MDU Resources (US:MDU) Prnewswireยท2025-08-07 12:30Core Viewpoint - MDU Resources Group, Inc. reported second quarter financial results for 2025, highlighting sustained momentum in the pipeline segment and regulatory progress that supports the company's long-term value as a regulated energy delivery business [1][2]. Financial Performance - For the second quarter of 2025, net income was $13.7 million, a decrease from $60.4 million in the same period of 2024. Earnings per share (EPS) diluted were $0.07 compared to $0.30 in 2024 [2][21]. - Income from continuing operations was $14.1 million, down from $20.2 million year-over-year, with diluted EPS from continuing operations at $0.10, up from $0.07 [2][21]. - Operating revenues for the second quarter of 2025 were $351.2 million, compared to $344.5 million in 2024, while operating expenses increased to $320.8 million from $305.0 million [13][21]. Segment Performance Electric Utility Segment - The electric utility segment earned $10.4 million in Q2 2025, down from $15.5 million in Q2 2024, primarily due to increased operation and maintenance expenses [4][21]. - Higher payroll-related costs and expenses from a planned outage contributed to the increased costs, although these were partially offset by higher commercial sales volumes and rate relief in South Dakota [4][21]. Natural Gas Distribution Segment - The natural gas distribution segment reported a seasonal loss of $7.4 million in Q2 2025, compared to a loss of $5.0 million in 2024, driven by higher operation and maintenance expenses and unfavorable weather conditions [5][25]. - Operating revenues increased to $206.9 million in Q2 2025 from $201.5 million in 2024, with a notable increase in purchased natural gas sold [22][25]. Pipeline Segment - The pipeline segment reported earnings of $15.4 million in Q2 2025, down from $17.3 million in 2024, impacted by higher operation and maintenance expenses and the absence of a customer settlement from the previous year [8][26]. - Operating revenues for the pipeline segment increased to $56.3 million in Q2 2025 from $52.9 million in 2024, supported by higher transportation revenue from recent expansion projects [26]. Guidance and Strategic Outlook - The company narrowed its full-year earnings guidance to a range of $0.88 to $0.95 per share, reflecting midyear performance and weather impacts [6][9]. - Long-term EPS guidance remains unchanged, with an expected growth rate of 6%-8% [6][9]. Regulatory Updates - The company is actively pursuing regulatory approvals for various projects, including a General Rate Case in Wyoming requesting a $7.5 million annual increase, and applications for new projects in North Dakota and Idaho [7][22]. - Rate relief in Washington and Montana has partially offset seasonal losses in the natural gas distribution segment [5][25]. Capital Expenditures - Total capital expenditures for 2025 are estimated at $539 million, with significant investments planned in electric and natural gas distribution segments [18][22]. Other Financial Data - As of June 30, 2025, the company reported total assets of $6.946 billion and total equity of $2.732 billion, with a book value per common share of $13.37 [31]. - The market price per common share was $16.67, representing 124.7% of the book value [31].