MDU Resources Reports Solid Q2 Earnings, Updates 2024 Guidance

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].