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Core Viewpoint - Rosen Law Firm is reminding investors who purchased Everus Construction Group, Inc. common stock during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1][2]. Group 1: Class Action Details - Investors who acquired Everus Construction common stock during the Class Period or through the spinoff from MDU Resources may be eligible for compensation without any out-of-pocket fees [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by June 3, 2025 [3]. - The lawsuit alleges that Everus Construction made false or misleading statements regarding its business operations, which led to investor damages when the truth was revealed [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen has been recognized as a leading figure in the plaintiffs' bar, highlighting the firm's expertise in this area [4].

Group 1 - MDU Resources Group, Inc. has elected Darrel T. Anderson as the new independent chair of the board, succeeding Dennis W. Johnson, effective immediately [1] - The transition reflects a disciplined approach to board leadership succession, ensuring continuity and strong governance [2] - Nicole Kivisto, president and CEO, acknowledged Dennis Johnson's leadership during the company's transformation to a regulated energy delivery business and expressed confidence in Anderson's leadership [3] Group 2 - Anderson's election as chair is part of a structured governance approach that emphasizes leadership development and succession planning [3] - He joined the board in 2023 and has previously served as vice chair and chair of the Compensation and Human Capital Committee, demonstrating a commitment to thoughtful succession planning [3] - Anderson has extensive industry experience, including his role as president and CEO of IDACORP, Inc. and Idaho Power Company, which will be beneficial for MDU Resources as it executes its strategic priorities [4] Group 3 - MDU Resources Group, Inc. is a member of the S&P SmallCap 600 index and provides electric and natural gas distribution services to over 1.2 million customers across the Pacific Northwest and Midwest [5] - The company's pipeline business operates a network of over 3,800 miles of natural gas pipelines and storage systems, ensuring reliable energy delivery [5] - MDU Resources has a legacy of over a century and remains focused on providing safe, reliable, and environmentally responsible energy services [5]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [4] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow, targeting growth investors [5] Momentum Score - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes, catering to momentum traders [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth potential, and positive momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10] Stock Highlight: MDU Resources - MDU Resources Group, based in Bismarck, ND, operates as a utility natural gas distribution company and has a Zacks Rank of 2 (Buy) with a VGM Score of A [12] - The company has a Value Style Score of B, supported by a forward P/E ratio of 18.35, making it attractive to value investors [13] - MDU's earnings estimate for fiscal 2025 has been revised upwards, with the Zacks Consensus Estimate increasing by $0.01 to $0.95 per share, and it has an average earnings surprise of 1.3% [13]

Financial Performance - MDU Resources Group's net income decreased from $82.5 million in 2024 to $74.7 million in 2025 [31] - Earnings per share decreased from $0.40 in 2024 to $0.37 in 2025 [31] - Income from continuing operations decreased from $100.9 million in 2024 to $82.0 million in 2025 [31] - Electric Utility earnings decreased from $17.9 million in 2024 to $15.0 million in 2025 [36] - Natural Gas Utility earnings increased from $40.1 million in 2024 to $44.7 million in 2025 [39] - Pipeline earnings increased from $15.1 million in 2024 to a record $17.2 million in 2025 [42] Regulatory and Operational Updates - Natural Gas Distribution in Washington saw a rate increase of 7.9%, resulting in $29.8 million in additional annual revenue [13] - Natural gas customer count increased 1.5% year-over-year [40] - The company has 580 MW of data center load under signed electric service agreements [12, 16] - The company is considering purchasing a 49% ownership interest in Badger Wind Farm, representing 122.5 MW of the total 250 MW capacity [21]

Financial Data and Key Metrics Changes - The company reported income from continuing operations of $82.5 million or $0.40 per share for Q1 2025, a 10.4% increase compared to the same period last year [4] - First quarter earnings were $82 million or $0.40 per diluted share, compared to $100.9 million or $0.49 per diluted share in Q1 2024 [12] - The natural gas utility segment reported earnings of $44.7 million, an 11.5% increase from $40.1 million in Q1 2024 [14] Business Line Data and Key Metrics Changes - The electric utility segment reported earnings of $15 million, down from $17.9 million in the same period last year, despite a 25% increase in retail electric volumes [12][39] - The pipeline segment achieved record first quarter earnings of $17.2 million, up from $15.1 million in Q1 2024, driven by growth projects and increased demand for services [9][15] Market Data and Key Metrics Changes - The utility experienced a 1.4% combined retail customer growth compared to a year ago, aligning with the projected annual growth rate of 1% to 2% [5] - The company signed electric service agreements for 580 megawatts of data center load, with 180 megawatts currently online and an additional 100 megawatts expected to come online later this year [7] Company Strategy and Development Direction - The company is focused on a core strategy emphasizing customer and community engagement, operational excellence, and employee-driven initiatives, with a capital investment plan of $3.1 billion over the next five years [11] - 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's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the Bakken region, highlighting the increasing gas-to-oil ratio and the need for takeaway capacity [22][24] - The company remains committed to wildfire prevention and has seen legislative support in three of its operating states, which will help limit liability and enhance mitigation efforts [6][58] Other Important Information - The company plans to reestablish an ATM program to meet future equity needs as part of its capital investment strategy [16] - The company is affirming its earnings per share guidance in the range of $0.88 to $0.98 for the full year [10] Q&A Session Summary Question: Are the tariffs from large customers not accretive for new resources? - Management indicated that the current capital-light strategy for data centers is beneficial, as it allows for shared costs with large customers, which in turn benefits retail customers [18][19] Question: How might disruptions in the Bakken affect North Dakota? - Management believes in the long-term viability of the Bakken, noting that while oil prices fluctuate, the increasing gas production will provide benefits for the pipeline business and utility customers [22][24] Question: How does the company view housing starts in relation to economic sensitivity? - Management noted that customer growth has remained stable within the 1% to 2% range, even during economic fluctuations, with Idaho being a particularly strong growth area [28][30] Question: What are the next steps for the Bakken East project? - Management stated that conversations with customers are ongoing, and they are encouraged by the feedback received, but further steps will depend on route design and customer needs [48][49] Question: How will recent wildfire legislation impact mitigation plans? - Management indicated that the legislation will help formalize existing mitigation plans and limit liability, while prevention remains the top priority [58][59] Question: What is the anticipated size of the ATM program? - Management has not yet determined the size of the ATM program but plans to size it appropriately to meet future needs [60] Question: What is the starting point for the long-term growth rate? - Management clarified that the long-term growth rate guidance is based on the adjusted 2024 number or the 2025 range provided earlier this year [63]

Financial Data and Key Metrics Changes - The company reported income from continuing operations of $82.5 million or $0.40 per share for Q1 2025, a 10.4% increase compared to the same period last year [4][13] - First quarter earnings were $82 million compared to $100.9 million for Q1 2024, indicating a decrease in overall earnings [13] - The natural gas utility segment reported earnings of $44.7 million, an 11.5% increase year over year [14] Business Line Data and Key Metrics Changes - The electric utility segment reported earnings of $15 million, down from $17.9 million in Q1 2024, despite a 25% increase in retail electric volumes [13][14] - The pipeline segment achieved record first quarter earnings of $17.2 million, up from $15.1 million in the previous year, driven by growth projects and increased demand [9][15] - The natural gas distribution segment's rate relief contributed significantly to its quarterly results, with new rates effective in Washington and Montana [7][8] Market Data and Key Metrics Changes - The utility experienced a 1.4% combined retail customer growth compared to a year ago, aligning with the projected annual growth rate of 1% to 2% [5] - The company signed a purchase agreement to acquire a 49% interest in the Badger Wind Farm, contingent on regulatory approvals [5] Company Strategy and Development Direction - The company is focused on a core strategy emphasizing customer and community engagement, operational excellence, and employee-driven initiatives [12] - A capital investment of $3.1 billion is anticipated over the next five years, with a target of 7% to 8% compound annual utility rate base growth [12] - The company is committed to maintaining a 60% to 70% annual dividend payout ratio while targeting long-term EPS growth of 6% to 8% [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of the Bakken region, despite potential short-term disruptions due to oil prices [24][25] - The company remains proactive in wildfire prevention and has seen legislative support that limits liability, enhancing operational certainty [6][60] Other Important Information - The company plans to reestablish an ATM program to meet future equity needs as part of its capital investment strategy [16] - The anticipated filing of a general rate case in Idaho is expected in the second quarter of 2025 [9] Q&A Session Summary Question: Are the tariffs from large customers not accretive for new resources? - Management indicated that the capital-light strategy for data centers is beneficial, as it allows for shared costs with large customers, providing benefits to the retail customer base [18][19] Question: Thoughts on potential disruptions to the Bakken region? - Management believes in the long-term viability of the Bakken play, citing increasing gas production and industrial demand as positive indicators [24][25] Question: Impact of housing starts on service areas? - Management noted that customer growth has remained stable within the 1% to 2% range, with Boise being a particularly strong growth area [30][32] Question: Clarification on accounting restatements? - Management explained that the restated numbers primarily reflect the separation of discontinued operations and some ongoing costs related to previous separations [33][34] Question: Confidence in the Bakken East project development? - Management expressed optimism based on ongoing customer conversations and feedback, while noting that the project is not currently in the five-year capital forecast [48][49] Question: Role of recent tariffs in the Bakken East project's attractiveness? - Management stated that while tariffs could impact costs, they do not foresee them derailing the project [55][57] Question: Impact of wildfire legislation on mitigation plans? - Management highlighted that existing proactive measures will be formalized through new legislation, which will help limit liability [58][60] Question: Size of the anticipated ATM program? - Management has not yet determined the size of the ATM program but indicated it would be sized to meet future needs starting in 2026 [61][62] Question: Clarification on long-term growth rate starting point? - Management clarified that the long-term growth rate is based on adjusted 2024 numbers or the 2025 range provided earlier [63][64]

MDU Resources Group Inc. (MDU) reported first-quarter 2025 operating earnings per share (EPS) of 40 cents, which surpassed the Zacks Consensus Estimate of 36 cents by 11.1%. However, the bottom line decreased 18.4% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Total Revenues of MDUFirst-quarter total operating revenues improved 14.7% to $674.8 million from $588.2 million in the comparable period of 2024.Highlights of MDU’s Earnings ReleaseTotal operating expenses were ...

[Part I -- Financial Information](index=6&type=section&id=Part%20I%20--%20Financial%20Information) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Operating revenues increased, but net income declined to **$82.0 million** due to discontinued operations, with total assets at **$6.96 billion** [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (Q1 2025 vs. Q1 2024) | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | **Operating Revenues** | $674.8 million | $588.3 million | | **Operating Income** | $112.9 million | $96.7 million | | **Income from Continuing Operations** | $82.5 million | $74.7 million | | **Discontinued Operations, net of tax** | ($0.5 million) | $26.2 million | | **Net Income** | $82.0 million | $100.9 million | | **Diluted EPS from Continuing Operations** | $0.40 | $0.37 | | **Diluted EPS** | $0.40 | $0.49 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights | Metric | March 31, 2025 ($) | March 31, 2024 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $541.6 million | $1,319.9 million | $666.3 million | | **Net Property, Plant and Equipment** | $5,378.6 million | $5,060.2 million | $5,344.3 million | | **Total Assets** | $6,961.5 million | $7,839.9 million | $7,038.8 million | | **Total Current Liabilities** | $634.6 million | $922.8 million | $678.6 million | | **Long-Term Debt** | $2,032.0 million | $2,193.7 million | $2,130.9 million | | **Total Stockholders' Equity** | $2,743.1 million | $2,980.9 million | $2,690.6 million | - The **significant decrease** in current assets and liabilities compared to March 31, 2024, is primarily due to the **reclassification of the Everus business as discontinued operations** following its separation on October 31, 2024, resulting in **no assets or liabilities of discontinued operations** on the balance sheet as of March 31, 2025[29](index=29&type=chunk)[39](index=39&type=chunk)[47](index=47&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (Q1 2025 vs. Q1 2024) | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $217.5 million | $165.1 million | | **Net Cash Used in Investing Activities** | ($94.7 million) | ($117.3 million) | | **Net Cash Used in Financing Activities** | ($130.1 million) | ($35.5 million) | | **(Decrease) Increase in Cash** | ($7.4 million) | $12.3 million | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the Everus spin-off, revenue recognition, regulatory assets, debt, and a new **$294.0 million** wind project agreement - On October 31, 2024, the company completed the **tax-free spin-off of its Everus construction services business**, with historical results now presented as **discontinued operations**[15](index=15&type=chunk)[38](index=38&type=chunk)[43](index=43&type=chunk) - At the pipeline segment, remaining performance obligations for firm transportation and storage contracts totaled **$587.7 million** as of March 31, 2025, with **$82.6 million** expected to be recognized within the next 12 months[60](index=60&type=chunk)[61](index=61&type=chunk) - Montana-Dakota entered an agreement to purchase a **49% interest (122.5 MW)** in a 250 MW wind project for **$294.0 million**, contingent on regulatory approval, which will reduce its power purchase requirements[107](index=107&type=chunk) Disaggregated Revenue from Contracts with Customers (Q1 2025) | Revenue Type | Electric ($ Millions) | Natural Gas Distribution ($ Millions) | Pipeline ($ Millions) | Total ($ Millions) | | :--- | :--- | :--- | :--- | :--- | | Residential utility sales | $39.7 | $289.2 | - | $328.9 | | Commercial utility sales | $48.5 | $192.3 | - | $240.8 | | Industrial utility sales | $9.2 | $15.5 | - | $24.6 | | Natural gas transportation | - | $17.7 | $49.3 | $67.0 | | Natural gas storage | - | - | $6.0 | $6.0 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Consolidated earnings decreased to **$82.0 million** due to the Everus spin-off, despite strong natural gas and pipeline segment performance, as the company targets a **60-70%** dividend payout ratio - The company completed the separation of its **Everus construction services business** on October 31, 2024, transforming into a **pure-play regulated energy delivery company**[116](index=116&type=chunk) - A long-term dividend payout ratio target of **60% to 70%** of regulated energy delivery earnings has been established[118](index=118&type=chunk) Segment Net Income Contribution (Q1 2025 vs. Q1 2024) | Segment | Q1 2025 ($ Millions) | Q1 2024 ($ Millions) | | :--- | :--- | :--- | | Electric | $15.0 | $17.9 | | Natural gas distribution | $44.7 | $40.1 | | Pipeline | $17.2 | $15.1 | | Other | $5.6 | $1.6 | | **Income from continuing operations** | **$82.5** | **$74.7** | | Discontinued operations, net of tax | ($0.5) | $26.2 | | **Net income** | **$82.0** | **$100.9** | [Business Segment Financial and Operating Data](index=31&type=section&id=Business%20Segment%20Financial%20and%20Operating%20Data) Electric segment net income decreased to **$15.0 million**, while natural gas distribution and pipeline segments saw earnings growth to **$44.7 million** and **$17.2 million** respectively - Electric business earnings **decreased** due to **higher operation and maintenance expenses**, including generation station outage costs, and lower investment returns[128](index=128&type=chunk) - Natural gas distribution earnings **increased** due to **rate relief** in Washington, Montana, and South Dakota, and higher volumes from **colder weather**[128](index=128&type=chunk) - Pipeline earnings **grew** due to **growth projects** placed in service in 2024 and **strong demand for short-term firm capacity contracts**[128](index=128&type=chunk) [Liquidity and Capital Commitments](index=42&type=section&id=Liquidity%20and%20Capital%20Commitments) The company maintains strong liquidity with **$59.5 million** cash and **$580.0 million** available borrowing capacity, projecting **$536.3 million** in 2025 capital expenditures - At March 31, 2025, the Company had **$59.5 million** in cash and **$580.0 million** available borrowing capacity under its credit facilities[178](index=178&type=chunk) - Capital expenditures for 2025 are estimated to be approximately **$536.3 million**, focused on utility investments and pipeline system growth[184](index=184&type=chunk) - Total equity as a percent of total capitalization was **56%** at March 31, 2025, compared to **54%** at year-end 2024[191](index=191&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risks were reported compared to the 2024 Annual Report - There were **no material changes** in the Company's market risks from those reported in the 2024 Annual Report[199](index=199&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of the end of the period, the company's disclosure controls and procedures were **effective** at a reasonable assurance level[200](index=200&type=chunk) - **No material changes** occurred in the Company's internal control over financial reporting during the three months ended March 31, 2025[201](index=201&type=chunk) [Part II -- Other Information](index=47&type=section&id=Part%20II%20--%20Other%20Information) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported compared to the 2024 Annual Report - There were **no material changes** to the Company's legal proceedings as reported in the 2024 Annual Report[203](index=203&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were noted, but new risks from U.S. government tariffs and trade policy were highlighted - A new risk factor was highlighted: **U.S. government tariffs and changes in trade policy** could **increase the cost of raw materials and equipment**, cause **supply chain disruptions**, and **negatively impact financial results** if increased costs are not recoverable through rates[205](index=205&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company withheld **265,964 shares** at **$16.83** per share for tax obligations related to incentive plan vesting - In February 2025, **265,964 shares** were withheld by the Company at an average price of **$16.83** to pay taxes in connection with the vesting of shares from its Long-Term Performance-Based Incentive Plan[207](index=207&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 trading arrangements during the first quarter of 2025 - During the three months ended March 31, 2025, **no director or officer** of the Company **adopted or terminated a Rule 10b5-1 trading arrangement**[209](index=209&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) MDU Resources reported strong Q1 2025 results, driven by regulated energy segments, following the Everus spinoff Q1 2025 Financial Summary (vs. Q1 2024) | | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | **Net income** | $82.0 million | $100.9 million | | **Earnings per share, diluted** | $0.40 | $0.49 | | **Income from continuing operations** | $82.5 million | $74.7 million | | **Earnings per share from continuing operations, diluted** | $0.40 | $0.37 | - MDU Resources reported a strong start to 2025, driven by its regulated energy delivery segments. Key highlights include: - Pipeline segment reported record first-quarter earnings, up **13.9%** - Natural gas distribution earnings increased by **11.5%** - The company affirmed its full-year 2025 EPS guidance of **$0.88 to $0.98** - These results support the company's transition to a pure-play regulated energy delivery business[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) - On October 31, 2024, MDU Resources completed the spinoff of its construction services business, Everus. Prior period results have been restated, with Everus's historical results now reported as discontinued operations[3](index=3&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) MDU Resources' Q1 2025 performance varied across its Electric, Natural Gas Distribution, Pipeline, and Other segments [Electric Utility Segment](index=2&type=section&id=Electric%20Utility%20Segment) Electric Utility segment's Q1 2025 net income decreased due to higher O&M and lower investment returns, despite increased volumes Electric Segment Q1 Earnings | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $15.0 million | $17.9 million | (16.2)% | | **Operating Income** | $18.1 million | $22.8 million | (20.6)% | - Key performance drivers for the quarter included: - **Negative:** Higher operation and maintenance expense due to generation station outages, increased software/insurance costs, and lower returns on nonqualified benefit plan investments - **Positive:** Increased retail sales volumes (**+25.1%**), particularly from colder weather and a data center customer in North Dakota[5](index=5&type=chunk)[7](index=7&type=chunk)[23](index=23&type=chunk) - Regulatory activities include: - **North Dakota:** Filed for an advance determination of prudence to purchase an interest in the Badger Wind Farm - **Montana & Wyoming:** General rate case filings are anticipated later in 2025[7](index=7&type=chunk) [Natural Gas Distribution Segment](index=2&type=section&id=Natural%20Gas%20Distribution%20Segment) Natural Gas Distribution segment's Q1 2025 net income grew 11.5% to $44.7 million, driven by rate relief and colder weather demand Natural Gas Distribution Segment Q1 Earnings | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $44.7 million | $40.1 million | +11.5% | | **Operating Income** | $68.5 million | $58.3 million | +17.5% | - Earnings growth was primarily driven by: - Rate relief in Washington, Montana, and South Dakota - Increased retail sales volumes due to colder weather - A **1.5%** year-over-year increase in the natural gas customer count[6](index=6&type=chunk)[7](index=7&type=chunk)[24](index=24&type=chunk) - Key regulatory updates: - **Washington:** A multi-year rate case was approved, with a **$29.8 million** annual increase effective March 2025 - **Montana:** Interim rates of **$7.7 million** annually were approved, effective February 2025 - **Wyoming:** A **$2.6 million** annual rate increase has been proposed - **Idaho:** A general rate case filing is anticipated in Q2 2025[7](index=7&type=chunk) [Pipeline Segment](index=2&type=section&id=Pipeline%20Segment) Pipeline segment achieved record Q1 earnings of $17.2 million, up 13.9%, driven by new expansion projects and strong customer demand Pipeline Segment Q1 Earnings | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $17.2 million | $15.1 million | +13.9% | | **Operating Income** | $26.1 million | $22.6 million | +15.5% | - The record earnings were driven by revenue from growth projects, including the Wahpeton Expansion and 2023 Line Section 27 Expansion, as well as strong customer demand for short-term firm transportation and storage services[8](index=8&type=chunk)[25](index=25&type=chunk) - The company is pursuing further growth through: - A proposed **375-mile Bakken East pipeline project** to meet forecasted production growth - The **Baker Storage Field Enhancement** project, which would add **72 million cubic feet per day** of new firm storage deliverability[9](index=9&type=chunk)[10](index=10&type=chunk) [Other](index=10&type=section&id=Other) The 'Other' category's net income significantly decreased to $5.1 million due to the Everus spinoff reclassification - Following the spinoff of Everus on October 31, 2024, its historical results are now reported in discontinued operations. This is the primary reason for the significant change in the 'Other' segment's net income[27](index=27&type=chunk)[28](index=28&type=chunk) Other Segment Q1 Results | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Income from continuing operations** | $5.6 million | $1.6 million | +250.0% | | **Discontinued operations, net of tax** | ($0.5) million | $26.2 million | (101.9)% | | **Net Income** | $5.1 million | $27.8 million | (81.7)% | [2025 Guidance and Capital Expenditures](index=3&type=section&id=2025%20Guidance%20and%20Capital%20Expenditures) MDU Resources affirmed its 2025 EPS guidance and outlined a multi-year capital expenditure plan [2025 Guidance](index=3&type=section&id=2025%20Guidance) MDU Resources affirmed its full-year 2025 diluted EPS guidance of $0.88 to $0.98, based on normal operating conditions - The company affirmed its 2025 earnings per share guidance to be in the range of **$0.88 to $0.98**[4](index=4&type=chunk)[11](index=11&type=chunk) - Guidance is based on the following key assumptions for the rest of the year: - Normal weather, economic, and operating conditions - Electric and natural gas customer growth continuing at **1%-2%** annually - No equity issuances[13](index=13&type=chunk) [Capital Expenditures](index=6&type=section&id=Capital%20Expenditures) The company outlined a $3.064 billion capital expenditure plan for 2025-2029, with $536 million estimated for 2025 Estimated Capital Expenditures (2025-2029 Total) | Business Line | 2025 Est. (in millions) | 2025-2029 Total Est. (in millions) | | :--- | :--- | :--- | | Electric | $154 million | $1,178 million | | Natural gas distribution | $310 million | $1,410 million | | Pipeline | $72 million | $476 million | | **Total** | **$536 million** | **$3,064 million** | - The capital program is subject to ongoing review and modification. Actual expenditures may differ from estimates due to changes in load growth, regulatory decisions, and other factors[19](index=19&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section details consolidated statements of income, selected cash flows, and other key financial data [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 income from continuing operations increased to $82.5 million, while total net income decreased due to the Everus spinoff Consolidated Statements of Income (Unaudited, In millions) | | Three Months Ended March 31, | | :--- | :---: | :---: | | | **2025** | **2024** | | **Operating revenues** | $674.8 | $588.2 | | **Operating income** | $112.8 | $96.6 | | **Income from continuing operations** | $82.5 | $74.7 | | **Discontinued operations, net of tax** | ($0.5) | $26.2 | | **Net income** | $82.0 | $100.9 | [Selected Cash Flows Information](index=6&type=section&id=Selected%20Cash%20Flows%20Information) Q1 2025 saw increased net cash from operating activities, decreased investing cash use, and significantly increased financing cash use Selected Cash Flows (Unaudited, In millions) | | Three Months Ended March 31, | | :--- | :---: | :---: | | | **2025** | **2024** | | **Net cash provided by operating activities** | $217.5 | $165.1 | | **Net cash used in investing activities** | ($94.8) | ($117.3) | | **Net cash used in financing activities** | ($130.1) | ($35.5) | | **Cash, cash equivalents and restricted cash - end of period** | $59.5 | $89.3 | [Other Financial Data](index=11&type=section&id=Other%20Financial%20Data) As of March 31, 2025, the company's book value per share was $13.42, with a capital structure of 55.6% equity and 44.4% debt Financial Position as of March 31, 2025 | Metric | Value (in millions) | | :--- | :--- | | Book value per common share | $13.42 | | Total assets | $6,961 million | | Total equity | $2,743 million | | Total debt | $2,194 million | | **Capitalization Ratios:** | | | Total equity | 55.6% | | Total debt | 44.4% |