Financial Data and Key Metrics - Full year 2023 earnings were $414.7 million or $2.03 per share on a GAAP basis, compared to $367.5 million or $1.81 per share in 2022 [20] - Income from continuing operations in 2023 was $480.4 million or $2.36 per share, compared to $250.8 million or $1.23 per share in 2022 [20] - Adjusted income from continuing operations for 2023 was $305.1 million or $1.50 per share, compared to $254.5 million or $1.25 per share in 2022 [32] - The pipeline business posted record earnings of $46.9 million in 2023, a 33% increase from $35.3 million in 2022 [38] Business Line Performance - The combined utility business reported record earnings of $120.1 million in 2023, up from $102.3 million in 2022 [4] - Electric Utility earnings increased to $71.6 million in 2023 from $57.1 million in 2022, driven by higher retail sales revenue and transmission interconnect upgrades [4] - The natural gas utility business reported earnings of $48.5 million in 2023, up from $45.2 million in 2022, primarily due to higher retail sales revenues and investment returns [21] - Construction Services business reported record revenues of $2.85 billion and record earnings of $137.2 million in 2023, compared to $2.7 billion and $124.8 million in 2022 [22] - EBITDA for Construction Services increased 15% year-over-year to $222.7 million in 2023 [22] Market and Operational Data - The pipeline business achieved record annual transportation volumes in 2023, with a capacity of approximately 2.6 billion cubic feet of natural gas per day, reflecting a 6.6% annual growth rate over the previous 5 years [1] - The company plans to invest $405 million in the pipeline business over the next 5 years to expand natural gas transportation capacity [1] - The utility business serves 1.2 million customers, with rate base growth of 8.5% in 2023 and customer growth of 1.3% [29] - The company expects to grow rate base by approximately 7% compounded annually over the next 5 years and plans to invest $2.3 billion in utility infrastructure [29] Strategic Direction and Industry Competition - The company is transitioning to a pure-play regulated energy delivery business, with the spin-off of Knife River completed and the Construction Services spin-off expected by late 2024 [25] - The company is focusing on system growth in its pipeline business, with several expansion projects expected to be in service by 2024 [1] - Construction Services is well-positioned to benefit from increased bidding opportunities due to funding from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act [30] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about growth opportunities in regulated delivery projects and the strong demand for Construction Services [47] - The company initiated 2024 earnings guidance for regulated energy delivery businesses in the range of $170 million to $180 million [18] - Construction Services revenue guidance for 2024 is in the range of $2.9 billion to $3.1 billion, with EBITDA guidance of $220 million to $240 million [30] - The company expects to file multiyear rate cases in Washington and rate cases in Montana, Oregon, and Wyoming during 2024 [28] Other Important Information - The Heskett Unit IV natural gas-fired electric generating facility is expected to be fully operational by Q2 2024 after operational setbacks [17] - Interim natural gas rates in North Dakota were implemented on January 1, 2024, increasing revenues by $10.1 million or 6.5% [16] - The company maintains a strong balance sheet and ample access to working capital to finance operations [40] Q&A Session Summary Question: Update on MISO Tranche 1 transmission projects - The project is progressing within the $220 million capital budget, with expenditures expected in 2026 and 2027, and the property to be in service by 2028 [65][66] Question: Outlook for renewable-related customers - The company has picked up more renewable work in the Midwest and Southwest, with several projects targeted for backlog in the current quarter [50] Question: Impact of severe weather in California - The company has experienced some labor hour impacts due to severe weather but has also captured storm work opportunities in the Midwest [51] Question: Comparison of current guidance to prior years - Management views the current guidance as enthusiastic, reflecting strong demand for services and consistent backlog [54] Question: Timing of pipeline expansion projects - The Line Section 27 expansion is expected to come online in Q1 2024, and the Wahpeton expansion is expected in November 2024 [77] Question: Impact of Heskett Unit IV delay on power costs - Elevated costs from the January winter weather event will flow through fuel clause adjustments but are unrelated to Heskett [79][80] Question: Drivers of lower EBITDA guidance for Construction Services in 2024 - The guidance reflects new project starts and timing, with confidence in achieving record performance levels [81]

MDU Resources Group Inc. (NYSE:MDU) Q3 2023 Earnings Conference Call November 2, 2023 2:00 PM ET Company Participants Jason Vollmer - VP, CFO & Treasurer Dave Goodin - President, CEO & Director Jeff Thiede - President & CEO of MDU Construction Services Group, Inc Nicole Kivisto - CEO & President of Cascade Natural Gas Corp, Intermountain Gas Co & Montana-Dakota Utilities Co. Dariusz Lozny - Bank of America Chris Ellinghaus - Siebert Williams Shank Ryan Levine - Citi Brian Russo - Sidoti Operator Hello. My n ...

For the transition period from _____________ to ______________ Commission file number 1-03480 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 MDU RESOURCES GROUP INC (Exact name of registrant as specified in its charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered p ...

MDU Resources Group, Inc. (NYSE:MDU) Q2 2023 Results Conference Call August 3, 2023 2:00 PM ET Company Participants Jason Vollmer - Vice President, Chief Financial Officer and Treasurer Dave Goodin - President and CEO Stephanie Barth - Vice President, Chief Accounting Officer and Controller, MDU Resources Nicole Kivisto - President and CEO, Utility Group Rob Johnson - President, WBI Energy Jeff Thiede - President and CEO, MDU Construction Services Group Conference Call Participants Dariusz Lozny - Bank of A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission file number 1-03480 MDU RESOURCES GROUP INC (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fr ...

EMDU RESOL B D F Separation Announcement MDU LISTED 昌昌MDU RESOURC NYSE 6 KNIFE RIVER ANNOUNCEMENT MDU Resources Group board of directors has approved the previously announced separation of Knife River Knife River separation effective May 31 MDU Resources stockholders will retain their current shares of MDU On the distribution date of May 31, each MDU Resources stockholder will receive a distribution of one share of KNF for every four shares of MDU Management to present Knife River's investment highlights, o ...

Financial Data and Key Metrics Changes - The company reported first quarter earnings of $38.3 million or $0.19 per share on a GAAP basis, with adjusted earnings of $46.6 million or $0.23 per share, compared to first quarter 2022 GAAP earnings of $31.7 million or $0.16 per share [6] - The combined utility business reported earnings of $55.5 million for the quarter compared to earnings of $47.6 million for the first quarter in 2022 [26] - The electric utility segment reported first quarter earnings of $16.6 million compared to $11.3 million for the same period in 2022 [26] Business Line Data and Key Metrics Changes - The natural gas utility segment reported first quarter earnings of $38.9 million compared to $36.3 million in the first quarter of 2022, driven by approved rate relief and a 4.2% increase in retail sales volumes [7] - Construction Services reported record quarterly revenue of $754.3 million in the first quarter, with earnings of $26.1 million compared to revenue of $552.6 million and earnings of $21.3 million for the same period in 2022 [8] - The Construction Materials business reported first quarter revenue of $307.9 million and a seasonal loss of $41.3 million compared to prior year first quarter revenue of $310 million and a seasonal loss of $40 million [9] Market Data and Key Metrics Changes - The company experienced record first quarter transportation volumes in its pipeline business, with increased transportation revenues due to the North Bakken expansion project [33] - The construction materials business was negatively impacted by unfavorable weather across most regions, particularly in the Pacific region, resulting in decreased volumes for certain products [9] Company Strategy and Development Direction - The company is constructing the Heskett Unit 4, an 88-megawatt natural gas-fired electric generating facility, expected to be operational this summer [11] - The company filed a rate case with the Federal Energy Regulatory Commission seeking rate increases for its transportation and storage services, with new rates expected to take effect August 1 [12] - The company is increasing its revenue guidance range for 2023 to $2.8 billion to $3 billion, expecting slightly higher margins compared to 2022 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in regulated energy delivery projects and strong demand for construction services [78] - The company expects its rate base to grow between 6% and 7% compounded annually over the next five years, driven by investments in system infrastructure upgrades [32] - Management noted that inflationary pressures have impacted margins but are being offset by price increases across product lines [9][35] Other Important Information - The spin-off of Knife River is expected to be completed on May 31, with stockholders receiving one share of Knife River stock for every four shares of MDU Resources stock owned [15] - The Board of Directors declared a quarterly dividend of $0.224 per share, unchanged from the previous quarter, payable on July 1 [16] Q&A Session Summary Question: What drove the light volumes in ready-mix concrete? - Management indicated that weather had a significant impact, with record snowfalls and rain affecting operations, along with the sale of the Beaumont operations and a softening residential market [53] Question: What is the status of the strategic review of the construction services business? - Management confirmed that the review is expected to be completed in the second quarter of 2023, with no conclusions drawn yet [42] Question: Can you provide details on the weather impact on contracting services? - Management noted that California's heavy rain led to a significant loss of operational days, but they expect to benefit from flood restoration and storm repair work [65] Question: What is the backlog status and margin outlook? - The company reported a record backlog of $959 million, with no cancellations of backlog projects, and expects margins to improve as inflationary pressures are addressed [66][68]

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

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

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