Financial Data and Key Metrics Changes - The company reported income from continuing operations of $82.5 million or $0.40 per share for Q1 2025, a 10.4% increase compared to the same period last year [4] - First quarter earnings were $82 million or $0.40 per diluted share, compared to $100.9 million or $0.49 per diluted share in Q1 2024 [12] - The natural gas utility segment reported earnings of $44.7 million, an 11.5% increase from $40.1 million in Q1 2024 [14] Business Line Data and Key Metrics Changes - The electric utility segment reported earnings of $15 million, down from $17.9 million in the same period last year, despite a 25% increase in retail electric volumes [12][39] - The pipeline segment achieved record first quarter earnings of $17.2 million, up from $15.1 million in Q1 2024, driven by growth projects and increased demand for services [9][15] Market Data and Key Metrics Changes - The utility experienced a 1.4% combined retail customer growth compared to a year ago, aligning with the projected annual growth rate of 1% to 2% [5] - The company signed electric service agreements for 580 megawatts of data center load, with 180 megawatts currently online and an additional 100 megawatts expected to come online later this year [7] Company Strategy and Development Direction - The company is focused on a core strategy emphasizing customer and community engagement, operational excellence, and employee-driven initiatives, with a capital investment plan of $3.1 billion over the next five years [11] - The company anticipates a long-term EPS growth rate of 6% to 8% while targeting a 60% to 70% annual dividend payout ratio [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the Bakken region, highlighting the increasing gas-to-oil ratio and the need for takeaway capacity [22][24] - The company remains committed to wildfire prevention and has seen legislative support in three of its operating states, which will help limit liability and enhance mitigation efforts [6][58] Other Important Information - The company plans to reestablish an ATM program to meet future equity needs as part of its capital investment strategy [16] - The company is affirming its earnings per share guidance in the range of $0.88 to $0.98 for the full year [10] Q&A Session Summary Question: Are the tariffs from large customers not accretive for new resources? - Management indicated that the current capital-light strategy for data centers is beneficial, as it allows for shared costs with large customers, which in turn benefits retail customers [18][19] Question: How might disruptions in the Bakken affect North Dakota? - Management believes in the long-term viability of the Bakken, noting that while oil prices fluctuate, the increasing gas production will provide benefits for the pipeline business and utility customers [22][24] Question: How does the company view housing starts in relation to economic sensitivity? - Management noted that customer growth has remained stable within the 1% to 2% range, even during economic fluctuations, with Idaho being a particularly strong growth area [28][30] Question: What are the next steps for the Bakken East project? - Management stated that conversations with customers are ongoing, and they are encouraged by the feedback received, but further steps will depend on route design and customer needs [48][49] Question: How will recent wildfire legislation impact mitigation plans? - Management indicated that the legislation will help formalize existing mitigation plans and limit liability, while prevention remains the top priority [58][59] Question: What is the anticipated size of the ATM program? - Management has not yet determined the size of the ATM program but plans to size it appropriately to meet future needs [60] Question: What is the starting point for the long-term growth rate? - Management clarified that the long-term growth rate guidance is based on the adjusted 2024 number or the 2025 range provided earlier this year [63]

MDU Resources Group (MDU) Q1 2025 Earnings Call May 08, 2025 02:00 PM ET Speaker0 my name is Inna, and I will be your conference facilitator. At this time, I would like to welcome everyone to the MDU Resources Group twenty twenty five First Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer period. The webcast can be accessed at ww.mdu.com under the Investors heading. Select Events and Presentations a ...