MDU Resources (MDU)2025-02-20 19:35Company 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 347.6 million in 2023[45]. - The natural gas distribution operations served 1,065,593 customers across eight states, with total revenues of 1,212.3 million in 2023[74]. - Residential customer revenues decreased from 651.8 million in 2024, while commercial revenues also saw a decline from 400.8 million[74]. - Transportation and other revenues for natural gas distribution operations increased to 75.3 million in 2023[74]. - The total retail electric revenues for 2024 were 347.6 million in 2023, with residential customers generating 13.1 million, 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 1.5 billion as of December 31, 2024[42]. - The natural gas distribution operations' net plant investment was 2.0 billion as of December 31, 2024[73]. - WBI Energy Transmission's net plant investment was 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].