Group 1 - MDU Resources Group Inc. has elected Darrel T. Anderson as vice chair of its board of directors, effective immediately [1][2] - Anderson has been an independent director since 2023 and has extensive experience in the regulated utility industry, previously serving as president and CEO of IDACORP and Idaho Power Company [2] - The election of Anderson is part of a planned succession process, reflecting the company's commitment to governance best practices [2] Group 2 - MDU Resources Group Inc. is a member of the S&P SmallCap 600 index and provides essential products and services through its regulated electric and natural gas distribution and pipeline segments [4] - The company serves over 1.2 million customers across eight states and is celebrating its 100th anniversary [4] - MDU Resources operates in the Pacific Northwest and Midwest, focusing on infrastructure that delivers natural gas and electricity [4]

Financial Data and Key Metrics Changes - The company reported full-year earnings of $281.1 million or $1.37 per share on a GAAP basis for 2024, compared to $414.7 million or $2.03 per share in 2023 [22] - Income from continuing operations for 2024 was $181.1 million or $0.88 per share, down from $330.1 million or $1.62 per share in 2023 [23] - Adjusted income from continuing operations for 2024 was $184.4 million or $0.90 per share, a 22% increase compared to $150.8 million or $0.74 per share in 2023 [24] Business Line Data and Key Metrics Changes - The Electric Utility segment reported earnings of $74.8 million in 2024, up from $71.6 million in 2023, primarily due to higher retail sales revenue from rate relief [25] - The Natural Gas segment reported earnings of $46.9 million in 2024, down from $48.5 million in 2023, attributed to higher operation and maintenance expenses [26] - The Pipeline segment achieved record earnings of $68 million in 2024, compared to $46.9 million in 2023, driven by record transportation volumes and increased storage revenue [27][28] Market Data and Key Metrics Changes - The combined retail customer base grew by 1.4% in 2024, indicating a need for proactive management of utility infrastructure [11] - The company experienced a 6.8% growth in rate base in 2024 [11] Company Strategy and Development Direction - The company aims to be a pure-play regulated energy delivery business, focusing on continued growth and operational excellence [9][18] - A capital investment of $3.1 billion is anticipated over the next five years, targeting 7% to 8% utility rate base growth and 1% to 2% annual customer growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth prospects, citing strong performance in electric and natural gas utilities and pipeline services [20] - The company is focused on delivering safe and reliable services while seeking regulatory recovery for investments [14] Other Important Information - The company completed the spin-off of Everus Construction Group and Knife River, with results reported as discontinued operations [6] - The company initiated 2025 earnings per share guidance in the range of $0.88 to $0.98 per share, reflecting strong performance across segments [17] Q&A Session Summary Question: Change in guidance around equity issuance - Management clarified that there is no real change in the guidance regarding equity issuance, with no expected equity issuance in 2025 [34] Question: Northwest North Dakota gas potential pipeline expansion - Management indicated that the project is to serve a natural gas-fired electric generating station, with capital increases anticipated in 2028 [38] Question: Breakdown of 2025 guidance - Management discussed potential drivers for reaching the high end of the guidance range, including strong storage performance and rate relief [58][60] Question: Bakken East nonbinding MOU - Management confirmed that they are evaluating results from the open season and will move towards binding commitments based on customer interest [68]

Year-End Earnings Call February 6, 2025 1 Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events or developments that the company anticipates will or may occur in the future, including, but not limited to, such things as estimates for growth, stockholder value creation, our CORE strategy, capital expenditures, financial guida ...

Core Insights - MDU Resources Group Inc. reported fourth-quarter 2024 operating earnings per share (EPS) of 34 cents, which was below the Zacks Consensus Estimate of 38 cents by 10.5%, but showed a year-over-year improvement of 9.7% [1] - Adjusted earnings for 2024 were 90 cents per share, reflecting a 21.6% increase from 74 cents in 2023 [1] Revenue Performance - Fourth-quarter total operating revenues increased by 7.1% to $535.5 million from $499.9 million in the same period of 2023 [2] - Total revenues for 2024 were $1.76 billion, down 2.5% from $1.80 billion in 2023 [2] Expense and Income Analysis - Total operating expenses were approximately $441 million, up 7% from $412 million in the year-ago quarter [3] - Operating income reached $94.5 million, a 7.5% increase from $87.9 million in the previous year [3] - Interest expenses decreased to $28 million, down 2.1% year over year [3] Cash Flow and Financial Position - As of December 31, 2024, cash and cash equivalents were $66.9 million, down from $77 million as of December 31, 2023 [4] - Net cash provided by operating activities for 2024 was $502.3 million, compared to $332.6 million in the prior year [4] Future Guidance - For 2025, MDU Resources expects earnings in the range of 88-98 cents per share, with the Zacks Consensus Estimate at 98 cents, which is at the higher end of the company's guidance [5] - The company anticipates annual customer growth in electric and natural gas sectors of 1-2% [5] - Planned investments for 2025 are $533 million, with a total of $3.06 billion earmarked for the 2025-2029 period [5] Market Position - MDU Resources currently holds a Zacks Rank 1 (Strong Buy) [6]

Financial Performance - Net income for 2024 was $281.1 million, a decrease of 32.2% from $414.7 million in 2023[2] - The company reported a net income of $55.2 million for Q4 2024, down from $170.7 million in Q4 2023, with income from continuing operations at $70.5 million compared to $136.2 million in the previous year[26] - Adjusted income from continuing operations for Q4 2024 was $70.5 million, an increase from $64.0 million in Q4 2023, while adjusted earnings per share rose to $0.34 from $0.31[26] - The natural gas distribution business reported a net income of $46.9 million for the full year, down from $48.5 million in 2023, primarily due to higher operation and maintenance expenses[32] - The Other segment's net income for the full year was $91.4 million, down 63% from $247.7 million in 2023, largely due to the absence of a prior year gain related to the tax-free exchange of retained shares in Knife River[39] Revenue and Earnings Growth - Regulated energy delivery earnings increased by 13.6% year-over-year, totaling $189.7 million[3] - The electric utility segment's earnings increased by 4.5% year-over-year, totaling $74.8 million[8] - The pipeline segment achieved record earnings of $68.0 million, up 45.0% year-over-year[8] - Operating revenues for the pipeline business increased by 19% to $211.8 million in 2024, compared to $177.6 million in 2023[34] - The pipeline business reported a 37% increase in operating income for the full year, reaching $94.5 million, up from $69.2 million in 2023[34] Capital Investment and Future Expectations - MDU Resources plans a capital investment of $533 million for 2025[11] - For 2025, the company expects earnings per share to be in the range of $0.88 to $0.98[11] - The company anticipates a long-term compound annual growth of 7% to 8% on utility rate base and 1% to 2% on customer growth annually[11] Operational Metrics - Record annual pipeline transportation volumes rose by 8.1% year-over-year[3] - The utility rate base grew by 6.8% year-over-year[3] - Transportation volumes for the pipeline business increased to 613.2 MMdk for the full year, compared to 567.2 MMdk in 2023[34] - The company experienced a 4% increase in retail sales volumes in the natural gas distribution segment, primarily driven by residential and commercial customers[31] Cost and Expense Management - Operating revenues for the electric business decreased by 7% to $99.0 million in Q4 2024, while total operating expenses fell by 8% to $78.3 million[27] - Costs attributable to strategic initiatives for 2024 amounted to $4.4 million, net of tax, compared to $1.1 million in Q4 2023[26] - The average cost of electric fuel and purchased power per kWh decreased to $0.021 in Q4 2024 from $0.027 in Q4 2023[27] - The average cost of natural gas per dk increased to $6.04 in Q4 2024 from $5.65 in Q4 2023[29] Asset and Equity Position - Total assets as of December 31, 2024, were $7,039 million, with total equity of $2,691 million and total debt of $2,293 million[42] - The book value per common share was $13.19, while the market price per common share was $18.02, reflecting a market value of 136.6% of book value[42] Corporate Actions - MDU Resources completed the spinoff of Everus Construction Group on October 31, 2024, reporting related results as discontinued operations[9] - The company completed the separations of Knife River and Everus into independent publicly-traded companies, impacting historical results shown in discontinued operations[36]

Core Insights - MDU Resources Group Inc. reported strong financial results for 2024, driven by regulated growth and key infrastructure projects following the spinoff of Everus Construction Group [1][2][7] Financial Performance - Net income for 2024 was $281.1 million, a decrease from $414.7 million in 2023 [2][7] - Earnings per share (diluted) dropped to $1.37 from $2.03 year-over-year [2][7] - Income from continuing operations was $181.1 million, down from $330.1 million in 2023 [2][7] - Adjusted income from continuing operations increased to $184.4 million from $150.8 million [2][7] Segment Performance Electric Utility Segment - Electric utility earnings rose by 4.5% year-over-year to $74.8 million [8][27] - Rate relief contributed an additional $7.1 million in revenue [8] - The segment faced challenges from lower volumes due to cooler weather and higher operational expenses [4][27] Natural Gas Distribution Segment - The natural gas distribution segment reported stable performance with net income of $29.4 million in Q4 2024, down from $30.5 million in Q4 2023 [30][31] - Higher retail sales volumes increased by 4.0%, primarily in residential and commercial sectors [30] - Rate relief in North Dakota and South Dakota supported revenue growth despite higher operational costs [30][31] Pipeline Segment - The pipeline segment achieved record annual results with net income of $68.0 million, a 45% increase from $46.9 million in 2023 [34] - Transportation volumes increased by 8.1% year-over-year, driven by new projects [7][34] - The segment benefited from strategic expansion projects and new Federal Energy Regulatory Commission approved rates [6][34] Regulatory Updates - Rate relief actions in North Dakota, South Dakota, and Montana contributed significantly to revenue increases [8][30] - The North Dakota Public Service Commission approved a settlement for an annual revenue increase of $9.4 million effective December 1, 2024 [8] Future Guidance - For 2025, the company expects earnings per share in the range of $0.88 to $0.98 [11] - Planned capital investment for 2025 is $533 million, with a long-term growth target of 7% to 8% on utility rate base [11][19]

Core Insights - MDU Resources (MDU) and Atmos Energy (ATO) are being compared for value investment opportunities, with MDU currently showing stronger potential for value investors [1][3]. Valuation Metrics - MDU has a forward P/E ratio of 17.87, while ATO has a forward P/E of 19.67, indicating MDU may be undervalued compared to ATO [5]. - MDU's PEG ratio is 2.62, compared to ATO's PEG ratio of 2.77, suggesting MDU has a more favorable earnings growth outlook relative to its valuation [5]. - MDU's P/B ratio is 1.17, while ATO's P/B ratio is 1.80, further supporting MDU's position as a more attractive investment based on valuation metrics [6]. Analyst Outlook - MDU has a Zacks Rank of 1 (Strong Buy) due to impressive earnings estimate revision activity, while ATO has a Zacks Rank of 2 (Buy), indicating a more favorable analyst outlook for MDU [3][7]. - MDU's overall Value grade is B, whereas ATO's Value grade is D, reinforcing the conclusion that MDU is the superior option for value investors at this time [6][7].

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BISMARCK, N.D., Jan. 16, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) will webcast its year-end 2024 earnings conference call at 2 p.m. ET Feb. 6. The company will release its year-end results before U.S. financial markets open that day. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click "Year-End 2024 Earnings Conference Call." After the conclusion of the webcast, a replay will be available at the same location. About MDU Resou ...

Core Viewpoint - MDU Resources (MDU) is currently viewed as a more attractive investment option compared to Atmos Energy (ATO) for value investors based on earnings estimate revisions and valuation metrics [3][7]. Valuation Metrics - MDU has a forward P/E ratio of 18.11, while ATO has a forward P/E of 19.25 [5]. - MDU's PEG ratio is 2.66, compared to ATO's PEG ratio of 2.75, indicating MDU's expected earnings growth is more favorable [5]. - MDU's P/B ratio stands at 1.18, whereas ATO's P/B ratio is 1.77, suggesting MDU is more undervalued relative to its book value [6]. Analyst Outlook - MDU has a Zacks Rank of 1 (Strong Buy), indicating a more positive analyst outlook due to stronger earnings estimate revision activity compared to ATO, which has a Zacks Rank of 2 (Buy) [3][7]. Value Grades - MDU has a Value grade of B, while ATO has a Value grade of D, reflecting MDU's more attractive valuation metrics [6].