[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% |

Pipeline segment reports record first quarter earnings, up 13.9% Natural gas distribution earnings up 11.5% 2025 guidance affirmed; earnings per share in the range of $0.88 to $0.98 Strong start to the year supports company's transition to a pure-play regulated energy delivery businessBISMARCK, N.D., May 8, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) today announced its financial results for the first quarter of 2025, reporting solid performance across its regulated energy delivery segments ...

Company Overview - MDU Resources Group Inc. is a member of the S&P SmallCap 600 index, providing electric 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, focusing on delivering safe, reliable, affordable, and environmentally responsible energy solutions [2] Upcoming Events - MDU Resources will webcast its first quarter 2025 earnings conference call on May 8 at 2 p.m. ET, with results released before U.S. financial markets open [1] - The webcast can be accessed through the company's website under the "Investors" section, with a replay available post-event [1]

Group 1 - The core focus of the investment group "Energy Profits in Dividends" is to generate a 7%+ income yield by investing in energy stocks while minimizing principal loss risk [1] - The leader of the group emphasizes income generation through energy stocks and closed-end funds (CEFs), while also managing risk through options [1] - The group has been covering both traditional and renewable energy sectors since 2010, targeting international companies that have a competitive advantage and offer strong dividend yields [1]

Company Structure and Segments - The Company executed the separation of Knife River, its construction materials and contracting business, on May 31, 2023, resulting in Knife River becoming an independent, publicly-traded company[19]. - The Company completed the separation of Everus, its construction services business, on October 31, 2024, resulting in Everus becoming an independent, publicly-traded company[19]. - As of December 31, 2024, the Company was organized into three reportable business segments: electric, natural gas distribution, and pipeline[20]. - The Company operates through three reportable business segments: electric, natural gas distribution, and pipeline, with Montana-Dakota being a key subsidiary in these segments[20][22]. Workforce and Culture - The Company had 2,052 employees as of December 31, 2024, focusing on building a strong workforce with an emphasis on safety and integrity[24]. - As of December 31, 2024, the Company had 2,052 employees, with 702 employees represented by collective-bargaining agreements[24][27]. - The Company emphasizes a "CORE" strategy prioritizing customers, operational excellence, and employee-driven culture to achieve industry-leading performance[18]. - The Company is committed to safety and health in the workplace, with established policies and training to support a strong safety culture[32]. Financial Performance - In 2024, Montana-Dakota served 145,686 customers, generating total revenues of $355.7 million, an increase from $347.6 million in 2023[45]. - The natural gas distribution operations served 1,065,593 customers across eight states, with total revenues of $1,095.3 million in 2024, a decrease from $1,212.3 million in 2023[74]. - Residential customer revenues decreased from $726.1 million in 2023 to $651.8 million in 2024, while commercial revenues also saw a decline from $441.2 million to $400.8 million[74]. - Transportation and other revenues for natural gas distribution operations increased to $105.8 million in 2024 from $75.3 million in 2023[74]. - The total retail electric revenues for 2024 were $355.7 million, an increase from $347.6 million in 2023, with residential customers generating $139.9 million in revenues[45]. Environmental Initiatives - Approximately 38% of the electricity delivered to customers from Montana-Dakota's owned generation in 2024 was from renewable resources[49]. - The carbon dioxide emission intensity of Montana-Dakota's electric generation resource fleet has been reduced by approximately 38% since 2005[49]. - The Company has developed renewable generation with lower or no GHG emissions as part of its environmental responsibility initiatives[34]. - The company expects to incur environmental-related capital expenditures of $13.1 million, $21.6 million, and $15.9 million in 2025, 2026, and 2027, respectively[88]. - In 2024, the EPA published final rules related to GHG emissions, which may impact the company's business processes and future projects[105]. Capital Investments and Expenditures - Montana-Dakota's net electric plant investment was $1.8 billion and its rate base was $1.5 billion as of December 31, 2024[42]. - The natural gas distribution operations' net plant investment was $2.6 billion, with a rate base of $2.0 billion as of December 31, 2024[73]. - WBI Energy Transmission's net plant investment was $984.2 million as of December 31, 2024[93]. - Montana-Dakota incurred approximately $2.6 million in capital expenditures in 2024 for environmental compliance and coal ash management[71]. - The natural gas distribution operations incurred $13.2 million in capital expenditures in 2024 for infrastructure supporting multiple RNG facilities[88]. Regulatory and Compliance - Montana-Dakota's electric operations are subject to various regulatory mechanisms that can impact its results, including monthly fuel and purchased power tracking adjustments[61]. - The pipeline operations did not incur any material capital expenditures related to compliance with environmental laws in 2024 and have no planned expenditures for 2025[106]. - The company expects to recover operational and capital expenditures for GHG regulatory compliance in rates consistent with other reasonable costs[87]. - Montana-Dakota is investigating potential soil and groundwater impacts from historic manufactured gas plants, which may lead to recovery costs through natural gas rates[89]. Customer and Market Insights - The percentage of electric retail revenues by jurisdiction for 2024 was 65% from North Dakota, 21% from Montana, 9% from Wyoming, and 5% from South Dakota[46]. - The percentage of retail sales revenues by jurisdiction in 2024 showed Washington at 34%, Idaho at 29%, and North Dakota at 12%[76]. - Montana-Dakota's firm transportation agreements with WBI Energy Transmission represented 19% of the subscribed firm transportation contract demand in 2024[99].

Core Insights - MDU Resources Group, Inc. has signed a purchase agreement to acquire a 49% ownership interest in the Badger Wind Farm, representing 122.5 MW of its total 250 MW generation capacity, pending regulatory approval [1][2][3] Group 1: Acquisition Details - The estimated cost for MDU to purchase this stake in the Badger Wind Farm is $294 million [3] - MDU previously executed a Power Purchase Agreement (PPA) for 150 MW of the Badger Wind Farm's output, which will be reduced to 27.5 MW upon closing of the ownership purchase [3] Group 2: Strategic Importance - The investment aligns with MDU's 2024 Integrated Resource Plan (IRP), which identified the need for additional generation capacity to meet future energy demands [2] - This acquisition is part of MDU's five-year capital expenditure plan and is considered the least-cost option for customers [2][3] Group 3: Impact on Generation Mix - The addition of the Badger Wind Farm is expected to change MDU's nameplate generation mix, increasing the share of renewables from 29% to 39%, while reducing coal from 31% to 26% and gas from 40% to 35% [4] Group 4: Regulatory Considerations - MDU has filed an Advance Determination of Prudence (ADP) with the North Dakota Public Service Commission to ensure the prudence of this investment [4]

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 ...