• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    MDU Resources Reports Strong Performance; Initiates Guidance for 2025

    2/6/25 8:30:00 AM ET
    $MDU
    Mining & Quarrying of Nonmetallic Minerals (No Fuels)
    Industrials
    Get the next $MDU alert in real time by email
    • Net income of $281.1 million.
    • Regulated energy delivery earnings totaled $189.7 million, 13.6% increase year-over-year.
    • Record annual pipeline transportation volumes, up 8.1% year-over-year.
    • Utility rate base grew 6.8% year-over-year.
    • 2025 guidance: earnings per share in the range of $0.88 to $0.98.

    BISMARCK, N.D., Feb. 6, 2025 /PRNewswire/ -- MDU Resources Group Inc. (NYSE:MDU) today announced its financial results for 2024, showcasing strong year-over-year regulated growth. Key infrastructure projects and regulatory rate relief drove robust performance, positioning the company for continued success as a premier regulated energy delivery business following the successful spinoff of Everus Construction Group on Oct. 31, 2024.

    MDU Resources logo

    "MDU Resources delivered exceptional results in 2024, underscoring the strength of our employees, strategic investments and continued focus on operational excellence," said Nicole A. Kivisto, president and CEO of MDU Resources. "The growth in our regulated businesses is evidenced by our record annual transportation volumes, effective regulatory outcomes, and strong customer growth."

    The following summarizes the company's year-end results for the twelve months ended Dec. 31:



    2024

    2023



    (In millions, except per share amounts)

    Net income

    $                         281.1

    $                         414.7

    Earnings per share, diluted

    $                           1.37

    $                           2.03







    Income from continuing operations1

    $                         181.1

    $                         330.1

    Earnings per share from continuing operations, diluted1

    $                           0.88

    $                           1.62







    Adjusted income from continuing operations2,3

    $                         184.4

    $                         150.8

    Adjusted earnings per share from continuing operations, diluted2,3

    $                           0.90

    $                           0.74







    Regulated energy delivery earnings

    $                         189.7

    $                         167.0

    1 Includes the gain of $186.6 million on the tax-free exchange of the retained shares of Knife River in the fourth quarter 2023. MDU Resources has reported Knife River's and Everus' results and the transaction costs and certain interest expenses associated with the spinoffs as discontinued operations, and MDU Resources' prior period results have been restated to reflect the spinoffs.

    2 Adjusted income from continuing operations excludes the gain on the tax-free exchange of the retained shares of Knife River as well as costs associated with MDU Resources' strategic initiatives which did not meet the criteria for discontinued operations.

    3Adjusted income from continuing operations and adjusted earnings per share from continuing operations are non-GAAP financial measures. Additional explanation is provided in the "Non-GAAP Financial Measures" section of this news release.

    "As we look to 2025 and beyond, MDU Resources is committed to further strengthening its position as a leading regulated energy delivery business," Kivisto added. "Our new vision, energizing lives for a better tomorrow, sets our sights on sustained growth and building stockholder value while ensuring we continue to meet the evolving needs of the communities we serve."

    Electric Utility Segment

    • Electric utility earnings up 4.5% year-over-year, totaling $74.8 million.
    • Rate relief in North Dakota, South Dakota and Montana contributed $7.1 million in additional revenue.

    The electric utility segment achieved solid growth in 2024, supported by rate relief. Gains were partially offset by lower volumes from the majority of customers, mainly from cooler weather during typically warm months, and higher operations and maintenance expense.

    Natural Gas Distribution Segment

    • Earnings of $46.9 million, a slight year-over-year decrease, primarily due to higher operations and maintenance and depreciation and amortization expenses.
    • Benefited from rate relief primarily from North Dakota and South Dakota regulatory actions, contributing $14.1 million in revenue.

    The natural gas distribution segment maintained stable performance, despite some higher expenses. Rate relief actions and customer growth contributed to consistent performance.

    Regulatory Update

    • On Nov. 7, 2024, the North Dakota Public Service Commission approved an all-party settlement reflecting an annual revenue increase of $9.4 million, effective Dec. 1, 2024, stemming from a general rate case the utility filed on Nov. 1, 2023, requesting $11.6 million in annual revenue.
    • On Dec. 11, 2024, the utility filed a negotiated settlement agreement with the Washington Utilities and Transportation Commission relating to a multi-year general rate case filed March 29, 2024. The agreement calls for an annual revenue increase of $29.8 million effective March 1, 2025, and $10.8 million effective March 1, 2026.
    • On Jan. 14, 2025, the utility was granted interim rate relief of $7.7 million by the Montana Public Service Commission for a general rate case filed July 15, 2024, requesting $9.4 million in annual revenue. The interim rate is effective Feb. 1, 2025.

    Pipeline Segment

    • Record earnings up 45.0% year-over-year, totaling $68.0 million.
    • Record annual transportation volumes in 2024 due to new projects placed in service in late 2023 and throughout 2024.
    • Storage-related revenue grew by $7.1 million in 2024, reflecting continued strong demand for natural gas storage services.

    The pipeline segment delivered record annual results in 2024, driven by strong transportation and storage revenue from the successful execution of several strategic expansion projects and new Federal Energy Regulatory Commission approved rates effective Aug. 1, 2023. The business also benefited from non-recurring items, including proceeds received from a customer settlement that was recorded in other income and a decrease in the company's effective state income tax rate. Earnings were partially offset by higher operations and maintenance, depreciation and amortization, and interest expenses.

    The pipeline segment continues to execute on its growth strategy with several projects completed in 2024 and additional projects in various stages of development, including:

    • Purchase of a 28-mile natural gas pipeline lateral in northwestern North Dakota which closed on Nov. 1, 2024.
    • The Wahpeton Expansion project in eastern North Dakota which was placed in service on Dec. 1, 2024. The project adds approximately 20 million cubic feet of natural gas transportation capacity per day.
    • Signed agreements for an expansion project to serve a new electric generation facility in northwest North Dakota, with a targeted in-service date of late 2028.
    • Potential Bakken East Pipeline project, which could consist of 375 miles of pipeline construction from western North Dakota to the eastern part of the state. A non-binding open season for the project concluded on Jan. 31, 2025. The company is currently evaluating the results.

    Discontinued Operations and Adjusted Earnings

    On October 31, 2024, MDU Resources successfully completed the spinoff of Everus Construction Group, which became an independent, publicly traded company. MDU Resources has reported Everus' and Knife River's results and the transaction costs and certain interest expenses associated with the spinoffs as discontinued operations, and MDU Resources' prior period results have been restated to reflect the spinoffs.

    MDU Resources is reporting adjusted income from continuing operations and adjusted earnings per share that exclude the costs associated with its strategic initiatives which did not meet the criteria for discontinued operations. Adjusted income from continuing operations and adjusted earnings per share are non-GAAP measures. The "Non-GAAP Financial Measures" section of this news release explains the earnings adjustments. More information about MDU Resources' strategic initiatives can be found on the company's website at www.mdu.com.

    Guidance

    For 2025, MDU Resources expects earnings per share to be in the range of $0.88 to $0.98. In addition, the company has $533 million in capital investment planned for 2025.

    The expected 2025 results are based on these assumptions:

    • Normal weather, economic and operating conditions.
    • Continued availability of necessary equipment and materials.
    • Electric and natural gas customer growth continuing at a rate of 1%-2% annually.
    • No equity issuances.

    Corporate Strategy

    MDU Resources is committed to its CORE strategy, which prioritizes customers and communities, operational excellence, returns focused initiatives and an employee-driven culture. The company anticipates a capital investment of approximately $3.1 billion for 2025-2029, 7% to 8% long-term compound annual growth on utility rate base and customer growth of 1%-2% annually. Additionally, the company anticipates 6% to 8% long-term compound annual growth on earnings per share while targeting a 60% to 70% annual dividend payout ratio.

    Conference Call

    MDU Resources' management will discuss on a webcast at 2 p.m. ET today the company's 2024 results. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click on "Year-End 2024 Earnings Conference Call." A replay of the webcast will be available at the same location.

    About MDU Resources

    MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, provides essential products and services through its regulated electric and natural gas distribution and pipeline segments. Founded in 1924 as a small electric utility, MDU Resources has grown to serve more than 1.2 million customers across eight states and is celebrating its 100th anniversary. Learn more at www.mdu.com/100th-anniversary. The company operates in the Pacific Northwest and Midwest, constructing and operating infrastructure that delivers natural gas and electricity that energizes homes and businesses. For more information about MDU Resources, visit www.mdu.com or contact the Investor Relations Department at [email protected].

    Financial Contact: Brent Miller, treasurer, 701-530-1730

    Media Contact: Byron Pfordte, director of integrated communications, 208-377-6050

    Cautionary Note Regarding Forward-Looking Statements

    This news release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events or developments that the company anticipates will or may occur in the future, including, but not limited to, such things as estimates for growth, stockholder value creation, our CORE strategy, capital expenditures, financial guidance and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the company's filings with the U.S. Securities and Exchange Commission.

    While made in good faith, these forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. For additional discussion regarding risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in the company's most recent Annual Report on Form 10-K, and subsequent filings. Any changes in such assumptions or factors could produce significantly different results. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by applicable law, the company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. 

    Consolidated Statements of Income







    Three Months Ended

    Twelve Months Ended



    December 31,

    December 31,



    2024

    2023

    2024

    2023



    (In millions, except per share amounts)



    (Unaudited)

    Operating revenues

    $        535.5

    $        499.9

    $    1,758.0

    $    1,803.4

    Operating expenses:









    Operation and maintenance

    105.7

    99.9

    414.5

    407.1

    Purchased natural gas sold

    223.8

    200.1

    630.4

    743.0

    Electric fuel and purchased power

    32.2

    41.0

    141.2

    134.8

    Depreciation and amortization

    50.8

    48.8

    200.1

    190.4

    Taxes, other than income

    28.5

    22.2

    106.2

    103.1

    Total operating expenses

    441.0

    412.0

    1,492.4

    1,578.4

    Operating income

    94.5

    87.9

    265.6

    225.0

    Gain on tax-free exchange of retained shares in Knife River

    —

    16.4

    —

    186.6

    Other income

    10.1

    11.2

    41.4

    33.3

    Interest expense

    28.0

    28.6

    108.3

    104.6

    Income before income taxes

    76.6

    86.9

    198.7

    340.3

    Income tax expense (benefit)

    6.1

    (49.3)

    17.6

    10.2

    Income from continuing operations

    70.5

    136.2

    181.1

    330.1

    Discontinued operations, net of tax

    (15.3)

    34.5

    100.0

    84.6

    Net income

    $          55.2

    $        170.7

    $        281.1

    $        414.7











    Earnings per share – basic:









    Income from continuing operations

    $            .35

    $            .67

    $            .89

    $          1.62

    Discontinued operations, net of tax

    (.08)

    .17

    .49

    .42

    Earnings per share – basic

    $            .27

    $            .84

    $          1.38

    $          2.04

    Earnings per share – diluted:









    Income from continuing operations

    $            .34

    $            .67

    $            .88

    $          1.62

    Discontinued operations, net of tax

    (.07)

    .17

    .49

    .41

    Earnings per share – diluted

    $            .27

    $            .84

    $          1.37

    $          2.03

    Weighted average common shares outstanding – basic

    203.9

    203.7

    203.9

    203.6

    Weighted average common shares outstanding – diluted

    205.2

    204.1

    204.7

    203.9

     

    Selected Cash Flows Information1



    2024

    2023



    (In millions)

    Net cash provided by operating activities

    $        502.3

    $        332.6

    Net cash used in investing activities

    (552.7)

    (540.7)

    Net cash provided by financing activities

    40.3

    204.6

    Decrease in cash, cash equivalents and restricted cash

    (10.1)

    (3.5)

    Cash, cash equivalents and restricted cash - beginning of year

    77.0

    80.5

    Cash, cash equivalents and restricted cash - end of year

    $          66.9

    $          77.0

    1Includes cash flows from discontinued operations.





     

    Capital Expenditures











    Business Line

    2024

    Actual

    2025

    Estimated

    2026

    Estimated

    2027

    Estimated

    2025 - 2029

    Total

    Estimated







    (In millions)





    Electric

    $           116

    $            154

    $            494

    $            205

    $        1,178

    Natural gas distribution

    285

    310

    258

    293

    1,410

    Pipeline

    127

    69

    59

    95

    473

    Total capital expenditures1

    $           528

    $            533

    $            811

    $            593

    $        3,061













    1Excludes Other category.

    The capital program is subject to continued review and modification by the company. Actual expenditures may vary from the estimates due to changes in load growth, regulatory decisions and other factors.

    Non-GAAP Financial Measures

    The company, in addition to presenting its earnings in conformity with GAAP, has provided non-GAAP financial measures of adjusted income from continuing operations and adjusted earnings per share from continuing operations. The company defines adjusted income (loss) from continuing operations as income from continuing operations attributable to the company before any transaction-related impacts from strategic initiatives which did not meet the criteria for discontinued operations and adjusted earnings per share from continuing operations as earnings per share from continuing operations before any transaction-related impacts from strategic initiatives which did not meet the criteria for discontinued operations, including the 2023 realized gain and the associated fourth quarter reversal of income taxes previously recorded on retained shares in Knife River.

    The company believes these non-GAAP financial measures provide meaningful information to investors about the 2023 realized gain and the associated fourth quarter reversal of income taxes previously recorded on retained shares in Knife River and the costs associated with the company's strategic initiatives which did not meet the criteria for discontinued operations. The company's management uses the non-GAAP financial measures in conjunction with GAAP results when evaluating the company's operating results and calculating compensation packages. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare such financial measures with other companies' non-GAAP financial measures having the same or similar names. The presentation of this additional information is not meant to be considered a substitution for financial measures prepared in accordance with GAAP. The company strongly encourages investors to review the consolidated financial statements in their entirety and to not rely on any single financial measure.

    The following table provides a reconciliation of consolidated income from continuing operations to adjusted income from continuing operations and earnings per share from continuing operations to adjusted earnings per share from continuing operations:



    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023



    2024

    2023



    (In millions, except per share amounts)



    (Unaudited)

    Net income

    $          55.2

    $        170.7



    $        281.1

    $        414.7

    Discontinued operations, net of tax

    $        (15.3)

    $          34.5



    $        100.0

    $          84.6

    Income from continuing operations1

    $          70.5

    $        136.2



    $        181.1

    $        330.1

    Adjustments:











    Less:  Gain on tax-free exchange of retained shares in Knife River

    —

    16.4



    —

    186.6

    Less:  Reversal of previously recorded income taxes associated with the retained shares in Knife River

    —

    56.6



    —

    —

    Costs attributable to strategic initiatives, net of tax1

    —

    .8



    3.3

    7.3

    Adjusted income from continuing operations

    $          70.5

    $          64.0



    $        184.4

    $        150.8













    Earnings per share reconciliation - diluted











    Earnings per share from continuing operations

    $            .34

    $            .67



    $            .88

    $          1.62

    Adjustments:











    Less:  Earnings per share attributable to gain on tax-free exchange of retained shares in Knife River

    —

    .08



    —

    .91

    Less:  Earnings per share attributable to the reversal of previously recorded income tax associated with the retained shares in Knife River

    —

    .28



    —

    —

    Loss per share attributable to strategic initiative costs1

    —

    —



    .02

    .03

    Adjusted earnings per share from continuing operations

    $            .34

    $            .31



    $            .90

    $            .74

    1 Income from continuing operations includes costs attributable to strategic initiatives which did not meet the criteria for discontinued operations in 2024 of $4.4 million, net of tax of $1.1 million for the year. Costs attributable to strategic initiatives which did not meet the criteria for discontinued operations in 2023 of $1.1 million, net of tax of $0.3 million for the fourth quarter and $9.7 million, net of tax of $2.4 million for the year. Certain strategic initiative costs associated with the Knife River and Everus separations are reflected in discontinued operations. 

     

    Electric

    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023

    Variance



    2024

    2023

    Variance



    (In millions)

    Operating revenues1,2

    $       99.0

    $     106.3

    (7) %



    $     414.5

    $     401.2

    3 %

    Operating expenses:















    Electric fuel and purchased power1

    32.2

    41.0

    (21) %



    141.2

    134.8

    5 %

    Operation and maintenance

    24.9

    24.2

    3 %



    95.0

    92.7

    2 %

    Depreciation and amortization

    16.8

    16.3

    3 %



    66.5

    64.2

    4 %

    Taxes, other than income

    4.4

    3.4

    29 %



    17.6

    16.7

    5 %

    Total operating expenses

    78.3

    84.9

    (8) %



    320.3

    308.4

    4 %

    Operating income

    20.7

    21.4

    (3) %



    94.2

    92.8

    2 %

    Other income

    2.8

    2.4

    17 %



    8.2

    5.8

    41 %

    Interest expense

    7.7

    7.6

    1 %



    30.0

    28.0

    7 %

    Income before taxes

    15.8

    16.2

    (2) %



    72.4

    70.6

    3 %

    Income tax benefit2

    (1.3)

    (1.5)

    (13) %



    (2.4)

    (1.0)

    140 %

    Net income

    $       17.1

    $       17.7

    (3) %



    $       74.8

    $       71.6

    4 %

     

    Operating Statistics

    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023



    2024

    2023

    Revenues (millions)1,2











    Retail sales:











    Residential

    $          33.1

    $          33.7



    $        139.9

    $        134.1

    Commercial

    40.1

    45.1



    165.8

    164.1

    Industrial

    9.9

    11.2



    42.3

    42.3

    Other

    1.8

    1.9



    7.8

    7.1



    84.9

    91.9



    355.8

    347.6

    Other

    14.1

    14.4



    58.7

    53.6



    $          99.0

    $        106.3



    $        414.5

    $        401.2

    Volumes (million kWh)











    Retail sales:











    Residential

    291.0

    280.9



    1,159.5

    1,180.2

    Commercial

    711.6

    730.6



    2,474.5

    2,350.5

    Industrial

    134.2

    148.0



    528.9

    583.7

    Other

    20.5

    20.3



    81.6

    81.8



    1,157.3

    1,179.8



    4,244.5

    4,196.2

    Average cost of electric fuel and purchased power per kWh

    $          .021

    $          .027



    $          .025

    $          .024

    The previous tables reflect items that are passed through to customers resulting in minimal impact to earnings. These items include:

    1Electric fuel and purchased power costs, which impact both operating revenues and electric fuel and purchased power.

    2Production tax credits, which impact income tax benefit and operating revenues.

    The electric business reported net income of $17.1 million for the fourth quarter of 2024, compared to $17.7 million for the same period in 2023. This decrease was largely the result of lower investment returns on nonqualified benefit plans, higher operation and maintenance expense, primarily payroll-related costs, and higher depreciation and amortization expense, primarily due to increased asset additions. The decrease in net income was partially offset by increased retail sales revenue.

    For the full year, the electric business reported net income of $74.8 million, compared to $71.6 million in 2023. This increase was primarily the result of higher retail sales revenue due to rate relief in North Dakota, South Dakota and Montana. Lower volumes from the majority of customers, primarily due to cooler weather in the second quarter, and higher operation and maintenance expense, primarily contract services costs, partially offset the increases.

    Natural Gas Distribution

    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023

    Variance



    2024

    2023

    Variance



    (In millions)

    Operating revenues1,2

    $     406.5

    $     367.8

    11 %



    $  1,201.1

    $  1,287.5

    (7) %

    Operating expenses:















    Purchased natural gas sold1

    249.7

    224.7

    11 %



    699.3

    805.1

    (13) %

    Operation and maintenance

    62.2

    54.4

    14 %



    231.2

    219.7

    5 %

    Depreciation and amortization

    25.9

    24.8

    4 %



    102.0

    95.3

    7 %

    Taxes, other than income2

    20.9

    17.4

    20 %



    76.0

    75.2

    1 %

    Total operating expenses

    358.7

    321.3

    12 %



    1,108.5

    1,195.3

    (7) %

    Operating income

    47.8

    46.5

    3 %



    92.6

    92.2

    — %

    Other income

    6.0

    6.4

    (6) %



    25.5

    20.8

    23 %

    Interest expense

    16.3

    15.4

    6 %



    63.2

    57.6

    10 %

    Income before taxes

    37.5

    37.5

    — %



    54.9

    55.4

    (1) %

    Income tax expense

    8.1

    7.0

    16 %



    8.0

    6.9

    16 %

    Net income

    $       29.4

    $       30.5

    (4) %



    $       46.9

    $       48.5

    (3) %

     

    Operating Statistics

    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023



    2024

    2023

    Revenues (millions)1,2











    Retail Sales:











    Residential

    $        217.1

    $        209.9



    $        651.8

    $        726.1

    Commercial

    135.8

    126.6



    400.8

    441.2

    Industrial

    11.8

    11.9



    42.7

    45.0



    364.7

    348.4



    1,095.3

    1,212.3

    Transportation and other

    41.8

    19.4



    105.8

    75.2



    $        406.5

    $        367.8



    $    1,201.1

    $    1,287.5

    Volumes (MMdk)











    Retail sales:











    Residential

    23.8

    22.7



    67.2

    69.3

    Commercial

    16.1

    15.4



    46.9

    47.9

    Industrial

    1.5

    1.6



    5.4

    5.4



    41.4

    39.7



    119.5

    122.6

    Transportation sales:











    Commercial

    .6

    .5



    1.9

    1.9

    Industrial

    51.0

    52.5



    192.6

    188.4



    51.6

    53.0



    194.5

    190.3

    Total throughput

    93.0

    92.7



    314.0

    312.9

    Average cost of natural gas per dk

    $          6.04

    $          5.65



    $          5.85

    $          6.57

    The previous tables reflect items that are passed through to customers resulting in minimal impact to earnings. These items include:

    1Natural gas costs, which impact operating revenues and purchased natural gas sold.

    2Revenue-based taxes that impact both operating revenues and taxes, other than income.

    The natural gas distribution business reported net income of $29.4 million in the fourth quarter of 2024, compared to $30.5 million for the same period in 2023. The decrease was largely the result of higher operation and maintenance expense, primarily higher payroll-related costs and higher contract service costs. Also decreasing net income were lower investment returns on nonqualified benefit plans. These decreases were partially offset by higher retail sales revenue, primarily due to rate relief in North Dakota and South Dakota. The business also experienced a 4.0% increase in retail sales volumes, primarily to residential and commercial customer classes, which was partially offset by weather normalization and decoupling mechanisms.

    For the full year, the natural gas distribution business reported net income of $46.9 million, compared to $48.5 million in 2023. The decrease was largely the result of higher operation and maintenance expense, primarily higher contract service costs, higher payroll-related costs, and higher software expenses. Also decreasing net income was higher depreciation and amortization expense, primarily due to increased asset additions. These decreases were partially offset by higher retail sales revenue, primarily due to rate relief in North Dakota and South Dakota.

    Pipeline

    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023

    Variance



    2024

    2023

    Variance



    (In millions)

    Operating revenues

    $       56.1

    $       50.7

    11 %



    $     211.8

    $     177.6

    19 %

    Operating expenses:















    Operation and maintenance

    19.0

    18.2

    4 %



    75.7

    70.8

    7 %

    Depreciation and amortization

    7.6

    6.8

    12 %



    29.4

    26.8

    10 %

    Taxes, other than income

    3.1

    1.2

    158 %



    12.2

    10.8

    13 %

    Total operating expenses

    29.7

    26.2

    13 %



    117.3

    108.4

    8 %

    Operating income

    26.4

    24.5

    8 %



    94.5

    69.2

    37 %

    Other income

    1.2

    1.4

    (14) %



    6.5

    3.9

    67 %

    Interest expense

    4.1

    3.7

    11 %



    15.5

    13.3

    17 %

    Income before taxes

    23.5

    22.2

    6 %



    85.5

    59.8

    43 %

    Income tax expense

    3.0

    4.2

    (29) %



    17.5

    12.4

    41 %

    Income from continuing operations

    20.5

    18.0

    14 %



    68.0

    47.4

    43 %

    Discontinued operations, net of tax1

    —

    —

    — %



    —

    (.5)

    (100) %

    Net income

    $       20.5

    $       18.0

    14 %



    $       68.0

    $       46.9

    45 %

    1Discontinued operations includes interest on debt facilities repaid in connection with the Knife River separation.

     

    Operating Statistics

    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023



    2024

    2023

    Transportation volumes (MMdk)

    149.7

    148.0



    613.2

    567.2

    Customer natural gas storage balance (MMdk):









    Beginning of period

    54.6

    42.8



    37.7

    21.2

    Net injection (withdrawal)

    (10.5)

    (5.1)



    6.4

    16.5

    End of period

    44.1

    37.7



    44.1

    37.7

    The pipeline business reported net income of $20.5 million in the fourth quarter of 2024, compared to $18.0 million for the same period in 2023. The increase was driven by higher transportation volumes, primarily from growth projects placed in service in November 2023 and throughout 2024. The business also benefited from a decrease in the company's effective state income tax rate. Higher storage-related revenue further drove the increase. The increase was offset in part by higher operation and maintenance expense, primarily attributable to higher materials and contract services. The business also incurred higher depreciation and amortization expense and property taxes due to growth projects placed in service as discussed earlier.

    For the full year, the pipeline business reported net income of $68.0 million, compared to $46.9 million in 2023. The earnings increase was driven by higher transportation volumes, primarily from growth projects placed in service in November 2023 and throughout 2024 and increased contracted volume commitments beginning February 2023 from the North Bakken Expansion project. Higher storage-related revenue and a full year of new  transportation and storage service rates in 2024 further drove the increase. The business also benefited from proceeds received from a customer settlement that was recorded in other income and a decrease in the company's effective state income tax rate. The increase was offset in part by higher operation and maintenance expense primarily attributable to payroll-related costs and higher materials, contract services and pipeline safety fees. The business incurred higher depreciation and amortization expense due to growth projects placed in service as discussed earlier, which was partially offset by fully depreciated assets. The business also incurred higher interest expense largely as a result of higher debt balances and higher property taxes in Montana and North Dakota.

    Other

    Three Months Ended



    Twelve Months Ended



    December 31,



    December 31,



    2024

    2023

    Variance



    2024

    2023

    Variance



    (In millions)

    Operating revenues

    $            .1

    $           —

    100 %



    $            .2

    $            .2

    — %

    Operating expenses:















    Operation and maintenance

    (.1)

    3.4

    (103) %



    13.3

    24.9

    (47) %

    Depreciation and amortization

    .5

    .9

    (44) %



    2.2

    4.1

    (46) %

    Taxes, other than income

    .1

    .2

    (50) %



    .4

    .4

    — %

    Total operating expenses

    .5

    4.5

    (89) %



    15.9

    29.4

    (46) %

    Operating loss

    (.4)

    (4.5)

    (91) %



    (15.7)

    (29.2)

    (46) %

    Gain on tax-free exchange of retained shares in Knife River

    —

    16.4

    (100) %



    —

    186.6

    (100) %

    Other income

    2.6

    6.1

    (57) %



    16.6

    16.4

    1 %

    Interest expense

    2.4

    7.0

    (66) %



    15.0

    19.3

    (22) %

    Income (loss) before taxes

    (.2)

    11.0

    (102) %



    (14.1)

    154.5

    (109) %

    Income tax benefit

    (3.7)

    (59.0)

    (94) %



    (5.5)

    (8.1)

    (32) %

    Income (loss) from continuing operations1

    3.5

    70.0

    (95) %



    (8.6)

    162.6

    (105) %

    Discontinued operations, net of tax

    (15.3)

    34.5

    (144) %



    100.0

    85.1

    18 %

    Net income (loss)

    $       (11.8)

    $     104.5

    (111) %



    $       91.4

    $     247.7

    (63) %

















    Income (loss) from continuing operations1

    $          3.5

    $       70.0

    (95) %



    $        (8.6)

    $     162.6

    (105) %

    Adjustments:















    Less:  Gain on tax-free exchange of retained shares in Knife River

    —

    16.4

    (100) %



    —

    186.6

    (100) %

    Less:  Reversal of previously recorded income taxes associated with the retained shares in Knife River

    —

    56.6

    (100) %



    —

    —

    — %

    Costs attributable to strategic initiatives, net of tax1

    —

    .8

    (100) %



    3.3

    7.3

    (55) %

    Adjusted income (loss) from continuing operations

    $          3.5

    $        (2.2)

    259 %



    $        (5.3)

    $      (16.7)

    (68) %

    1 Income (loss) from continuing operations includes costs attributable to strategic initiatives which did not meet the criteria for discontinued operations in 2024 of $4.4 million, net of tax of $1.1 million for the year. Costs attributable to strategic initiatives which did not meet the criteria for discontinued operations in 2023 of $1.1 million, net of tax of $0.3 million for the fourth quarter and $9.7 million, net of tax of $2.4 million for the year. Certain strategic initiative costs associated with the Knife River and Everus separations are reflected in discontinued operations.

    The company completed the separations of Knife River on May 31, 2023, its former construction materials and contracting segment, and of Everus on October 31, 2024, its former construction services segment, into new independent publicly-traded companies. As a result of these separations, the historical results of operations for Knife River and Everus are shown in discontinued operations, net of tax, except for allocated general corporate overhead costs of the company which did not meet the criteria for discontinued operations. Also included in discontinued operations are certain strategic initiative costs associated with the separations of Knife River and Everus.

    During the fourth quarter of 2024, Other reported a net loss compared to net income in the same period in 2023. The decrease was primarily due to a decrease in results from discontinued operations, largely transaction related costs in 2024 and one month of Everus results compared to a full quarter in 2023. Other was also impacted by the absence of the company's 2023 $16.4 million gain on the tax-free exchange of its retained interest in Knife River and the associated reversal of income taxes previously recorded of $56.6 million. The company had recorded income tax expense on the unrealized gain and once it completed the tax-free monetization of the retained interest, the taxes were reversed. Partially offsetting the decrease in net income was lower operation and maintenance expense due to lower corporate overhead costs classified as continuing operations allocated to the construction services business in 2023, strategic initiative costs which did not meet the criteria for discontinued operations, as well as lower interest expense.

    For the full year, Other was impacted by the absence of the company's 2023 gain of $186.6 million related to the tax-free exchange of its retained shares in Knife River. Partially offsetting the decrease in net income was lower operation and maintenance expense, largely a result of corporate overhead costs classified as continuing operations allocated to the construction materials business in 2023, which are not included in Other in 2024, and lower strategic initiative costs. Other also benefited from lower interest expense due to lower borrowings associated with funding strategic initiatives.

    Also included in Other is insurance activity at the company's captive insurer, annualized income tax adjustments of the holding company primarily associated with corporate functions, and general and administrative costs and interest expense previously allocated to the exploration and production and refining businesses that did not meet the criteria for discontinued operations.

    Other Financial Data





    December 31, 2024



    (In millions, except per

    share amounts)



    (Unaudited)

    Book value per common share

    $                          13.19

    Market price per common share

    $                          18.02

    Market value as a percent of book value

    136.6 %

    Total assets

    $                          7,039

    Total equity

    $                          2,691

    Total debt

    $                          2,293

    Capitalization ratios:



    Total equity

    54.0 %

    Total debt

    46.0 %



    100.0 %

     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/mdu-resources-reports-strong-performance-initiates-guidance-for-2025-302370164.html

    SOURCE MDU Resources Group, Inc.

    Get the next $MDU alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $MDU

    DatePrice TargetRatingAnalyst
    1/8/2025$18.00Hold
    Jefferies
    11/5/2024$17.00Neutral → Buy
    BofA Securities
    11/4/2024$19.00Hold → Buy
    Siebert Williams Shank
    10/21/2024$30.00 → $31.00Buy → Neutral
    BofA Securities
    5/20/2024$30.00Hold → Buy
    Argus
    6/1/2023$22.00Underperform → Buy
    BofA Securities
    10/24/2022$30.00 → $26.00Neutral → Underperform
    BofA Securities
    8/5/2022$29.00 → $30.00Buy → Neutral
    BofA Securities
    More analyst ratings

    $MDU
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • MDU Resources Delivers Strong Start to 2025; Affirms Guidance

      Pipeline segment reports record first quarter earnings, up 13.9%Natural gas distribution earnings up 11.5%2025 guidance affirmed; earnings per share in the range of $0.88 to $0.98Strong start to the year supports company's transition to a pure-play regulated energy delivery businessBISMARCK, N.D., May 8, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:MDU) today announced its financial results for the first quarter of 2025, reporting solid performance across its regulated energy delivery segments and affirming full-year earnings per share guidance. "We delivered a strong

      5/8/25 8:30:00 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • MDU Resources to Webcast First Quarter 2025 Earnings Conference Call

      BISMARCK, N.D., April 17, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:MDU) will webcast its first quarter 2025 earnings conference call at 2 p.m. ET May 8. The company will release its first quarter results before U.S. financial markets open that day. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click "Q1 2025 Earnings Conference Call." After the conclusion of the webcast, a replay will be available at the same location. About MDU Resources MDU Resources Group Inc., a member of the S&P SmallCap 600 inde

      4/17/25 4:20:00 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • MDU Resources Announces Plans to Invest in Badger Wind Farm

      BISMARCK, N.D., Feb. 14, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:MDU) is pleased to announce that its subsidiary, Montana-Dakota Utilities Co. (MDU), has signed a purchase agreement to acquire a 49% ownership interest in the Badger Wind Farm. This acquisition represents 122.5 MW of the project's total 250 MW generation capacity. The purchase agreement is contingent on regulatory approval from the North Dakota Public Service Commission (NDPSC). MDU's 2024 Integrated Resource Plan (IRP) identified the need for additional generation capacity to meet future energy dem

      2/14/25 4:30:00 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials

    $MDU
    Financials

    Live finance-specific insights

    See more
    • MDU Resources Delivers Strong Start to 2025; Affirms Guidance

      Pipeline segment reports record first quarter earnings, up 13.9%Natural gas distribution earnings up 11.5%2025 guidance affirmed; earnings per share in the range of $0.88 to $0.98Strong start to the year supports company's transition to a pure-play regulated energy delivery businessBISMARCK, N.D., May 8, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:MDU) today announced its financial results for the first quarter of 2025, reporting solid performance across its regulated energy delivery segments and affirming full-year earnings per share guidance. "We delivered a strong

      5/8/25 8:30:00 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • MDU Resources to Webcast First Quarter 2025 Earnings Conference Call

      BISMARCK, N.D., April 17, 2025 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:MDU) will webcast its first quarter 2025 earnings conference call at 2 p.m. ET May 8. The company will release its first quarter results before U.S. financial markets open that day. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click "Q1 2025 Earnings Conference Call." After the conclusion of the webcast, a replay will be available at the same location. About MDU Resources MDU Resources Group Inc., a member of the S&P SmallCap 600 inde

      4/17/25 4:20:00 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • MDU Resources Announces Quarterly Dividend on Common Stock

      BISMARCK, N.D., Feb. 13, 2025 /PRNewswire/ -- MDU Resources Group, Inc.'s (NYSE:MDU) board of directors today declared a quarterly dividend on the company's common stock of 13.0 cents per share, unchanged from the previous quarter. The dividend is payable on April 1 to stockholders of record as of March 13, 2025. About MDU Resources Group, Inc.MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, provides essential products and services through its regulated electric and natural gas distribution and pipeline segments. Founded in 1924 as a small electric utility, M

      2/13/25 4:30:00 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials

    $MDU
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Director Durkin Marian M was granted 165 shares, increasing direct ownership by 5% to 3,572 units (SEC Form 4)

      4 - MDU RESOURCES GROUP INC (0000067716) (Issuer)

      4/1/25 5:25:25 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • Director Dosch Vernon A. was granted 1,650 shares, increasing direct ownership by 63% to 4,263 units (SEC Form 4)

      4 - MDU RESOURCES GROUP INC (0000067716) (Issuer)

      4/1/25 5:24:23 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • ChiefAccntg&RegAffairsOfficer Sievert Stephanie A covered exercise/tax liability with 9,506 shares and was granted 4,974 shares, decreasing direct ownership by 4% to 96,333 units (SEC Form 4)

      4 - MDU RESOURCES GROUP INC (0000067716) (Issuer)

      2/14/25 4:50:52 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials

    $MDU
    Insider Purchases

    Insider purchases reveal critical bullish sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Director Johnson Dennis W bought $499,200 worth of shares (30,000 units at $16.64), increasing direct ownership by 20% to 180,166 units (SEC Form 4)

      4 - MDU RESOURCES GROUP INC (0000067716) (Issuer)

      2/10/25 4:44:31 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • Johnson Rob L. bought $923,970 worth of Common Stock - 401 (36,291 units at $25.46) (SEC Form 4)

      4 - MDU RESOURCES GROUP INC (0000067716) (Issuer)

      5/8/24 4:44:47 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • Rosenthal Dale bought $8,456 worth of shares (375 units at $22.55), increasing direct ownership by 2% to 16,499 units (SEC Form 4)

      4 - MDU RESOURCES GROUP INC (0000067716) (Issuer)

      3/13/24 5:31:49 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials

    $MDU
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more
    • Jefferies initiated coverage on MDU Resources with a new price target

      Jefferies initiated coverage of MDU Resources with a rating of Hold and set a new price target of $18.00

      1/8/25 9:26:59 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • MDU Resources upgraded by BofA Securities with a new price target

      BofA Securities upgraded MDU Resources from Neutral to Buy and set a new price target of $17.00

      11/5/24 7:22:02 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • MDU Resources upgraded by Siebert Williams Shank with a new price target

      Siebert Williams Shank upgraded MDU Resources from Hold to Buy and set a new price target of $19.00

      11/4/24 8:26:06 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials

    $MDU
    SEC Filings

    See more
    • SEC Form 10-Q filed by MDU Resources Group Inc.

      10-Q - MDU RESOURCES GROUP INC (0000067716) (Filer)

      5/8/25 8:38:00 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • MDU Resources Group Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Regulation FD Disclosure, Financial Statements and Exhibits

      8-K - MDU RESOURCES GROUP INC (0000067716) (Filer)

      5/8/25 8:32:14 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • SEC Form DEFA14A filed by MDU Resources Group Inc.

      DEFA14A - MDU RESOURCES GROUP INC (0000067716) (Filer)

      4/3/25 8:19:26 AM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials

    $MDU
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • Amendment: SEC Form SC 13D/A filed by MDU Resources Group Inc.

      SC 13D/A - MDU RESOURCES GROUP INC (0000067716) (Subject)

      11/1/24 4:31:56 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • SEC Form SC 13D/A filed by MDU Resources Group Inc. (Amendment)

      SC 13D/A - MDU RESOURCES GROUP INC (0000067716) (Subject)

      3/18/24 5:02:52 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • SEC Form SC 13G/A filed by MDU Resources Group Inc. (Amendment)

      SC 13G/A - MDU RESOURCES GROUP INC (0000067716) (Subject)

      2/13/24 4:55:50 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials

    $MDU
    Leadership Updates

    Live Leadership Updates

    See more
    • MDU Resources Welcomes Vernon Dosch to Board of Directors

      BISMARCK, N.D., Nov. 14, 2024 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:MDU) today announced that its board of directors has elected Vernon A. Dosch as a director, effective Nov. 15, 2024. Dosch, a respected leader with more than 45 years of expertise in the electric utility and broadband industries, brings a deep commitment to community and industry advancement. "We are excited to welcome Vern to our board," said Dennis W. Johnson, chair of the board. "His dedication to industry innovation, community service, and proven ability to lead transformation initiatives in the

      11/14/24 4:30:00 PM ET
      $MDU
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • Everus Construction Group Set to Join S&P SmallCap 600

      NEW YORK, Oct. 29, 2024 /PRNewswire/ -- Everus Construction Group Inc. (NYSE:ECG) will be added to the S&P SmallCap 600 effective prior to the opening of trading on Friday, November 1, replacing Clearwater Paper Corp. (NYSE:CLW), which will be removed from the S&P SmallCap 600 effective prior to the opening of trading on Monday, November 4. S&P SmallCap 600 constituent MDU Resources Group Inc. (NYSE:MDU) is spinning off Everus Construction Group in a transaction expected to be completed on November 1. Following the spin-off, the parent company MDU Resources Group will remain in the S&P SmallCap 600 but will change its Global Industry Classification Standard (GICS) sector from Industrials to 

      10/29/24 5:57:00 PM ET
      $CLW
      $MDU
      $SPGI
      Paper
      Basic Materials
      Mining & Quarrying of Nonmetallic Minerals (No Fuels)
      Industrials
    • DocuSign Set to Join S&P MidCap 400 and MDU Resources Group to Join S&P SmallCap 600

      NEW YORK, Oct. 7, 2024 /PRNewswire/ -- DocuSign Inc. (NASD:DOCU) will replace MDU Resources Group Inc. (NYSE:MDU) in the S&P MidCap 400, and MDU Resources Group will replace Chuy's Holdings Inc. (NASD:CHUY) in the S&P SmallCap 600 effective prior to the opening of trading on Friday, October 11. S&P 500 constituent Darden Restaurants Inc. (NYSE:DRI) is acquiring Chuy's Holdings in a deal expected to be completed soon, pending final closing conditions. MDU Resources announced its intention to spin-off a company later this month. Following is a summary of the changes that will take place prior to the open of trading on the effective date: Effective Date Index Name       Action Company Name Ti

      10/7/24 6:06:00 PM ET
      $CHUY
      $DOCU
      $DRI
      $MDU
      Restaurants
      Consumer Discretionary
      Computer Software: Prepackaged Software
      Technology