MDU Resources' (MDU) systematic investments should further improve the reliability of services to help better serve the company's growing customer base. The company's focus on regulated energy delivery should boost overall performance. However, this Zacks Rank #3 (Hold) company faces risks related to aging infrastructure and seasonality of business operations. MDU's Tailwinds MDU is focused on safely meeting customer demand by upgrading and expanding its electric and natural gas infrastructure. MDU Resource ...

BISMARCK, N.D., Sept. 3, 2024 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) today announced the anticipated board of directors for Everus Construction Group, effective upon completion of the planned spinoff of the construction services subsidiary into an independent, publicly traded company. The spinoff is expected to be complete in late 2024. Everus' post-spinoff board is expected to consist of seven directors, including six independent directors. These individuals are anticipated to move from MDU ...

MDU Resources Group (MDU) announced that its board of directors has approved a 4% increase in its quarterly dividend rate. The company has paid uninterrupted dividends for 86 years. The new dividend rate will be 13 cents per share compared with the previous quarter's 12.5 cents, payable on Oct 1, 2024, to stockholders of record as of Sept 12. This increase resulted in an annualized dividend of 52 cents per share compared with the previous level of 50 cents. The board continues to target a long-term dividend ...

BISMARCK, N.D., Aug. 15, 2024 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) announced today that Michael S. Della Rocca and Marian M. Durkin have been appointed to the company's board of directors. Della Rocca, during his 35-year career, held a number of executive positions within the engineering and construction industry, including as chief executive, Americas, of AECOM. He also was a partner in consulting firm McKinsey & Company, where he provided clients with strategic counsel on capital projects ...

BISMARCK, N.D., Aug. 15, 2024 /PRNewswire/ -- The board of directors of MDU Resources Group, Inc. (NYSE: MDU) has increased the quarterly dividend on the company's common stock to 13 cents per share, for an annualized dividend of 52 cents per share. This represents a 4% increase over the previous quarterly dividend of 12.5 cents per share. The board continues to target a long-term dividend payout ratio of 60% to 70% of regulated energy delivery earnings. "MDU Resources remains committed to the transition to ...

MDU Resources Group Inc. (MDU) reported second-quarter 2024 operating earnings per share (EPS) of 32 cents, which increased 10.3% from the year-ago quarter's 29 cents. GAAP EPS was 30 cents compared with 64 cents in the prior-year period. Total Revenues Total operating revenues decreased 4% to $1.04 billion from $1.09 billion in the comparable period of 2023. Operating revenues in the electric, natural gas distribution and regulated pipeline totaled $340.5 million, up 0.2% from the prior-year quarter's figu ...

MDU Resources Group, Inc. (NYSE:MDU) Q2 2024 Earnings Conference Call August 8, 2024 2:00 PM ET Company Participants Jason Vollmer - Vice President, Chief Financial Officer & Treasurer Nicole Kivisto - President & Chief Executive Officer Stephanie Sievert - Vice President, Chief Accounting Officer & Controller Jeff Thiede - President & Chief Executive Officer of Everus Conference Call Participants Brent Thielman - D.A. Davidson Ryan Levine - Citi Operator Hello. My name is Jamie and I will be your conferenc ...

MDU RESOURCES Second Quarter Earnings Call August 8, 2024 MDU LISTED NYSE Forward-Looking Statement This presentation includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations and beliefs are based on reasonable assumptions, actual results may differ materially. For a discussion of factors that may cause actual results to differ, refer to Item 1A – Risk Factors in the company's most recent Form 10-K and ...

Financial Performance - Total operating revenues for the three months ended June 30, 2024, were $1,047.5 million, a decrease of 16.5% compared to $1,506.8 million for the same period in 2023[23]. - Operating income for the six months ended June 30, 2024, was $225.7 million, an increase of 12.8% from $200.6 million in the prior year[23]. - Net income for the three months ended June 30, 2024, was $60.4 million, down 53.8% from $130.7 million in the same period last year[23]. - Adjusted income from continuing operations for the three months ended June 30, 2024, was $65.2 million, compared to $60.0 million for the same period in 2023, reflecting a 3.3% increase[32]. - Earnings per share from continuing operations for the three months ended June 30, 2024, were $0.30, down from $0.72 in the same period last year, representing a decline of 58.3%[32]. - Operating revenues for the three months ended June 30, 2024, were $703.3 million, a decrease of 6% compared to $747.0 million for the same period in 2023[50]. - The company reported a total operating expense of $957.8 million for the three months ended June 30, 2024, a decrease of 5.1% from $1,009.1 million in the same period last year[23]. - The company experienced a 13% decrease in operation and maintenance costs for the six months ended June 30, 2024, totaling $1,115.7 million compared to $1,283.2 million in 2023[50]. - Interest expense increased by 74% to $3.3 million for the three months ended June 30, 2024, compared to $1.9 million in the same period of 2023[50]. - The company reported a 4% increase in gross profit for the six months ended June 30, 2024, totaling $163.3 million compared to $157.2 million in 2023[50]. Segment Performance - Pipeline segment achieved record second quarter earnings of $17.3 million, up approximately 99% from $8.7 million in Q2 2023[7]. - Utility earnings totaled $10.5 million, a decrease of $2.6 million compared to the previous year, impacted by cooler weather and higher operational expenses[4]. - Construction services segment reported earnings of $39.0 million, slightly up from $38.6 million in Q2 2023, with a record backlog of $2.4 billion[10]. - Net income for the electric business was $15.5 million in Q2 2024, down from $16.3 million in Q2 2023, reflecting a 5% decrease[39]. - The natural gas distribution business reported a seasonal loss of $5.0 million in Q2 2024, compared to a loss of $3.2 million in Q2 2023, primarily due to higher operation and maintenance expenses[43]. - EBITDA for the natural gas distribution business increased by $1.3 million in Q2 2024, driven by higher retail sales[44]. - The pipeline business reported operating revenues of $52.9 million in Q2 2024, a 26% increase from $42.1 million in Q2 2023[46]. - The pipeline business's net income rose to $17.3 million in Q2 2024, up 99% from $8.7 million in Q2 2023, attributed to higher transportation volumes and new service rates[47]. - The pipeline business's EBITDA increased by $12.3 million in Q2 2024, primarily from higher transportation and storage revenues[48]. - The construction services business reported a record net income of $39.0 million for the second quarter of 2024, up 1% from $38.6 million in the same quarter of 2023[53]. Revenue Guidance and Expectations - Updated construction services revenue guidance for 2024 is now $2.65 billion to $2.85 billion, down from the previous range of $2.9 billion to $3.1 billion[11]. - The company expects EBITDA for construction services to be in the range of $220 million to $240 million for 2024[13]. - The company expects EBITDA guidance for 2024 to range between $220.0 million and $240.0 million[35]. Operational Metrics - Total capital expenditures for 2024 are estimated at $625 million, with a total estimated expenditure of $2,776 million from 2024 to 2028[26]. - The total backlog at June 30, 2024, reached an all-time record of $2,403 million, with electrical and mechanical backlog up 34% year-over-year[54]. - Customer natural gas storage balance at the end of the period increased to 41.4 MMdk in Q2 2024 from 27.8 MMdk in Q2 2023[47]. Market and Shareholder Information - Book value per common share increased to $14.80 in Q2 2024 from $13.29 in Q2 2023[59]. - Market price per common share rose to $25.10 in Q2 2024, compared to $20.94 in Q2 2023[59]. - Total assets increased to $7,960 million in Q2 2024 from $7,685 million in Q2 2023[59]. - Total equity grew to $3,018 million in Q2 2024, up from $2,706 million in Q2 2023[59]. Strategic Initiatives - The company is working towards a tax-free spinoff of Everus Construction Group, expected to be finalized in late 2024[11]. - Strategic rate relief initiatives helped mitigate impacts from inflation and cooler weather, with temperatures being 37% cooler in Q2 2024 compared to Q2 2023[5]. - The utility filed for a natural gas rate case requesting an annual revenue increase of $9.4 million, or 11.1%, pending a decision[6]. Other Notable Information - The company completed the separation of Knife River on May 31, 2023, impacting financial results significantly[56]. - The absence of a $90.8 million unrealized gain from Knife River contributed to the decrease in net income for Q2 2024[57].

Core Insights - MDU Resources Group, Inc. reported solid second quarter earnings, with significant growth in pipeline and construction services segments, while utility earnings declined due to cooler weather and increased expenses [2][3]. Financial Performance - Pipeline segment achieved record second quarter earnings of $17.3 million, up approximately 99% from $8.7 million in the same period last year [9]. - Utility earnings totaled $10.5 million, down by $2.6 million from the previous year, impacted by lower volumes due to cooler weather and higher operational expenses [5][6]. - Construction services segment reported earnings of $39.0 million, slightly up from $38.6 million in the second quarter of 2023, with a record backlog of $2.4 billion [11][12]. Revenue and Guidance - Updated construction services revenue guidance for 2024 is projected to be between $2.65 billion and $2.85 billion, with higher margins expected compared to 2023 [12][16]. - Total operating revenues for the second quarter were $1.047 billion, down from $1.091 billion in the same quarter of 2023 [23]. Strategic Initiatives - The company is progressing towards the spinoff of Everus Construction Group, expected to be completed in late 2024, aiming to focus on regulated energy delivery [5][13]. - Strategic rate relief initiatives have been implemented to mitigate the impacts of inflation and cooler weather [6]. Operational Highlights - The pipeline segment benefitted from record transportation volumes and increased storage revenue, driven by new service rates effective from August 1, 2023 [10]. - The utility business is expanding infrastructure investments, which contributed to solid results despite adverse weather conditions [3][5]. Customer Growth and Infrastructure - Total retail customers increased by 1.5%, aligning with the company's growth projections of 1%-2% [7]. - The completion of the Heskett IV, an 88-megawatt simple-cycle combustion turbine, enhances the company's capacity to meet growing customer demand [7].