natural gas peaking unit**, expected to be in service in summer 2023[54](index=54&type=chunk) [Natural Gas Distribution](index=15&type=section&id=Natural%20Gas%20Distribution) The natural gas segment serves over one million customers across eight states, generating $1.27 billion in 2022 revenue Natural Gas Distribution Retail Customers and Revenues (2020-2022) | Customer Class | 2022 Customers | 2022 Revenues ($ thousands) | 2021 Customers | 2021 Revenues ($ thousands) | 2020 Customers | 2020 Revenues ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential | 922,266 | $715,494 | 905,535 | $548,091 | 887,429 | $480,466 | | Commercial | 111,478 | $450,932 | 110,196 | $330,468 | 108,788 | $281,175 | | Industrial | 1,077 | $41,466 | 939 | $31,103 | 929 | $26,217 | | **Total** | **1,034,821** | **$1,207,892** | **1,016,670** | **$909,662** | **997,146** | **$787,858** | - The segment's retail rate schedules include clauses for adjusting rates based on changes in natural gas commodity, transportation, and storage costs[83](index=83&type=chunk) - Cascade expects to incur capital expenditures for compliance with Oregon and Washington climate programs, estimated at **$4.3 million in 2023** and **$19.1 million in 2024**[92](index=92&type=chunk) [Pipeline](index=17&type=section&id=Pipeline) The pipeline segment operates 3,800 miles of transmission lines and storage facilities with 193 Bcf of working gas capacity - WBI Energy Transmission's regulated business operates approximately **3,800 miles of natural gas transmission** and storage lines and is subject to FERC jurisdiction[95](index=95&type=chunk)[96](index=96&type=chunk) - The segment's underground storage facilities have a certificated capacity of approximately 350 Bcf, including **193 Bcf of working gas capacity**[99](index=99&type=chunk) - Affiliate Montana-Dakota is the largest firm customer, representing **22% of subscribed firm transportation contract demand** in 2022[102](index=102&type=chunk) [Construction Materials and Contracting](index=19&type=section&id=Construction%20Materials%20and%20Contracting) The Knife River segment supplies construction aggregates and materials, holding 1.1 billion tons of proven and probable reserves Aggregate Production and Sites by State (as of Dec 31, 2022) | Production Area | Total Annual Aggregate Production (Tons in thousands) | Aggregate Sites (Owned/Leased) | | :--- | :--- | :--- | | | **Crushed Stone** | **Sand & Gravel** | **Crushed Stone** | **Sand & Gravel** | | Alaska | — | 1,041 | 0 / 0 | 1 / 0 | | California | 377 | 1,665 | 0 / 2 | 8 / 1 | | Hawaii | 1,470 | — | 0 / 5 | 0 / 0 | | Idaho | 5 | 2,339 | 0 / 1 | 6 / 3 | | Minnesota | 375 | 2,410 | 3 / 1 | 48 / 8 | | Montana | — | 3,043 | 0 / 0 | 11 / 2 | | North Dakota | — | 897 | 0 / 0 | 3 / 12 | | Oregon | 6,882 | 4,017 | 11 / 12 | 19 / 9 | | South Dakota | 1,878 | 2,226 | 2 / 0 | 1 / 3 | | Texas | 1,181 | 167 | 4 / 1 | 1 / 0 | | Wyoming | 1,166 | 1,043 | 2 / 6 | 1 / 4 | | **Total** | **13,334** | **18,848** | **22 / 28** | **99 / 42** | Total Mineral Reserves by Type and State (Tons in thousands, as of Dec 31, 2022) | Production Area | Total Crushed Stone Reserves | Total Sand & Gravel Reserves | Total Mineral Reserves | | :--- | :--- | :--- | :--- | | Alaska | — | 12,542 | 12,542 | | California | 89,913 | 19,070 | 108,983 | | Hawaii | 43,626 | — | 43,626 | | Idaho | 230 | 33,603 | 33,833 | | Minnesota | 15,853 | 59,184 | 75,037 | | Montana | — | 70,930 | 70,930 | | North Dakota | — | 22,378 | 22,378 | | Oregon | 375,263 | 131,686 | 506,949 | | South Dakota | 32,706 | 3,284 | 35,990 | | Texas | 70,142 | 8,368 | 78,510 | | Wyoming | 88,477 | 28,710 | 117,187 | | **Total** | **716,210** | **389,755** | **1,105,965** | - The average selling price per ton in 2022 was **$16.12 for crushed stone** and **$10.53 for sand and gravel**[123](index=123&type=chunk)[127](index=127&type=chunk) [Construction Services](index=24&type=section&id=Construction%20Services) The construction services segment provides specialty contracting across the US, with one customer accounting for 15% of 2022 revenue - The segment provides a full spectrum of construction services, including electrical and mechanical contracting and transmission and distribution contracting[143](index=143&type=chunk) - The business operates in a highly competitive environment, with most work obtained through competitive bids or negotiated contracts[146](index=146&type=chunk) - In 2022, a single customer accounted for approximately **15% of the construction services segment's revenue**[147](index=147&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A%20Risk%20Factors) The company faces material risks from its planned business separation, economic volatility, aging infrastructure, and environmental regulations - The proposed separation of Knife River is subject to risks, including potential failure to complete the transaction and the risk that it may not qualify as a tax-free transaction, which could lead to **substantial tax liabilities**[152](index=152&type=chunk)[153](index=153&type=chunk) - Economic volatility and unfavorable conditions can negatively affect demand for construction products and services, as well as impact customer growth and energy usage[169](index=169&type=chunk)[170](index=170&type=chunk) - Significant portions of the company's natural gas pipelines and power generation facilities are aging, which **increases risks of failure** and higher maintenance costs[187](index=187&type=chunk) - Environmental laws and stakeholder actions related to climate change could **increase operating costs**, impact business plans, and require facility retirements[205](index=205&type=chunk)[207](index=207&type=chunk)[211](index=211&type=chunk) [Legal Proceedings](index=34&type=section&id=Item%203%20Legal%20Proceedings) The company discloses environmental proceedings with potential monetary sanctions exceeding its $1.0 million threshold - The company has adopted a **$1.0 million threshold** for disclosing proceedings arising under environmental provisions[231](index=231&type=chunk) - Detailed information regarding legal proceedings is provided in Note 21 to the Consolidated Financial Statements[232](index=232&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204%20Mine%20Safety%20Disclosures) Mine safety violation information required by the Dodd-Frank Act is provided in Exhibit 95 of the Form 10-K - Mine safety disclosures required by the Dodd-Frank Act are incorporated by reference from **Exhibit 95** of this report[233](index=233&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock (NYSE: MDU) has a history of 85 consecutive years of dividends, with minor share repurchases in Q4 2022 - The company's common stock trades on the NYSE under the symbol 'MDU' and has paid **uninterrupted dividends for 85 consecutive years**[234](index=234&type=chunk)[235](index=235&type=chunk) Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | October 1-31, 2022 | — | — | | November 1-30, 2022 | 40,800 | $30.64 | | December 1-31, 2022 | — | — | | **Total** | **40,800** | **$30.64** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Consolidated net income decreased to $367.5 million in 2022, driven by inflationary pressures and strategic business reviews - Consolidated earnings **decreased by $10.6 million** in 2022, primarily due to inflationary pressures in the construction materials business and higher operating expenses in the natural gas distribution business[246](index=246&type=chunk)[247](index=247&type=chunk) Consolidated Earnings by Segment (2020-2022) | Segment | 2022 Net Income (millions) | 2021 Net Income (millions) | 2020 Net Income (millions) | | :--- | :--- | :--- | :--- | | Electric | $57.1 | $51.9 | $55.6 | | Natural gas distribution | $45.2 | $51.6 | $44.0 | | Pipeline | $35.3 | $40.9 | $37.0 | | Construction materials and contracting | $116.2 | $129.8 | $147.3 | | Construction services | $124.8 | $109.4 | $109.7 | | Other | $(11.3) | $(5.9) | $(3.1) | | **Income from continuing operations** | **$367.3** | **$377.7** | **$390.5** | [Electric and Natural Gas Distribution](index=39&type=section&id=Electric%20and%20Natural%20Gas%20Distribution) The electric segment's net income rose on rate relief, while the natural gas segment's income fell due to higher operating costs Electric Segment Financial Summary | Metric (in millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Operating revenues | $377.1 | $349.6 | $332.0 | | Operating income | $79.7 | $66.3 | $63.4 | | Net income | $57.1 | $51.9 | $55.6 | Natural Gas Distribution Segment Financial Summary | Metric (in millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Operating revenues | $1,273.8 | $971.9 | $848.2 | | Operating income | $91.9 | $89.2 | $73.1 | | Net income | $45.2 | $51.6 | $44.0 | - The company expects the electric and natural gas distribution segments to grow rate base by approximately **6% to 7% annually** over the next five years[272](index=272&type=chunk) [Pipeline](index=46&type=section&id=Pipeline) The pipeline segment's net income decreased to $35.3 million due to lower AFUDC and higher interest expense post-project completion Pipeline Segment Financial Summary | Metric (in millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Operating revenues | $155.6 | $142.6 | $143.9 | | Operating income | $55.5 | $48.1 | $49.4 | | Net income | $35.3 | $40.9 | $37.0 | - The North Bakken Expansion project was placed in service in February 2022, increasing transportation revenues by **$16.4 million** but also leading to higher depreciation and lower AFUDC[280](index=280&type=chunk)[288](index=288&type=chunk) - Future growth projects include the Wahpeton, Line Section 27, and Grasslands South expansions, with expected completion in 2023 and 2024[297](index=297&type=chunk)[298](index=298&type=chunk)[299](index=299&type=chunk) [Construction Materials and Contracting](index=49&type=section&id=Construction%20Materials%20and%20Contracting) The segment's net income fell to $116.2 million as cost inflation for materials and labor offset a 14% revenue increase Construction Materials and Contracting Segment Financial Summary | Metric (in millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Operating revenues | $2,534.7 | $2,228.9 | $2,178.0 | | Gross profit | $360.9 | $347.0 | $370.6 | | Net income | $116.2 | $129.8 | $147.3 | - Gross profit was negatively impacted by higher operating costs, including a **$59.3 million increase in asphalt oil costs** and a **$42.6 million increase in fuel costs**[311](index=311&type=chunk) - Backlog increased to **$935 million** at December 31, 2022, compared to $708 million at the end of 2021[316](index=316&type=chunk) [Construction Services](index=53&type=section&id=Construction%20Services) The segment's net income grew 14% to $124.8 million, driven by strong revenue growth from commercial projects and a higher backlog Construction Services Segment Financial Summary | Metric (in millions) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Operating revenues | $2,699.2 | $2,051.6 | $2,095.7 | | Gross profit | $276.0 | $247.9 | $258.3 | | Net income | $124.8 | $109.4 | $109.7 | - Revenue growth was driven by electrical and mechanical commercial projects, with a **$251.5 million increase in hospitality projects** and a **$121.8 million increase in data center projects**[326](index=326&type=chunk) Construction Services Backlog (Year-End) | Business Line (in millions) | 2022 | 2021 | | :--- | :--- | :--- | | Electrical & mechanical | $1,861 | $1,109 | | Transmission & distribution | $270 | $276 | | **Total** | **$2,131** | **$1,385** | [Liquidity and Capital Commitments](index=57&type=section&id=Liquidity%20and%20Capital%20Commitments) The company maintains strong liquidity with $510 million in operating cash flow and projects $647 million in 2023 capital expenditures Summary of Cash Flows (in millions) | Activity | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash from Operating activities | $510.0 | $495.8 | $768.4 | | Net cash used in Investing activities | $(638.9) | $(885.9) | $(630.2) | | Net cash from (used in) Financing activities | $155.2 | $384.7 | $(145.1) | Capital Expenditures (Actual and Estimated, in millions) | Segment | 2022 (Actual) | 2023 (Est.) | 2024 (Est.) | 2025 (Est.) | | :--- | :--- | :--- | :--- | :--- | | Electric | $134 | $112 | $127 | $130 | | Natural gas distribution | $240 | $224 | $311 | $260 | | Pipeline | $62 | $145 | $117 | $127 | | Construction materials and contracting | $182 | $125 | $183 | $173 | | Construction services | $36 | $38 | $34 | $34 | | Other | $3 | $3 | $4 | $4 | | **Total** | **$657** | **$647** | **$776** | **$728** | - Total equity as a percent of total capitalization was **54%** at December 31, 2022, compared to 55% at the end of 2021[360](index=360&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%207A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to commodity price and interest rate risks, managed through derivatives and financing strategies Long-Term Debt by Rate Type (as of Dec 31, 2022) | Rate Type | Total Amount ($ millions) | Weighted Average Interest Rate | | :--- | :--- | :--- | | Fixed rate | $2,302.8 | 4.4% | | Variable rate | $545.5 | 5.4% | - The company enters into commodity price derivative contracts to minimize price volatility for its customers, but these were not material as of year-end 2022[418](index=418&type=chunk) [Financial Statements and Supplementary Data](index=69&type=section&id=Item%208%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and the independent auditor's unqualified opinion - Management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022[423](index=423&type=chunk) - The independent auditor, Deloitte & Touche LLP, issued an **unqualified opinion** on the financial statements and on the effectiveness of internal control[425](index=425&type=chunk)[426](index=426&type=chunk) [Consolidated Statements of Income](index=74&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income (Years ended December 31) | (In thousands, except per share amounts) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Total operating revenues | $6,973,864 | $5,680,733 | $5,532,750 | | Total operating expenses | $6,399,911 | $5,146,514 | $4,987,825 | | Operating income | $573,953 | $534,219 | $544,925 | | Income from continuing operations | $367,276 | $377,731 | $390,527 | | Net income | $367,489 | $378,131 | $390,205 | | Earnings per share - diluted | $1.81 | $1.87 | $1.95 | [Consolidated Balance Sheets](index=76&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (As of December 31) | (In thousands) | 2022 | 2021 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $2,011,748 | $1,550,943 | | Net property, plant and equipment | $6,091,545 | $5,756,388 | | Goodwill | $763,500 | $765,386 | | **Total assets** | **$9,660,781** | **$8,910,435** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $1,479,603 | $1,092,240 | | Long-term debt | $2,763,394 | $2,593,847 | | Total noncurrent liabilities | $4,594,049 | $4,435,321 | | Total stockholders' equity | $3,587,129 | $3,382,874 | | **Total liabilities and stockholders' equity** | **$9,660,781** | **$8,910,435** | [Consolidated Statements of Cash Flows](index=78&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Years ended December 31) | (In thousands) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $510,064 | $495,777 | $768,374 | | Net cash used in investing activities | $(638,881) | $(885,878) | $(630,243) | | Net cash provided by (used in) financing activities | $155,173 | $384,715 | $(145,043) | | Increase (decrease) in cash and cash equivalents | $26,356 | $(5,386) | $(6,912) | [Notes to Consolidated Financial Statements](index=79&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment data, financial instruments, debt, and significant commitments [Controls and Procedures](index=122&type=section&id=Item%209A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of year-end 2022, with no material changes in the fourth quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[712](index=712&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the fourth quarter of 2022[713](index=713&type=chunk) Part III Part III incorporates information by reference from the company's 2023 Proxy Statement [Directors, Executive Officers and Corporate Governance](index=123&type=section&id=Item%2010%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, officers, and governance is incorporated by reference from the company's 2023 Proxy Statement - Information regarding directors, executive officers, and corporate governance is **incorporated by reference** from the company's upcoming Proxy Statement[719](index=719&type=chunk) [Executive Compensation](index=123&type=section&id=Item%2011%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2023 Proxy Statement - Information regarding executive compensation is **incorporated by reference** from the company's upcoming Proxy Statement[720](index=720&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=123&type=section&id=Item%2012%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Over 2.6 million securities remain available for future issuance under stockholder-approved equity compensation plans Equity Compensation Plan Information (as of Dec 31, 2022) | Plan Category | Securities to be Issued Upon Exercise | Securities Remaining for Future Issuance | | :--- | :--- | :--- | | Equity compensation plans approved by stockholders | 754,044 | 2,635,636 | | Equity compensation plans not approved by stockholders | N/A | N/A | | **Total** | **754,044** | **2,635,636** | [Certain Relationships and Related Transactions, and Director Independence](index=123&type=section&id=Item%2013%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the 2023 Proxy Statement - Information regarding related transactions and director independence is **incorporated by reference** from the company's upcoming Proxy Statement[725](index=725&type=chunk) [Principal Accountant Fees and Services](index=123&type=section&id=Item%2014%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement - Information regarding principal accountant fees and services is **incorporated by reference** from the company's upcoming Proxy Statement[726](index=726&type=chunk) Part IV Part IV contains the list of exhibits and financial statement schedules filed with the Form 10-K [Exhibits, Financial Statement Schedules](index=124&type=section&id=Item%2015%20Exhibits%2C%20Financial%20Statement%20Schedules) This section indexes financial statements, schedules, and exhibits, including condensed parent company financials - This section lists all financial statements, schedules, and exhibits, with **Schedule I providing condensed financial information** for the parent company[728](index=728&type=chunk)[735](index=735&type=chunk)

MDU Resources Group, Inc. (NYSE:MDU) Q3 2022 Results Conference Call November 3, 2022 8:30 AM ET Company Participants Jason Vollmer - VP and CFO Dave Goodin - President and CEO Jeff Thiede - President and CEO, MDU Construction Services Group Dave Barney - President and CEO of Knife River Corporation Conference Call Participants Brian Russo - Sidoti Ryan Levine - Citibank Dariusz Lozny - Bank of America Operator Hello. My name is Lisa, and I will be your conference facilitator. At this time, I would like to ...

Financial Performance - The Company reported consolidated earnings of $147.9 million for the three months ended September 30, 2022, an increase of $8.6 million compared to $139.0 million in the same period of 2021[149]. - For the nine months ended September 30, 2022, consolidated earnings decreased by $41.2 million to $250.3 million, primarily due to increased operating expenses and lower returns on nonqualified benefit plan investments[151]. - Operating revenues for the electric segment increased by 4% to $278.6 million for the nine months ended September 30, 2022, compared to $267.7 million in the same period of 2021[164]. - Operating revenues for the natural gas distribution segment increased by 29% to $793.3 million for the nine months ended September 30, 2022, compared to $614.8 million in the same period of 2021[169]. - Operating revenues for the three months ended September 30, 2022, were $975.4 million, a 17% increase from $831.3 million in the same period of 2021[203]. - Operating income for the nine months ended September 30, 2022, decreased by 8% to $157.1 million compared to $171.3 million in the prior year[203]. - Net income for the three months ended September 30, 2022, rose by 21% to $28.0 million, compared to $23.1 million in the same period of 2021[220]. Business Segments Performance - The construction materials and contracting business saw earnings benefit from higher average pricing on materials and increased workloads, despite inflationary pressures impacting costs[150]. - The electric business experienced positive impacts from interim rate relief and lower operation costs due to coal-fired plant closures, while the natural gas distribution business faced increased seasonal losses[150]. - The construction services business reported increased earnings driven by higher commercial and service margins, despite overall inflationary pressures[151]. - The pipeline segment's operating revenues for the three months ended September 30, 2022, were $39.7 million, a 14% increase from $34.9 million in the same period of 2021[185]. - The construction services segment's revenue increased by $266.4 million, driven by higher average selling prices and increased asphalt and aggregate sales volumes[210]. Strategic Initiatives - The Company is planning a tax-free spinoff of Knife River, expected to be completed in 2023, subject to regulatory approvals and other conditions[141]. - The Company is pursuing a strategic review process to create two pure-play companies, enhancing focus on construction materials and regulated energy delivery[142]. - The company plans to separate its construction materials and contracting segment into a standalone publicly traded company, expected to be completed in 2023[208]. - The company is focused on organic growth and operational improvements in its electric and natural gas distribution segments, with an emphasis on infrastructure modernization and customer base expansion[155]. Economic and Market Conditions - Rising inflation and interest rates are expected to continue impacting the Company's operations, with increased borrowing costs and potential effects on customer purchasing power[143]. - The company is actively monitoring supply chain disruptions and inflationary pressures affecting raw materials and equipment delivery, anticipating these challenges to persist into 2023[161]. - The company anticipates continued inflationary pressures and national supply chain challenges throughout 2022 and into 2023, impacting operating results[217]. Capital Expenditures and Financing - Capital expenditures for the first nine months of 2022 were $451.1 million, compared to $507.9 million in the same period of 2021[240]. - The company expects total capital expenditures for 2022 to be approximately $702 million, reflecting updates due to project timeline and scope changes[240]. - The Company issued $50.0 million of senior notes at a weighted average interest rate of 4.50% with maturity dates from June 15, 2032, to June 15, 2052[251]. - Future estimated interest payments increased by 12% since December 31, 2021, due to higher debt balances and rising interest rates[261]. Backlog and Future Growth - The construction materials and contracting segment's backlog was strong at $895.0 million as of September 30, 2022, compared to $651.7 million a year earlier[212]. - The company expects to complete an estimated $1.67 billion of its backlog within the next 12 months[225]. - The company expects customer growth to average 1% to 2% per year, with a projected 5% annual growth in rate base over the next five years[172].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number 1-03480 MDU RESOURCES GROUP INC Indicate by check mark whether the registrant has submitted electronically every In ...

MDU Resources Group, Inc. (NYSE:MDU) Q2 2022 Results Conference Call August 4, 2022 8:30 AM ET Company Participants Jason Vollmer - VP and CFO Dave Goodin - President and CEO, MDU Resources Dave Barney - President and CEO, Knife River Corporation Jeff Thiede - President and CEO, MDU Construction Services Group Nicole Kivisto - President and CEO, Utilities Group Trevor Hastings - President and CEO of WBI Energy Stephanie Barth - Chief Accounting Officer and Controller of MDU Resources Conference Call Partici ...

Financial Performance - MDU Resources Group's second quarter earnings increased from $70.7 million in 2021 to $100.2 million in 2022[7] - The company's earnings per share (EPS) increased from $0.35 in 2021 to $0.50 in 2022[7] - Construction Services reported record earnings of $34.5 million, with revenues reaching an all-time high of $685.4 million, a 45% increase compared to $525.6 million in 2021[13] - Construction Materials reported earnings of $32.6 million, with record second quarter revenues of $711.8 million, compared to $633.8 million in 2021[16] - The Electric & Natural Gas Utility reported a loss of $2.9 million due to lower investment returns and higher O&M expenses[10, 11] - The Pipeline segment reported earnings of $7.1 million[12] Strategic Initiatives - MDU Resources announced a plan to separate Knife River into an independent, publicly traded company, expected to be completed in 2023[5] - The separation aims to enhance strategic focus, optimize capital structures, and tailor capital allocation strategies for each entity[29] Outlook and Guidance - Construction Services increased its 2022 revenue guidance range by $200 million, projecting revenues between $2.4 billion and $2.6 billion[22] - Construction Materials affirmed its 2022 revenue guidance in the range of $2.45 billion to $2.65 billion[24] - The company revised its consolidated EPS guidance for 2022 to $1.75 - $1.90[26] - Construction Services' backlog reached an all-time record of $1.92 billion, 46% higher than the $1.32 billion backlog in Q2 2021[22] - Construction Materials' backlog reached an all-time record of $1.13 billion, 24% higher than the $912 million backlog in Q2 2021[24]

EMDU RESOURCES Building a Strong America® May 5, 2022 FIRST QUARTER EARNINGS CALL NYSE | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | FORWARD-LOOKING STATEMENTS | | | During this presentation, we will make certain "forward-looking | | | statements" within the meani ...

MDU Resources Group, Inc. (NYSE:MDU) Q1 2022 Results Conference Call May 5, 2022 2:00 PM ET Company Participants Jason Vollmer - VP and CFO Dave Goodin - President and CEO, MDU Resources Dave Barney - President and CEO, Knife River Corporation Jeff Thiede - President and CEO, MDU Construction Services Group Nicole Kivisto - President and CEO, Utilities Group Conference Call Participants Dariusz Lozny - Bank of America Ryan Levine - Citi Brent Thielman - D.A. Davidson Brian Russo - Sidoti Operator Hello. My ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number 1-03480 MDU RESOURCES GROUP INC (Exact name of registrant as specified in its charter) (State or other jurisdictio ...