Core Viewpoint - MDU Resources is currently viewed as a superior value option compared to ONE Gas based on various valuation metrics [7] Valuation Metrics - MDU Resources has a forward P/E ratio of 17.18, while ONE Gas has a forward P/E of 17.45 [5] - MDU's PEG ratio is 2.48, indicating a more favorable expected earnings growth rate compared to ONE Gas's PEG ratio of 3.14 [5] - MDU has a P/B ratio of 1.22, compared to ONE Gas's P/B ratio of 1.42, suggesting MDU is more undervalued relative to its book value [6] Earnings Outlook - Both MDU Resources and ONE Gas have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3]

Core Insights - MDU Resources Group Inc. reported second-quarter 2025 operating earnings per share (EPS) of 7 cents, missing the Zacks Consensus Estimate of 13 cents by 46.2% and reflecting a year-over-year decrease of 76.7% [1][8] - Total operating revenues for the second quarter increased by 1.9% to $351.2 million compared to $344.5 million in the same period of 2024 [2][8] - Operating income fell to $30.4 million, down 23% from $39.5 million in the prior year, while total operating expenses rose by 5.2% to nearly $320.8 million [3][8] Financial Performance - As of June 30, 2025, cash and cash equivalents stood at $58.8 million, a decrease from $66.9 million as of December 31, 2024 [4] - Net cash provided by operating activities for the first half of 2025 was $334.9 million, up from $301.6 million in the same period last year [4] Guidance and Expectations - MDU Resources has narrowed its 2025 earnings guidance to a range of 88-95 cents per share, compared to the previous range of 88-98 cents, with the Zacks Consensus Estimate at 95 cents [5][8] - The company anticipates utility customer growth to continue at a rate of 1-2% annually [5][8] Market Position - MDU Resources currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook in the market [6]

Financial Data and Key Metrics Changes - The company reported second quarter earnings of $13.7 million or $0.07 per share, compared to $60.4 million or $0.30 per share in the same period of 2024 [12] - Income from continuing operations was $14.1 million for the second quarter or $0.07 per share, down from $20.2 million or $0.10 per share in 2024 [12] - The company narrowed its earnings per share guidance to a range of $0.88 to $0.95 per share from a previous range of $0.88 to $0.98 per share [10] Business Line Data and Key Metrics Changes - The electric utility segment reported second quarter earnings of $10.4 million, down from $15.5 million in the same period in 2024, primarily due to higher payroll costs and planned outages [12][13] - The natural gas utility experienced a seasonal loss of $7.4 million in the second quarter, compared to a loss of $5 million in 2024, driven by increased operating expenses and lower volumes due to warmer weather [13] - The pipeline segment posted second quarter earnings of $15.4 million, down from a record $17.3 million in the prior year, impacted by higher operating expenses [14] Market Data and Key Metrics Changes - The utility experienced combined retail customer growth of 1.4% compared to the same time last year, aligning with the targeted annual growth rate of 1% to 2% [5] - The company has signed electric service agreements for 580 megawatts of data center load, with 180 megawatts currently online and additional capacity expected to come online in the coming years [7] Company Strategy and Development Direction - The company is focused on a capital investment of $3.1 billion over the next five years, targeting 7% to 8% compounded annual utility rate base growth and 1% to 2% annual customer growth [11] - The company plans to file general rate cases in Wyoming and Montana, and is refining wildfire mitigation plans across its electric service territory [6][8] - The company remains committed to investing in future expansion projects to meet customer demand, including the Minot expansion project which will add approximately 7 million cubic feet of natural gas transportation capacity per day [9] Management's Comments on Operating Environment and Future Outlook - Management noted unfavorable weather and increased operating costs impacted second quarter results, but expressed confidence in the company's long-term growth strategy [4][10] - The company anticipates a long-term EPS growth rate of 6% to 8% while targeting a 60% to 70% annual dividend payout ratio [11] - Management emphasized the importance of operational excellence and customer focus as key components of their strategy moving forward [11] Other Important Information - The company maintains a strong balance sheet and ample access to working capital, with no equity needs in 2025 based on the current capital plan [16] - The binding open season for the Baker storage field enhancement project concluded in May, and the company is evaluating a smaller project based on customer interest [10] Q&A Session Summary Question: Impact of lower storage project size on Bakken East pipeline - Management indicated that the Baker storage enhancement project does not have implications for the Bakken East project, and there may be opportunities for expansion if Bakken East proceeds [20][22] Question: Revised EPS guidance and its impact on long-term outlook - Management explained that the revision was due to weather impacts and higher operating expenses, but they do not expect these to be long-term trends [23][24] Question: North Dakota Industrial Commission meeting and its implications - Management confirmed the timing of the next meeting and indicated that state support would enhance the Bakken East project, but customer commitments are also crucial [29][30] Question: Quantifying drivers of guidance revision - Management provided insights on the planned outage and weather impacts, estimating a $1 million impact from weather alone in the quarter [33][34] Question: Capacity absorption for data centers before needing new infrastructure - Management stated that there is additional capacity available without new infrastructure, but they are willing to explore investments if necessary [36][38]

Company Strategy and Outlook - MDU Resources aims for a long-term EPS growth rate of 6%-8%[10] - The company targets an annual dividend payout ratio of 60%-70%[10] - MDU anticipates continued customer growth in the electric and natural gas sectors at a rate of 1%-2% annually[12][26] - The company narrows its 2025 earnings per share guidance to a range of $0.88 to $0.95[24] Regulatory Updates and Projects - Natural Gas Distribution in Montana: A settlement agreement is pending for an 8.6% or $7.3 million increase, with interim rates of 10.25% or $7.7 million already effective[13] - Natural Gas Distribution in Wyoming: A settlement agreement was approved for an 11.7% or $2.1 million increase, with rates effective August 1, 2025[13] - The company has signed electric service agreements for 580 MW of data center load[12][16] - MDU has a 49% ownership interest representing 122.5 MW in the Badger Wind Project, with a total capacity of 250 MW, and an estimated cost of $294 million[12][21] Financial Performance - MDU Resources Group's net income for the second quarter of 2025 was $14.1 million, or $0.07 per share, compared to $20.2 million, or $0.10 per share in 2024[31] - The Electric Utility reported earnings of $10.4 million, with retail sales volumes increasing 12.0%[34][35] - The Natural Gas Utility experienced a seasonal loss of $7.4 million, with customer count increasing 1.5% year-over-year[37][38] - The Pipeline segment reported earnings of $15.4 million[40]

[Definitions](index=4&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the financial report [Introduction](index=7&type=section&id=Introduction) MDU Resources Group, Inc. operates as a pure-play regulated energy delivery company, focusing on its CORE strategy after the Everus spinoff - Company's **'CORE' strategy** prioritizes customers and communities, operational excellence, returns focused initiatives and an employee driven culture[17](index=17&type=chunk) - Completed the tax-free separation of Everus, its former construction services business, on **October 31, 2024**, making Everus an independent, publicly-traded company[18](index=18&type=chunk) - As of June 30, 2025, the Company is organized into three reportable business segments: **electric, natural gas distribution, and pipeline**[19](index=19&type=chunk) [Part I -- Financial Information](index=8&type=section&id=Part%20I%20--%20Financial%20Information) This section presents the unaudited consolidated financial statements and management's discussion and analysis of the Company's financial performance [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, reflecting continuing operations after the Everus separation [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income%20--%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section presents the Company's consolidated revenues, expenses, and net income for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Income (Unaudited) - Key Figures | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $351,186 | $344,471 | $1,026,019 | $932,746 | | Operating income | $30,332 | $39,574 | $143,195 | $136,230 | | Income from continuing operations | $14,177 | $20,242 | $96,644 | $94,977 | | Discontinued operations, net of tax | $(397) | $40,194 | $(899) | $66,357 | | Net income | $13,780 | $60,436 | $95,745 | $161,334 | | Basic EPS - Continuing Operations | $0.07 | $0.10 | $0.47 | $0.47 | | Basic EPS - Discontinued Operations | — | $0.20 | — | $0.32 | | Basic EPS - Total | $0.07 | $0.30 | $0.47 | $0.79 | - Net income decreased by **$46.7 million** for the three months and **$65.6 million** for the six months ended June 30, 2025, primarily due to the absence of income from discontinued operations[25](index=25&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20--%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section details the Company's net income and other comprehensive income components for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Comprehensive Income (Unaudited) - Key Figures | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Net income | $13,780 | $60,436 | $95,745 | $161,334 | | Other comprehensive income | $120 | $139 | $312 | $213 | | Comprehensive income attributable to common stockholders | $13,900 | $60,575 | $96,057 | $161,547 | - Other comprehensive income for the six months ended June 30, 2025, increased to **$312 thousand** from **$213 thousand** in the prior year, driven by higher net unrealized gains on available-for-sale investments[27](index=27&type=chunk) [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets%20--%20June%2030,%202025%20and%202024,%20and%20December%2031,%202024) This section presents the Company's consolidated assets, liabilities, and equity at June 30, 2025, June 30, 2024, and December 31, 2024 Consolidated Balance Sheets (Unaudited) - Key Figures | Metric | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Total current assets | $441,926 | $1,397,039 | $666,259 | | Net property, plant and equipment | $5,434,557 | $5,146,669 | $5,344,292 | | Total assets | $6,945,917 | $7,960,336 | $7,038,818 | | Total current liabilities | $594,791 | $1,149,859 | $678,598 | | Total noncurrent liabilities | $3,619,222 | $3,792,673 | $3,669,646 | | Total stockholders' equity | $2,731,904 | $3,017,804 | $2,690,574 | - Total assets decreased by approximately **$1.01 billion** from June 30, 2024, to June 30, 2025, largely due to the absence of discontinued operations assets[30](index=30&type=chunk) - Total current assets decreased by **$955.1 million** from June 30, 2024, to June 30, 2025, primarily due to the removal of current assets of discontinued operations (**$859.9 million**)[30](index=30&type=chunk)[45](index=45&type=chunk) [Consolidated Statements of Equity](index=11&type=section&id=Consolidated%20Statements%20of%20Equity%20--%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section details changes in the Company's consolidated stockholders' equity for the six months ended June 30, 2025 and 2024 Consolidated Statements of Equity (Unaudited) - Key Figures | Metric | December 31, 2024 ($ thousands) | March 31, 2025 ($ thousands) | June 30, 2025 ($ thousands) | | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $2,690,574 | $2,743,136 | $2,731,904 | | Net income (Q2 2025) | N/A | $81,965 | $13,780 | | Dividends declared on common stock (Q2 2025) | N/A | $(26,765) | $(26,770) | - Retained earnings decreased from **$1,363.6 million** at June 30, 2024, to **$1,071.9 million** at June 30, 2025, reflecting the impact of discontinued operations and dividend payments[32](index=32&type=chunk) [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20--%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section presents the Company's consolidated cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Statements of Cash Flows (Unaudited) - Key Figures | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $334,884 | $301,569 | | Net cash used in investing activities | $(174,417) | $(235,964) | | Net cash used in financing activities | $(168,570) | $(48,142) | | (Decrease) increase in cash, cash equivalents and restricted cash | $(8,103) | $17,463 | | Cash, cash equivalents and restricted cash - end of period | $58,801 | $94,438 | - Net cash provided by operating activities increased by **$33.3 million**, largely due to the collection of purchased gas cost balances at the natural gas distribution business[34](index=34&type=chunk)[190](index=190&type=chunk) - Net cash used in financing activities increased by **$120.4 million**, primarily due to lower issuance and higher repayment of long-term debt[34](index=34&type=chunk)[192](index=192&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, offering additional context and information [Note 1. Basis of presentation](index=13&type=section&id=1.%20Basis%20of%20presentation) Interim financial statements adhere to GAAP and Form 10-Q, with Everus results reclassified as discontinued operations after its October 2024 separation - Interim financial statements are unaudited and prepared in accordance with **GAAP** for interim financial information and **Form 10-Q** instructions[35](index=35&type=chunk) - The separation of Everus on **October 31, 2024**, was a tax-free spinoff, with its historical results presented as discontinued operations[36](index=36&type=chunk) - Certain transmission-related expenses for 2024 were reclassified from operation and maintenance to electric fuel and purchased power, with no effect on reported results or cash flows[38](index=38&type=chunk) [Note 2. New accounting standards](index=14&type=section&id=2.%20New%20accounting%20standards) The Company is evaluating the impact of new accounting standards, including ASU 2023-09, ASU 2024-01, and ASU 2024-03, on future financial reporting Recently Issued Accounting Standards Not Yet Adopted | Standard | Description | Effective Date | Impact on Financial Statements/Disclosures | | :--- | :--- | :--- | :--- | | ASU 2023-09 (Income Taxes) | Improves income tax disclosures, primarily related to rate reconciliation and income taxes paid. | Annual reporting periods beginning after 2024. | Currently evaluating impact on disclosures for year ended December 31, 2025. | | ASU 2024-01 (Stock Compensation) | Provides an example for applying scope to determine if profits interest and similar awards are stock compensation. | Fiscal years beginning after December 15, 2024. | Currently evaluating impact on disclosures for year ended December 31, 2025. | | ASU 2024-03 (Disaggregation of Income Statement Expenses) | Improves disclosures about a public business entity's expenses, providing more detail on types of expenses (e.g., purchases of inventory, employee compensation, depreciation). | Annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. | Currently evaluating impact on disclosures for year ended December 31, 2027. | [Note 3. Discontinued operations](index=14&type=section&id=3.%20Discontinued%20operations) The Company completed the Everus separation on October 31, 2024, with its historical results now presented as discontinued operations, net of tax - Everus separation completed on **October 31, 2024**, as a tax-free spinoff, with stockholders receiving one share of Everus for every four shares of Company common stock[41](index=41&type=chunk) - Historical results of Everus are presented as discontinued operations, net of tax, except for certain allocated general corporate overhead costs[42](index=42&type=chunk) Discontinued Operations, Net of Tax | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $— | $703,074 | $— | $1,328,624 | | Operating (loss) income | $(429) | $50,011 | $(1,028) | $89,302 | | Discontinued operations, net of tax | $(397) | $40,194 | $(899) | $66,357 | - Separation-related costs incurred were **$45 thousand** (3 months) and **$547 thousand** (6 months) net of tax for 2025, significantly lower than **$3.9 million** and **$7.4 million** in 2024[44](index=44&type=chunk) [Note 4. Seasonality of operations](index=17&type=section&id=4.%20Seasonality%20of%20operations) The Company's operations are highly seasonal, causing significant quarterly fluctuations in revenues and expenses, making interim results non-indicative of full-year performance - Company's operations are highly seasonal, causing significant fluctuations in quarterly revenues and expenses[46](index=46&type=chunk) - Interim results may not be indicative of full fiscal year performance due to seasonality[46](index=46&type=chunk) [Note 5. Receivables and allowance for expected credit losses](index=17&type=section&id=5.%20Receivables%20and%20allowance%20for%20expected%20credit%20losses) Receivables are mainly trade receivables, with the allowance for expected credit losses determined quarterly based on historical data and forecasts - Receivables are primarily trade receivables from goods and services, due within **12 months**[47](index=47&type=chunk) - Allowance for expected credit losses is determined quarterly using historical data, current conditions, and future forecasts[48](index=48&type=chunk) Allowance for Expected Credit Losses (in thousands) | Segment | At December 31, 2024 ($ thousands) | Current Expected Credit Loss Provision (6 months ended June 30, 2025) ($ thousands) | Less Write-offs (6 months ended June 30, 2025) ($ thousands) | Credit Loss Recoveries (6 months ended June 30, 2025) ($ thousands) | At June 30, 2025 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Electric | $473 | $1,117 | $1,369 | $240 | $461 | | Natural gas distribution | $1,366 | $2,062 | $2,271 | $417 | $1,574 | | Pipeline | $— | $— | $— | $— | $— | | Total | $1,839 | $3,179 | $3,640 | $657 | $2,035 | [Note 6. Inventories and natural gas in storage](index=18&type=section&id=6.%20Inventories%20and%20natural%20gas%20in%20storage) Natural gas in storage is valued at the lower of cost or market using LIFO, average cost, or FIFO, with current inventories totaling $19.713 million - Natural gas in storage is valued at lower of cost or market using LIFO, average cost, or FIFO methods[50](index=50&type=chunk) Inventories on Consolidated Balance Sheets (in thousands) | Inventory Type | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Natural gas in storage (current) | $14,937 | $16,363 | $40,073 | | Fuel stock | $4,776 | $4,799 | $4,867 | | Total | $19,713 | $21,162 | $44,940 | - Noncurrent natural gas in storage, representing gas for pressure levels, was **$48.5 million** at June 30, 2025[50](index=50&type=chunk) [Note 7. Earnings per share](index=18&type=section&id=7.%20Earnings%20per%20share) Basic EPS is net income divided by weighted average shares, diluted EPS includes equity awards, with continuing operations EPS consistent but total EPS down due to discontinued operations - Basic EPS is net income divided by weighted average common shares outstanding; diluted EPS includes dilutive equity awards[51](index=51&type=chunk) Earnings Per Share (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Basic EPS - Continuing Operations | $0.07 | $0.10 | $0.47 | $0.47 | | Basic EPS - Discontinued Operations | — | $0.20 | — | $0.32 | | Basic EPS - Total | $0.07 | $0.30 | $0.47 | $0.79 | | Diluted EPS - Continuing Operations | $0.07 | $0.10 | $0.47 | $0.47 | | Diluted EPS - Discontinued Operations | — | $0.20 | — | $0.32 | | Diluted EPS - Total | $0.07 | $0.30 | $0.47 | $0.79 | | Weighted average common shares outstanding - basic (thousands) | 204,331 | 203,888 | 204,237 | 203,834 | | Dividends declared per common share | $0.1300 | $0.1250 | $0.2600 | $0.2500 | [Note 8. Revenue from contracts with customers](index=19&type=section&id=8.%20Revenue%20from%20contracts%20with%20customers) Revenue is recognized upon performance obligation satisfaction, disaggregated by customer type, with total external operating revenues increasing to $1,026.019 million for the six months ended June 30, 2025 - Revenue is recognized when control over a product or service is transferred to a customer, based on contract consideration[52](index=52&type=chunk) Total External Operating Revenues by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Electric | $97,886 | $99,173 | $210,147 | $206,916 | | Natural gas distribution | $206,794 | $201,445 | $746,041 | $660,930 | | Pipeline | $46,507 | $43,851 | $69,831 | $64,883 | | Other | $(1) | $2 | $— | $17 | | Total External Operating Revenues | $351,186 | $344,471 | $1,026,019 | $932,746 | - Remaining performance obligations at June 30, 2025, totaled **$573.3 million**, with **$87.0 million** expected to be recognized within **12 months**[59](index=59&type=chunk) [Note 9. Regulatory assets and liabilities](index=21&type=section&id=9.%20Regulatory%20assets%20and%20liabilities) Regulatory assets and liabilities stem from regulated operations, deferring costs and revenues for future rate recovery or refund, resulting in a net regulatory liability of $(151.376) million - Regulatory assets and liabilities are recognized when costs or revenues are expected to be recovered from or refunded to customers in future rates[60](index=60&type=chunk) Regulatory Assets and Liabilities (in thousands) | Category | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Total regulatory assets | $451,046 | $569,156 | $537,786 | | Total regulatory liabilities | $602,422 | $619,901 | $596,337 | | Net regulatory position | $(151,376) | $(50,745) | $(58,551) | - Approximately **$177.2 million** of regulatory assets at June 30, 2025, were not earning a rate of return but are expected to be recovered from customers[62](index=62&type=chunk) - Environmental compliance costs and revenues from emission allowance sales are deferred as regulatory assets and liabilities, respectively, and passed through to customers[63](index=63&type=chunk) [Note 10. Environmental allowances and obligations](index=23&type=section&id=10.%20Environmental%20allowances%20and%20obligations) The natural gas distribution segment acquires environmental allowances for GHG compliance, recording them at weighted average cost, with related expenses and revenues deferred as regulatory assets and liabilities - Environmental allowances are acquired to comply with state GHG emission regulations and are recorded at weighted average cost[65](index=65&type=chunk) - Environmental compliance obligations are measured based on allowances held and estimated additional allowances needed[66](index=66&type=chunk) - Revenues from selling emissions allowances are deferred as regulatory liabilities, and associated expenses are deferred as regulatory assets[67](index=67&type=chunk)[68](index=68&type=chunk) [Note 11. Fair value measurements](index=23&type=section&id=11.%20Fair%20value%20measurements) The Company measures certain investments and available-for-sale securities at fair value, with long-term debt fair value disclosed as Level 2 - Investments in insurance contracts for nonqualified benefit plans are measured at fair value, totaling **$64.1 million** at June 30, 2025, with net unrealized gains recognized in Other income[70](index=70&type=chunk) Available-for-Sale Securities (in thousands) | Security Type | June 30, 2025 Fair Value ($ thousands) | June 30, 2024 Fair Value ($ thousands) | December 31, 2024 Fair Value ($ thousands) | | :--- | :--- | :--- | :--- | | Mortgage-backed securities | $8,167 | $7,612 | $7,554 | | U.S. Treasury securities | $3,467 | $3,860 | $4,024 | | Total | $11,634 | $11,472 | $11,578 | Fair Value Measurements at June 30, 2025 (in thousands) | Asset Type | Level 1 ($ thousands) | Level 2 ($ thousands) | Level 3 ($ thousands) | Total ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Money market funds | $— | $8,965 | $— | $8,965 | | Insurance contracts | $— | $64,141 | $— | $64,141 | | Available-for-sale securities | $— | $11,634 | $— | $11,634 | | Total assets measured at fair value | $— | $84,740 | $— | $84,740 | Long-Term Debt Fair Value (in thousands) | Metric | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Carrying amount | $2,181,935 | $2,268,617 | $2,292,610 | | Fair value | $1,886,060 | $1,955,677 | $1,963,396 | [Note 12. Debt](index=26&type=section&id=12.%20Debt) The Company and its subsidiaries complied with all debt covenants at June 30, 2025, with long-term debt decreasing to $2.182 billion due to repayments - Company and subsidiaries were in compliance with all debt covenants at **June 30, 2025**[80](index=80&type=chunk) Long-Term Debt Outstanding (in thousands) | Debt Type | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Senior Notes | $1,947,000 | $1,882,000 | $1,947,000 | | Credit agreements | $100,800 | $99,800 | $169,700 | | Term Loan Agreements | $61,600 | $124,300 | $65,600 | | Commercial paper | $43,300 | $133,700 | $81,400 | | Medium-Term Notes | $35,000 | $35,000 | $35,000 | | Other notes | $338 | $354 | $346 | | Less unamortized debt issuance costs | $(6,103) | $(6,537) | $(6,436) | | Total long-term debt | $2,181,935 | $2,268,617 | $2,292,610 | | Less current maturities | $(136,700) | $(61,608) | $(161,700) | | Net long-term debt | $2,045,235 | $2,207,009 | $2,130,910 | [Note 13. Cash flow information](index=27&type=section&id=13.%20Cash%20flow%20information) Cash interest expenditures decreased to $49.407 million, income taxes paid decreased to $6.225 million, and noncash investing activities included $38.644 million in property additions Cash Expenditures for Interest and Income Taxes (in thousands) | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Interest, net | $49,407 | $55,258 | | Income taxes paid, net | $6,225 | $7,170 | Noncash Investing and Financing Transactions (in thousands) | Metric | June 30, 2025 ($ thousands) | June 30, 2024 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Right-of-use assets obtained in exchange for new operating lease liabilities | $500 | $820 | $1,787 | | Property, plant and equipment additions in accounts payable | $38,644 | $45,981 | $36,820 | [Note 14. Business segment data](index=27&type=section&id=14.%20Business%20segment%20data) The Company operates three reportable segments—electric, natural gas distribution, and pipeline—with the CEO reviewing segment performance and resource allocation - Company's reportable segments are electric, natural gas distribution, and pipeline, based on internal reporting and CODM review[85](index=85&type=chunk)[86](index=86&type=chunk) - Electric segment generates, transmits, and distributes electricity in Montana, North Dakota, South Dakota, and Wyoming[87](index=87&type=chunk) - Natural gas distribution segment distributes natural gas in those states, as well as in Idaho, Minnesota, Oregon and Washington, and provides related value-added services[87](index=87&type=chunk) - Pipeline segment provides natural gas transportation and underground storage services primarily in the Rocky Mountain and northern Great Plains regions[88](index=88&type=chunk) - The 'Other' category includes Centennial Capital, captive insurance activities, and corporate overhead costs not meeting discontinued operations criteria[89](index=89&type=chunk) Net Income (Loss) by Segment (in thousands) | Segment | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Electric | $10,497 | $15,527 | $25,441 | $33,396 | | Natural gas distribution | $(7,356) | $(5,007) | $37,302 | $35,063 | | Pipeline | $15,417 | $17,259 | $32,627 | $32,317 | | Other | $(4,778) | $32,657 | $375 | $60,558 | | Consolidated Net Income (Loss) | $13,780 | $60,436 | $95,745 | $161,334 | [Note 15. Employee benefit plans](index=31&type=section&id=15.%20Employee%20benefit%20plans) The Company maintains qualified defined benefit pension and postretirement plans, with net periodic pension cost increasing to $1.703 million and a net credit for other postretirement plans Components of Net Periodic Benefit Cost for Pension Plans (in thousands) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Interest cost | $3,303 | $3,200 | $6,606 | $6,400 | | Expected return on assets | $(3,645) | $(4,028) | $(7,290) | $(8,056) | | Amortization of net actuarial loss | $1,194 | $1,037 | $2,387 | $2,074 | | Net periodic benefit cost | $852 | $209 | $1,703 | $418 | Components of Net Periodic Benefit Credit for Other Postretirement Plans (in thousands) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Net periodic benefit credit | $(1,118) | $(1,193) | $(2,237) | $(2,361) | - Net periodic benefit cost for nonqualified defined benefit plans was **$1.4 million** for the six months ended June 30, 2025[98](index=98&type=chunk) [Note 16. Regulatory matters](index=33&type=section&id=16.%20Regulatory%20matters) The Company actively manages regulatory matters, including rate adjustments and recurring mechanisms, with recent approvals and requests across various jurisdictions - Intermountain filed a request for a **$26.5 million** annual natural gas general rate increase (**8.6%**) with the IPUC on **May 30, 2025**[100](index=100&type=chunk) - Montana-Dakota filed an annual update to its transmission cost adjustment rider with the NDPSC, requesting to recover **$6.3 million**, an increase of **$7.2 million** over current rates[101](index=101&type=chunk) - MTPSC approved an interim natural gas rate increase of **$7.7 million** for Montana-Dakota, effective **February 1, 2025**, with a settlement agreement for an annual increase of **$7.3 million** pending[102](index=102&type=chunk) - WUTC approved multi-party settlement for Cascade's natural gas rate increases of **$29.8 million** (**7.9%**) effective **March 1, 2025**, and **$10.8 million** (**2.6%**) effective **March 1, 2026**[103](index=103&type=chunk) - WYPSC approved a settlement for Montana-Dakota's natural gas rate increase of **$2.1 million** (**11.7%**) effective **August 1, 2025**[104](index=104&type=chunk) - Montana-Dakota filed a request with the WYPSC for an electric general rate increase of **$7.5 million** (**24.4%**) on **June 30, 2025**[105](index=105&type=chunk) [Note 17. Commitments and contingencies](index=34&type=section&id=17.%20Commitments%20and%20contingencies) The Company accrues for probable and estimable losses from claims and lawsuits, with total accrued liabilities of $25.0 million and purchase commitments of $987.6 million - Accrued liabilities for contingencies (litigation, regulatory, environmental) totaled **$25.0 million** at June 30, 2025, with related regulatory assets of **$22.3 million**[107](index=107&type=chunk) Purchase Commitments (in thousands) | Period | 2026 ($ thousands) | 2027 ($ thousands) | 2028 ($ thousands) | 2029 ($ thousands) | 2030 ($ thousands) | Thereafter ($ thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Purchase Commitments | $987,600 | $269,400 | $178,000 | $138,200 | $112,600 | $654,800 | - Purchase commitments decreased from the 2024 Annual Report due to an anticipated decrease in electric supply contracts from the Badger Wind, LLC purchase and sale agreement[109](index=109&type=chunk) - The Company has outstanding letters of credit aggregating **$3.2 million** and surety bonds of **$11.4 million** at June 30, 2025[111](index=111&type=chunk)[112](index=112&type=chunk) - The Company is not the primary beneficiary of Coyote Creek, a VIE, despite a coal supply agreement, due to shared authority among four unrelated owners[116](index=116&type=chunk) - The Company's exposure to loss from its involvement with Coyote Creek (VIE) was **$24.5 million** at June 30, 2025[117](index=117&type=chunk) [Note 18. Subsequent events](index=36&type=section&id=18.%20Subsequent%20events) Post-June 30, 2025, the One Big Beautiful Bill Act was enacted with no material impact expected, and Intermountain issued $25.0 million in senior notes - The One Big Beautiful Bill Act was enacted on **July 4, 2025**, extending tax provisions but scaling back clean energy incentives; no material impact expected[118](index=118&type=chunk) - Intermountain entered a note purchase agreement on **July 15, 2025**, to issue **$50.0 million** of senior notes (**6.39%** interest, due **July 15, 2055**), with **$25.0 million** issued immediately[119](index=119&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Company's financial condition and results, focusing on its transition to a pure-play regulated energy delivery business post-Everus separation - Company's strategy focuses on being a pure-play regulated energy delivery company, pursuing organic growth opportunities[120](index=120&type=chunk) - Completed the separation of Everus on **October 31, 2024**, as a tax-free spinoff, with most separation costs already incurred[121](index=121&type=chunk)[122](index=122&type=chunk) - Board established a long-term dividend payout ratio target of **60% to 70%** of regulated energy delivery earnings[123](index=123&type=chunk) - Company manages inflationary pressures, higher interest rates, commodity price volatility, and supply chain disruptions[124](index=124&type=chunk) [Consolidated Earnings Overview](index=38&type=section&id=Consolidated%20Earnings%20Overview) This section provides a summary of the Company's consolidated financial performance, highlighting key earnings metrics and drivers Consolidated Earnings Overview (in millions, except per share amounts) | Segment/Metric | Three Months Ended June 30, 2025 ($ millions) | Three Months Ended June 30, 2024 ($ millions) | Six Months Ended June 30, 2025 ($ millions) | Six Months Ended June 30, 2024 ($ millions) | | :--- | :--- | :--- | :--- | :--- | | Electric | $10.4 | $15.5 | $25.4 | $33.4 | | Natural gas distribution | $(7.4) | $(5.0) | $37.3 | $35.0 | | Pipeline | $15.4 | $17.3 | $32.6 | $32.3 | | Other | $(4.3) | $(7.6) | $1.3 | $(5.7) | | Income from continuing operations | $14.1 | $20.2 | $96.6 | $95.0 | | Discontinued operations, net of tax | $(0.4) | $40.2 | $(0.9) | $66.3 | | Net income | $13.7 | $60.4 | $95.7 | $161.3 | | Basic EPS - Total | $0.07 | $0.30 | $0.47 | $0.79 | - Consolidated earnings decreased by **$46.7 million** (3 months) and **$65.6 million** (6 months) primarily due to the absence of income from discontinued operations in 2025[130](index=130&type=chunk)[131](index=131&type=chunk) - Electric business earnings decrease was largely the result of higher operation and maintenance expense, primarily due to increased payroll-related costs, higher contract services related to electric generation station planned outage-related costs, as well as increased software, which includes certain costs associated with TSA services provided, and insurance expenses[130](index=130&type=chunk) - Natural gas distribution business reported an increased seasonal loss, largely the result of higher operation and maintenance expense, primarily due to higher payroll-related costs and increased software expenses, which includes certain costs associated with TSA services provided. Lower volumes due to warmer weather further drove the loss[130](index=130&type=chunk) - Pipeline earnings decrease was driven by higher operations and maintenance expense, primarily attributable to payroll-related costs. The absence of proceeds received in 2024 from a customer settlement further drove the decrease[130](index=130&type=chunk) [Business Segment Financial and Operating Data](index=39&type=section&id=Business%20Segment%20Financial%20and%20Operating%20Data) This section provides detailed financial and operating performance data for each of the Company's business segments [Electric and Natural Gas Distribution](index=40&type=section&id=Electric%20and%20Natural%20Gas%20Distribution) Both segments strive for top utility performance, facing regulatory, cybersecurity, and clean energy transition challenges while investing in infrastructure and seeking rate adjustments - Segments are focused on cultivating organic growth, managing operating costs, and expanding customer base through system extensions and upgrades[137](index=137&type=chunk) - Subject to extensive regulation regarding costs, investment recovery, and permitted returns, with tracking mechanisms implemented to reduce regulatory lag[138](index=138&type=chunk) - Electric earnings decreased by **$5.1 million** (3 months) and **$8.0 million** (6 months) due to higher O&M, partially offset by rate relief and increased commercial sales[147](index=147&type=chunk)[148](index=148&type=chunk) - Natural gas distribution reported an increased seasonal loss of **$2.4 million** (3 months) but earnings increased by **$2.3 million** (6 months) due to rate relief, colder weather, and higher transportation revenue, offset by higher O&M[152](index=152&type=chunk) - Utility business expects rate base growth of **7% to 8%** annually over the next **five years** and retail customer growth of **1% to 2%** per year[154](index=154&type=chunk) - Montana-Dakota entered an agreement to purchase a **49%** ownership interest in a **250 MW** wind project for **$294.0 million**, contingent on regulatory approval[158](index=158&type=chunk) - An electric service agreement to serve an additional **350 MW** data center load with Applied Digital was approved by the NDPSC, with **100 MW** expected online in **Q4 2025**[159](index=159&type=chunk) - EPA proposed rules in **June 2025** to repeal and replace 2024 GHG emission standards and Mercury and Air Toxics Standard Rule, potentially reducing compliance costs[162](index=162&type=chunk)[163](index=163&type=chunk) [Pipeline](index=48&type=section&id=Pipeline) The pipeline segment focuses on natural gas transportation and storage, pursuing organic growth and system optimization despite price volatility and regulatory challenges - Segment focuses on increasing market share and profitability through optimization of existing operations, organic growth, and investments in energy-related assets[166](index=166&type=chunk) - Completed several growth projects in **2024**, including Line Section 27 Expansion (**175 MMcf/day** capacity increase), Line Section 28 Expansion (**137 MMcf/day** capacity increase), and Wahpeton Expansion Project (**20 MMcf/day** capacity increase)[170](index=170&type=chunk) - Pipeline earnings decreased by **$1.9 million** (3 months) due to higher O&M and absence of 2024 customer settlement, partially offset by increased demand revenue from growth projects[173](index=173&type=chunk) - Pipeline earnings increased by **$0.3 million** (6 months) due to growth projects and short-term transportation contracts, offset by higher O&M and absence of 2024 customer settlement[175](index=175&type=chunk)[180](index=180&type=chunk) - Bakken natural gas production is at or near record levels, providing organic growth opportunities and increased transportation demand[175](index=175&type=chunk) - Began construction in **May 2025** on the Minot Expansion Project, adding **7 MMcf/day** natural gas transportation capacity, expected in service **Q4 2025**[179](index=179&type=chunk) - Evaluating potential Bakken East Pipeline project (**350 miles**, **190 MMcf/day** capacity) and a smaller Baker Storage Field Enhancement project[185](index=185&type=chunk) [Other](index=51&type=section&id=Other) The "Other" category reported decreased net income due to the absence of discontinued operations and income tax adjustments, partially offset by lower O&M expenses Other Segment Net Income (Loss) (in millions) | Metric | Three Months Ended June 30, 2025 ($ millions) | Three Months Ended June 30, 2024 ($ millions) | Six Months Ended June 30, 2025 ($ millions) | Six Months Ended June 30, 2024 ($ millions) | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(4.7) | $32.6 | $0.4 | $60.6 | - Decreased net income primarily due to absence of income from discontinued operations in 2025 and income tax adjustments[183](index=183&type=chunk) - Partially offset by lower operation and maintenance expenses, primarily a result of corporate overhead costs classified as continuing operations allocated to Everus in 2024, which are not included in Other in 2025[183](index=183&type=chunk) [Intersegment Transactions](index=52&type=section&id=Intersegment%20Transactions) This section reconciles segment operating revenues to consolidated revenues by detailing intersegment eliminations, totaling $44.0 million for the six months ended June 30, 2025 Intersegment Transactions (in millions) | Metric | Three Months Ended June 30, 2025 ($ millions) | Three Months Ended June 30, 2024 ($ millions) | Six Months Ended June 30, 2025 ($ millions) | Six Months Ended June 30, 2024 ($ millions) | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $10.2 | $9.1 | $44.0 | $39.5 | | Purchased natural gas sold | $9.8 | $8.8 | $43.1 | $39.1 | | Operation and maintenance | $0.4 | $0.3 | $0.9 | $0.4 | | Other income | $1.2 | $4.4 | $2.3 | $8.9 | | Interest expense | $1.2 | $4.4 | $2.3 | $8.9 | - Intersegment eliminations are applied to reconcile segment operating revenues to consolidated operating revenues[186](index=186&type=chunk) [Liquidity and Capital Commitments](index=52&type=section&id=Liquidity%20and%20Capital%20Commitments) This section discusses the Company's cash flows, capital expenditures, and financing strategies, outlining its liquidity and future capital needs [Cash flows](index=52&type=section&id=Cash%20flows) Operating cash flows increased by $33.3 million, investing cash used decreased by $61.6 million, and financing cash used increased by $120.4 million Net Cash Flows (in millions) | Activity | Six Months Ended June 30, 2025 ($ millions) | Six Months Ended June 30, 2024 ($ millions) | Variance ($ millions) | | :--- | :--- | :--- | :--- | | Operating activities | $334.9 | $301.6 | $33.3 | | Investing activities | $(174.4) | $(236.0) | $61.6 | | Financing activities | $(168.6) | $(48.2) | $(120.4) | | (Decrease) increase in cash, cash equivalents and restricted cash | $(8.1) | $17.4 | $(25.5) | - Increase in operating cash flows driven by collection of purchased gas cost balances at natural gas distribution business[190](index=190&type=chunk) - Decrease in investing cash used due to lower capital expenditures and absence of discontinued operations[191](index=191&type=chunk) - Increase in financing cash used due to lower issuance and higher repayment of long-term debt[192](index=192&type=chunk) [Capital expenditures](index=54&type=section&id=Capital%20expenditures) Capital expenditures for the first six months of 2025 were $179.4 million, with estimated full-year expenditures of $539.0 million focused on utility and pipeline growth - Capital expenditures for the first six months of 2025 were **$179.4 million**, compared to **$231.3 million** in 2024[193](index=193&type=chunk) - Estimated capital expenditures for 2025 are approximately **$539.0 million**, comparable to the 2024 Annual Report[193](index=193&type=chunk) - Planned investments include electric transmission, natural gas delivery, power generation, and modernization of utility infrastructure, as well as pipeline system growth[194](index=194&type=chunk) [Capital resources](index=55&type=section&id=Capital%20resources) The Company's capital resources include credit facilities, debt, and equity, maintaining investment-grade credit ratings and 56% equity as a percent of total capitalization - Primary cash sources are revolving credit facilities, the issuance of long-term debt and the sale of equity securities[196](index=196&type=chunk) - Company and subsidiaries had investment grade credit ratings and were in compliance with all debt covenants at **June 30, 2025**[197](index=197&type=chunk) Outstanding Revolving Credit Facilities at June 30, 2025 (in millions) | Company | Facility Limit ($ millions) | Amount Outstanding ($ millions) | Letters of Credit ($ millions) | Expiration Date | | :--- | :--- | :--- | :--- | :--- | | Montana-Dakota Utilities Co. | $200.0 | $43.3 | $— | 10/18/28 | | Cascade Natural Gas Corporation | $175.0 | $14.0 | $2.2 | 6/20/29 | | Intermountain Gas Company | $175.0 | $86.8 | $— | 6/20/29 | | MDU Resources Group, Inc. | $200.0 | $— | $1.0 | 5/31/28 | - Total equity as a percent of total capitalization was **56%** at June 30, 2025, indicating financial strength[201](index=201&type=chunk) - Intermountain entered an agreement to issue **$50.0 million** in senior notes (**6.39%**, due 2055), with **$25.0 million** issued on **July 15, 2025**[202](index=202&type=chunk) [Material cash requirements](index=55&type=section&id=Material%20cash%20requirements) The Company's material cash requirements encompass short-term and long-term obligations for debt, interest, operating leases, purchase commitments, and asset retirement - Short-term cash requirements include debt repayment, interest, operating leases, purchase commitments, and asset retirement obligations[204](index=204&type=chunk) - Long-term cash requirements are similar, covering outstanding borrowings, interest, operating leases, purchase commitments, and asset retirement obligations[205](index=205&type=chunk) - No material changes in contractual obligations for 2025, except for decreases in purchase commitments due to anticipated electric supply contract reductions[203](index=203&type=chunk) [Defined benefit pension plans](index=56&type=section&id=Defined%20benefit%20pension%20plans) The Company maintains noncontributory qualified defined benefit pension plans, with an expected $3.4 million contribution in 2025 to decrease costs - Company has noncontributory qualified defined benefit pension plans[206](index=206&type=chunk) - Expects to contribute approximately **$3.4 million** to pension plans in 2025, accelerated to decrease costs[207](index=207&type=chunk) [New Accounting Standards](index=56&type=section&id=New%20Accounting%20Standards) Refer to Note 2 of the Notes to Consolidated Financial Statements for information on new accounting standards - Refer to Note 2 for information on new accounting standards[208](index=208&type=chunk) [Critical Accounting Estimates](index=56&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include goodwill impairment, regulatory asset recovery, pension/postretirement costs, and income taxes, with construction contract revenue no longer critical post-Everus separation - Critical accounting estimates include goodwill impairment, regulatory asset recovery, pension/postretirement benefit costs, and income taxes[209](index=209&type=chunk) - Construction contract revenue recognition is no longer a critical accounting estimate after the Everus separation[209](index=209&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the Company's market risks compared to those reported in the 2024 Annual Report - No material changes in market risks from the 2024 Annual Report[210](index=210&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of **June 30, 2025**[211](index=211&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended **June 30, 2025**[212](index=212&type=chunk) [Part II -- Other Information](index=57&type=section&id=Part%20II%20--%20Other%20Information) This section covers legal proceedings, risk factors, equity security sales, and other miscellaneous information relevant to the Company [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) No material changes occurred in the Company's legal proceedings compared to those reported in the 2024 Annual Report - No material changes to legal proceedings from the 2024 Annual Report[214](index=214&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) The Company reiterates 2024 Annual Report risk factors, emphasizing potential negative impacts from tariffs and trade policy changes on costs and operations - Refers to risk factors in the 2024 Annual Report for potential material harm to business[215](index=215&type=chunk) - Tariffs and changes in trade policy could increase raw material costs, cause supply chain disruptions, and delay capital projects[216](index=216&type=chunk) - Inability to recover increased costs through rates could adversely affect financial condition and results of operations[216](index=216&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company purchased 1,833 common shares for non-employee directors electing stock in lieu of cash retainers, with no publicly announced repurchase plans Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | | :--- | :--- | :--- | :--- | :--- | | April 1 through April 30, 2025 | — | $— | — | — | | May 1 through May 31, 2025 | — | $— | — | — | | June 1 through June 30, 2025 | 1,833 | $16.58 | — | — | | Total | 1,833 | $16.58 | — | — | - Shares purchased for non-employee directors electing stock in lieu of cash retainer[218](index=218&type=chunk) - Company does not have publicly announced plans to repurchase equity securities[219](index=219&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during Q2 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements adopted or terminated by directors or officers during **Q2 2025**[220](index=220&type=chunk) [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section refers to the Exhibits Index, listing documents incorporated by reference or filed, including certifications and XBRL documents - See the Exhibits Index for a list of documents incorporated by reference or filed herewith[221](index=221&type=chunk) [Exhibits Index](index=58&type=section&id=Exhibits%20Index) This section provides a comprehensive list of all exhibits accompanying the report, including corporate documents and certifications - Includes Amended and Restated Certificate of Incorporation, Bylaws, and Long-Term Performance-Based Incentive Plan[223](index=223&type=chunk) - Contains certifications of Chief Executive Officer and Chief Financial Officer pursuant to Sarbanes-Oxley Act[223](index=223&type=chunk) - XBRL Instance Document and Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents are included[223](index=223&type=chunk) [Signatures](index=59&type=section&id=Signatures) This section contains the official signatures of the Company's authorized officers, certifying the accuracy of the report - Report signed by Jason L. Vollmer (CFO) and Stephanie A. Sievert (Chief Accounting and Regulatory Affairs Officer) on **August 7, 2025**[227](index=227&type=chunk)

Executive Summary & Financial Highlights [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) MDU Resources' net income and diluted EPS significantly declined in Q2 2025 due to weather, operational cost challenges, and the Everus spinoff, yet the company maintained pipeline business growth and regulatory progress supporting its pure-play regulated energy delivery value proposition Consolidated Financial Results for Q2 2025 (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------------------- | :------ | :------ | :----- | | Net Income | $13.7M | $60.4M | -77.3% | | Diluted EPS | $0.07 | $0.30 | -76.7% | | Income from Continuing Operations | $14.1M | $20.2M | -30.2% | | Diluted EPS from Continuing Operations | $0.07 | $0.10 | -30.0% | Consolidated Financial Results for Six Months Ended June 30 (YoY) | Metric | Six Months 2025 | Six Months 2024 | Change | | :--------------------------------- | :------ | :------ | :----- | | Net Income | $95.7M | $161.3M | -40.7% | | Diluted EPS | $0.47 | $0.79 | -40.5% | | Income from Continuing Operations | $96.6M | $95.0M | +1.7% | | Diluted EPS from Continuing Operations | $0.47 | $0.47 | 0.0% | - On October 31, 2024, MDU Resources successfully completed the spinoff of Everus, which became an independent public company. Prior period results have been restated to reflect this spinoff, with Everus' historical operating results and related costs reported as discontinued operations[3](index=3&type=chunk) - Second quarter results were challenged by weather conditions and increased operations and maintenance expenses[3](index=3&type=chunk) [Full-Year 2025 Guidance Update](index=1&type=section&id=Full-Year%202025%20Guidance%20Update) The company narrowed its full-year 2025 EPS guidance to $0.88-$0.95 based on mid-year performance and weather impacts, while maintaining its long-term EPS growth rate guidance of 6%-8% 2025 Earnings Per Share Guidance | Metric | Updated Guidance | | :---------- | :--------- | | Diluted EPS | $0.88 - $0.95 | - Long-term EPS guidance remains unchanged, projecting a growth rate of **6%-8%**[4](index=4&type=chunk) - Guidance is based on assumptions including normal weather, economic, and operating conditions; continued utility customer growth of **1%-2%** annually; no equity issuances in 2025; and successful execution of approved capital investments and rate recovery plans[11](index=11&type=chunk) Segment Performance Analysis [Electric Utility Segment](index=2&type=section&id=Electric%20Utility%20Segment) The Electric Utility Segment's Q2 2025 net income decreased by 32.9% to $10.4 million, primarily due to increased O&M expenses, partially offset by South Dakota rate adjustments and data center-driven commercial retail sales growth [Financial Performance](index=8&type=section&id=Electric%20Utility%20Segment%20Financial%20Performance) The segment's Q2 2025 net income was $10.4 million, down from $15.5 million in 2024, with operating revenues slightly decreasing by 1.1% to $98.1 million and total operating expenses increasing by 7.8% to $86.9 million, driven by a 29.4% rise in O&M costs Electric Utility Segment Net Income | Period | 2025 | 2024 | Change | | :----- | :----- | :----- | :------- | | Q2 | $10.4M | $15.5M | (32.9)% | | Six Months | $25.4M | $33.4M | (24.0)% | Key Financial Metrics (Q2 2025 YoY Change) | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :------- | | Operating Revenues | $98.1M | $99.2M | (1.1)% | | Operations and Maintenance | $29.9M | $23.1M | 29.4% | | Operating Income | $11.2M | $18.6M | (39.8)% | - Key drivers for the net income decrease include a **$1.9 million** (after-tax) increase in payroll-related costs, a **$1.6 million** (after-tax) increase in contract services costs related to the Coyote Station planned outage, and a **$1.4 million** (after-tax) increase in software expenses[24](index=24&type=chunk) - Partially offsetting the decrease were rate adjustments in South Dakota and increased commercial retail sales volumes, primarily driven by data center demand near Ellendale, North Dakota[24](index=24&type=chunk) [Regulatory and Operational Updates](index=2&type=section&id=Electric%20Utility%20Segment%20Regulatory%20and%20Operational%20Updates) The segment saw a 12.0% retail sales volume growth, driven by data center demand and sustained customer growth, with regulatory activities including a North Dakota filing for 49% ownership of the Badger Wind Project, a Wyoming general rate case seeking a $7.5 million annual increase, and a planned Montana electric general rate case later this year - Retail sales volumes increased by **12.0%**, primarily driven by data center demand[7](index=7&type=chunk) - Combined target growth rate for electric utility and natural gas distribution customer base is **1.4%** (YoY)[4](index=4&type=chunk) - North Dakota: Filed for pre-approval and a Certificate of Public Convenience and Necessity for a 49% ownership interest in the Badger Wind Project, with a hearing scheduled for September 9, 2025 - Wyoming: Filed a general rate case requesting an annual increase of **$7.5 million**, expected to be effective May 1, 2026 - Montana: Plans to file an electric general rate case later this year [Natural Gas Distribution Segment](index=2&type=section&id=Natural%20Gas%20Distribution%20Segment) The Natural Gas Distribution Segment reported a seasonal loss of $7.4 million in Q2 2025, up from a $5.0 million loss in 2024, mainly due to increased O&M expenses and lower sales volumes from warmer weather, partially offset by rate adjustments in Washington and Montana and increased transportation revenues [Financial Performance](index=10&type=section&id=Natural%20Gas%20Distribution%20Segment%20Financial%20Performance) The segment's Q2 2025 net loss increased to $7.4 million from $5.0 million in 2024, with operating revenues growing 2.7% to $206.9 million, but total operating expenses rising 4.7% to $209.8 million, including a 10.0% increase in O&M costs Natural Gas Distribution Segment Net Income (Loss) | Period | 2025 | 2024 | Change | | :----- | :----- | :----- | :------- | | Q2 | $(7.4)M | $(5.0)M | 48.0% | | Six Months | $37.3M | $35.0M | 6.6% | Key Financial Metrics (Q2 2025 YoY Change) | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :------- | | Operating Revenues | $206.9M | $201.5M | 2.7% | | Operations and Maintenance | $60.5M | $55.0M | 10.0% | | Operating Income (Loss) | $(2.9)M | $1.2M | (341.7)% | - Key drivers for the increased seasonal loss include a **$2.1 million** (after-tax) increase in payroll-related costs, a **$0.9 million** (after-tax) increase in software expenses, and lower sales volumes due to warmer weather, particularly in Idaho[6](index=6&type=chunk)[27](index=27&type=chunk) - Partially offsetting the loss were increased retail sales revenues from rate adjustments in Washington and Montana, and growth in transportation revenues[6](index=6&type=chunk)[27](index=27&type=chunk) [Regulatory and Operational Updates](index=2&type=section&id=Natural%20Gas%20Distribution%20Segment%20Regulatory%20and%20Operational%20Updates) The segment experienced decreased sales volumes due to warmer temperatures, yet natural gas retail customer count grew 1.5% YoY, with regulatory updates including a general rate case filing in Idaho and a settlement agreement in Montana - Sales volumes decreased due to warmer temperatures[8](index=8&type=chunk) - Natural gas retail customer count increased by **1.5%** YoY[8](index=8&type=chunk) - Rate adjustments in Washington and Montana partially offset the seasonal loss[8](index=8&type=chunk) - Idaho: Filed a general rate case requesting an annual increase of **$26.5 million**, with a requested effective date of January 1, 2026 - Montana: Filed a settlement agreement for an annual increase of **$7.3 million**, pending approval by the Montana Public Service Commission; interim rates became effective February 1, 2025 - Washington: Filed a rate revision on April 30, 2025, related to projects not yet in service, resulting in a **$3.7 million** revenue reduction effective June 1, 2025 - Wyoming: Reached a settlement agreement for an annual increase of **$2.1 million**, pending formal approval [Pipeline Segment](index=3&type=section&id=Pipeline%20Segment) The Pipeline Segment's Q2 2025 net income decreased by 11.0% to $15.4 million, primarily due to increased O&M expenses, the absence of 2024 customer settlements, and higher depreciation, partially offset by increased transportation revenues from growth projects and strong demand for short-term capacity [Financial Performance](index=12&type=section&id=Pipeline%20Segment%20Financial%20Performance) The segment's Q2 2025 net income was $15.4 million, down from $17.3 million in 2024, with operating revenues increasing 6.4% to $56.3 million, but total operating expenses rising 14.5% to $33.9 million, including a 16.1% increase in O&M costs Pipeline Segment Net Income | Period | 2025 | 2024 | Change | | :----- | :----- | :----- | :------- | | Q2 | $15.4M | $17.3M | (11.0)% | | Six Months | $32.6M | $32.3M | 0.9% | Key Financial Metrics (Q2 2025 YoY Change) | Metric | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :------- | | Operating Revenues | $56.3M | $52.9M | 6.4% | | Operations and Maintenance | $22.4M | $19.3M | 16.1% | | Operating Income | $22.4M | $23.3M | (3.9)% | - Key drivers for the earnings decrease include a **$0.653 million** (after-tax) increase in payroll-related costs, the absence of a **$1.5 million** (after-tax) customer settlement in Q2 2024, and increased depreciation expenses and property tax accruals in certain jurisdictions due to growth projects placed in service[10](index=10&type=chunk)[28](index=28&type=chunk) - Partially offsetting the decrease were increased transportation revenues from growth projects, including the Wahpeton expansion, and strong customer demand for short-term natural gas transportation contracts[10](index=10&type=chunk)[28](index=28&type=chunk) [Strategic Project Updates](index=3&type=section&id=Pipeline%20Segment%20Strategic%20Project%20Updates) The Pipeline Segment is advancing several strategic projects, including the Minot expansion (commenced May 2025, expected in-service Q4), Bakken East (negotiations ongoing), and Baker storage and transportation expansion (evaluating smaller-scale project based on open season feedback) - Minot Expansion Project: Construction began in May 2025, adding approximately **7 million cubic feet per day** of natural gas transportation capacity, with an expected in-service date in Q4 this year[11](index=11&type=chunk) - Bakken East Project: The company is negotiating with relevant parties for a proposed approximately **350-mile** pipeline, focusing on project timing and volumes to determine feasibility, and actively engaging with landowners for environmental and civil surveys[11](index=11&type=chunk) - Baker Storage and Transportation Expansion Project: The binding open season for this proposed project concluded in May 2025, with the company reviewing results and evaluating a smaller project to align with customer interest based on initial feedback[11](index=11&type=chunk) - The company continues to advance other growth projects in various stages of development[11](index=11&type=chunk) [Other Segment (Impact of Everus Spinoff)](index=13&type=section&id=Other%20Segment%20%28Impact%20of%20Everus%20Spinoff%29) The 'Other' segment reported a net loss of $4.7 million in Q2 2025, a significant decline from $32.6 million net income in Q2 2024, primarily due to the absence of discontinued operations income (Everus spinoff) and income tax adjustments, partially offset by lower O&M expenses from reclassified corporate overhead Other Segment Net Income (Loss) | Period | 2025 | 2024 | Change | | :----- | :----- | :----- | :------- | | Q2 | $(4.7)M | $32.6M | (114.4)% | | Six Months | $0.4M | $60.6M | (99.3)% | - The primary reasons for the earnings decrease are the absence of discontinued operations income in 2025 and income tax adjustments related to the company's annual estimated tax rate[31](index=31&type=chunk) - Partially offsetting the decrease were lower operations and maintenance expenses, primarily because corporate overhead allocated to Everus in 2024 was not included in the 'Other' segment in 2025[31](index=31&type=chunk) - The 'Other' segment also includes insurance activities from the company's captive insurance company, along with general and administrative expenses and interest expense previously allocated to the exploration and production and refining businesses that did not meet discontinued operations criteria[32](index=32&type=chunk) Consolidated Financial Statements [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) In Q2 2025, MDU Resources' consolidated operating revenues slightly increased to $351.2 million from $344.5 million in Q2 2024, but net income significantly decreased to $13.7 million from $60.4 million, primarily due to the absence of discontinued operations income after the Everus spinoff, with income from continuing operations also declining Consolidated Statements of Income (Q2 2025 YoY) | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------ | :------ | | Operating Revenues | $351.2M | $344.5M | | Total Operating Expenses | $320.8M | $305.0M | | Operating Income | $30.4M | $39.5M | | Income from Continuing Operations | $14.1M | $20.2M | | Discontinued Operations (after-tax) | $(0.4)M | $40.2M | | Net Income | $13.7M | $60.4M | | Diluted EPS | $0.07 | $0.30 | - Operating revenues increased by **$6.7 million**, while operations and maintenance expenses increased by **$12.8 million**. Net income decreased by **$46.7 million**, primarily due to the impact of discontinued operations[18](index=18&type=chunk) [Selected Cash Flows Information](index=7&type=section&id=Selected%20Cash%20Flows%20Information) For the six months ended June 30, 2025, net cash provided by operating activities increased to $334.9 million from $301.6 million in 2024, while net cash used in investing activities decreased and net cash used in financing activities significantly increased Selected Cash Flows (Six Months Ended June 30) | Metric | Six Months 2025 | Six Months 2024 | | :-------------------------------------- | :------ | :------ | | Net Cash Provided by Operating Activities | $334.9M | $301.6M | | Net Cash Used in Investing Activities | $(174.4)M | $(236.0)M | | Net Cash Used in Financing Activities | $(168.6)M | $(48.2)M | | (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash | $(8.1)M | $17.4M | | Cash, Cash Equivalents, and Restricted Cash - End of Period | $58.8M | $94.4M | [Capital Expenditures](index=7&type=section&id=Capital%20Expenditures) MDU Resources projects total capital expenditures of $539 million for 2025, with a five-year total from 2025-2029 estimated at $3.067 billion, primarily allocated to the Natural Gas Distribution and Electric segments Capital Expenditure Forecast (2025-2029) | Business Line | 2025 Estimate | 2026 Estimate | 2027 Estimate | 2025-2029 Total Estimate | | :-------------------- | :------------- | :------------- | :------------- | :------------------------ | | Electric | $157M | $494M | $205M | $1,181M | | Natural Gas Distribution | $312M | $258M | $293M | $1,412M | | Pipeline | $70M | $59M | $95M | $474M | | **Total Capital Expenditures** | **$539M** | **$811M** | **$593M** | **$3,067M** | - The capital plan is subject to ongoing company review and modification, with actual expenditures potentially differing from estimates due to changes in load growth, regulatory decisions, and other factors[21](index=21&type=chunk) [Other Financial Data](index=14&type=section&id=Other%20Financial%20Data) As of June 30, 2025, MDU Resources reported a book value per share of common stock of $13.37, total assets of $6.946 billion, total equity of $2.732 billion, total debt of $2.182 billion, and capitalization ratios of 55.6% equity and 44.4% debt Key Financial Metrics (As of June 30, 2025) | Metric | Amount | | :-------------------------- | :------- | | Book Value Per Share of Common Stock | $13.37 | | Market Price Per Share of Common Stock | $16.67 | | Total Assets | $6,946M | | Total Equity | $2,732M | | Total Debt | $2,182M | Capitalization Ratios | Component | Ratio | | :---------- | :---- | | Total Equity | 55.6% | | Total Debt | 44.4% | Additional Information [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) MDU Resources management will host a webcast today at 2 p.m. ET to discuss second-quarter results, accessible via the company's investor relations website - The webcast can be found on www.mdu.com under the 'Investors' tab, then 'Events & Presentations,' by clicking on 'Second Quarter 2025 Earnings Conference Call.' A replay will be available at the same location following the webcast[12](index=12&type=chunk) [About MDU Resources Group, Inc.](index=4&type=section&id=About%20MDU%20Resources%20Group%2C%20Inc.) MDU Resources Group Inc., an S&P SmallCap 600 member, provides safe, reliable, affordable, and environmentally sound electric utility and natural gas distribution services to over 1.2 million customers across the Pacific Northwest and Midwest, operating a natural gas pipeline network and storage system exceeding 3,800 miles - The company provides electric utility and natural gas distribution services and operates a natural gas pipeline network[13](index=13&type=chunk) - Serving over **1.2 million customers**, the company operates a natural gas pipeline network and storage system exceeding **3,800 miles**[13](index=13&type=chunk) - The company is committed to delivering safe, reliable, affordable, and environmentally sound energy services[13](index=13&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements based on underlying assumptions, subject to unforeseen risks and uncertainties beyond the company's control, and readers are cautioned not to place undue reliance on these statements, with no obligation for the company to update them - Forward-looking statements include those regarding growth estimates, financial guidance, strategies, and other future activities, identified by words such as 'anticipates,' 'estimates,' 'expects,' 'intends,' 'plans,' and 'projects'[15](index=15&type=chunk) - These statements are based on the company's expectations and judgments and are subject to risks and uncertainties detailed in the company's filings with the U.S. Securities and Exchange Commission, such as its annual report on Form 10-K[16](index=16&type=chunk) - Except as required by applicable law, the company undertakes no obligation to update forward-looking statements due to new information, future events, or otherwise[16](index=16&type=chunk)

Core Viewpoint - MDU Resources Group, Inc. reported second quarter financial results for 2025, highlighting sustained momentum in the pipeline segment and regulatory progress that supports the company's long-term value as a regulated energy delivery business [1][2]. Financial Performance - For the second quarter of 2025, net income was $13.7 million, a decrease from $60.4 million in the same period of 2024. Earnings per share (EPS) diluted were $0.07 compared to $0.30 in 2024 [2][21]. - Income from continuing operations was $14.1 million, down from $20.2 million year-over-year, with diluted EPS from continuing operations at $0.10, up from $0.07 [2][21]. - Operating revenues for the second quarter of 2025 were $351.2 million, compared to $344.5 million in 2024, while operating expenses increased to $320.8 million from $305.0 million [13][21]. Segment Performance Electric Utility Segment - The electric utility segment earned $10.4 million in Q2 2025, down from $15.5 million in Q2 2024, primarily due to increased operation and maintenance expenses [4][21]. - Higher payroll-related costs and expenses from a planned outage contributed to the increased costs, although these were partially offset by higher commercial sales volumes and rate relief in South Dakota [4][21]. Natural Gas Distribution Segment - The natural gas distribution segment reported a seasonal loss of $7.4 million in Q2 2025, compared to a loss of $5.0 million in 2024, driven by higher operation and maintenance expenses and unfavorable weather conditions [5][25]. - Operating revenues increased to $206.9 million in Q2 2025 from $201.5 million in 2024, with a notable increase in purchased natural gas sold [22][25]. Pipeline Segment - The pipeline segment reported earnings of $15.4 million in Q2 2025, down from $17.3 million in 2024, impacted by higher operation and maintenance expenses and the absence of a customer settlement from the previous year [8][26]. - Operating revenues for the pipeline segment increased to $56.3 million in Q2 2025 from $52.9 million in 2024, supported by higher transportation revenue from recent expansion projects [26]. Guidance and Strategic Outlook - The company narrowed its full-year earnings guidance to a range of $0.88 to $0.95 per share, reflecting midyear performance and weather impacts [6][9]. - Long-term EPS guidance remains unchanged, with an expected growth rate of 6%-8% [6][9]. Regulatory Updates - The company is actively pursuing regulatory approvals for various projects, including a General Rate Case in Wyoming requesting a $7.5 million annual increase, and applications for new projects in North Dakota and Idaho [7][22]. - Rate relief in Washington and Montana has partially offset seasonal losses in the natural gas distribution segment [5][25]. Capital Expenditures - Total capital expenditures for 2025 are estimated at $539 million, with significant investments planned in electric and natural gas distribution segments [18][22]. Other Financial Data - As of June 30, 2025, the company reported total assets of $6.946 billion and total equity of $2.732 billion, with a book value per common share of $13.37 [31]. - The market price per common share was $16.67, representing 124.7% of the book value [31].

Core Viewpoint - The Zacks Utilities sector is expected to see a 0.7% increase in earnings for Q2 2025, driven by higher revenues of 7.5%, supported by new rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - MDU Resources Group is anticipated to benefit from customer growth in electric and natural gas sectors, with an Earnings ESP of +20% and a Zacks Rank 2, despite a projected earnings decrease of 59.4% year-over-year [7][8] - ONE Gas is expected to report earnings of $1.75 per share, reflecting a 37.8% increase from the previous year, supported by new rates and infrastructure investments, with an Earnings ESP of +3.22% and a Zacks Rank 2 [9][10] - Sempra Energy's earnings are projected at 83 cents per share, a decrease of 6.7% from the prior year, benefiting from renewable energy investments and data center demand, with an Earnings ESP of +0.60% and a Zacks Rank 2 [11] - Spire is expected to show an improvement in fiscal third-quarter earnings, with a projected loss of 9 cents per share, indicating a 35.7% improvement year-over-year, supported by advanced meter installations and customer growth, with an Earnings ESP of +14.81% and a Zacks Rank 3 [12][13] Group 2: Factors Influencing Performance - Utility providers are benefiting from higher electricity rates, acquisitions, cost reductions, and energy-efficiency programs, which enhance their overall performance [3] - The installation of smart meters is improving operational efficiency and customer engagement, leading to reduced costs and increased revenue [4] - The growing demand from data centers, particularly those supporting artificial intelligence, is significantly increasing electricity consumption, positively impacting utility revenues [5] - Economic improvements in service territories are creating fresh demand for utility services, further boosting revenues [4][5][6]

Group 1 - MDU Resources Group, Inc. will host a webcast for its second quarter 2025 earnings conference call on August 7 at 2 p.m. ET, with results released before U.S. markets open that day [1] - The webcast can be accessed through the company's website under the "Investors" section, and a replay will be available after the event [1] Group 2 - 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 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, affordable, and environmentally responsible energy solutions [2]

Financial Performance & Guidance - The company's GAAP earnings in 2014 were $297.5 million, compared to $278.2 million in 2013[11] - Adjusted earnings increased from $191.5 million in 2013 to $206.0 million in 2014[13] - The company provides 2015 earnings per share guidance of $1.05 to $1.20 adjusted, and $0.80 to $0.95 GAAP[15] Business Segment Performance - Construction Materials & Services annual adjusted earnings increased from $103.1 million in 2013 to $114.4 million in 2014[18] - Electric & Natural Gas Utilities annual earnings increased from $67.2 million in 2013 to $72.5 million in 2014[26] - Pipeline & Energy Services annual adjusted earnings increased from $15.1 million in 2013 to $22.6 million in 2014[33] - Exploration & Production annual earnings increased from $94.5 million in 2013 to $96.8 million in 2014[40] Capital Investments & Outlook - The company plans to invest approximately $3.9 billion over the next 5 years, excluding E&P capital expenditures[47, 48] - The company plans to invest approximately $1.8 billion in the Electric & Natural Gas Utilities segment over the next 5 years[31, 54] - The company plans to invest approximately $1.1 billion in the Pipeline & Energy Services segment over the next 5 years[38, 54] - The company estimates gross capital expenditures of $778 million for 2015, funded by operating cash flows ($650M - $700M), debt ($150M - $200M), and potential asset sales ($0 - $100M+)[50, 51]