MDU Resources Group Announces Increased Capital Investment Plan for 2025-2029
MDU Resources Group announced a $3.1 billion capital investment plan for 2025-2029, representing a 15% increase from the previous 2024-2028 plan. The company will increase investments in electric and natural gas distribution segments by 47% compared to 2020-2024, focusing on infrastructure modernization and customer base growth of 1-2% annually. The combined rate base for electric and natural gas distribution is expected to grow 7-8% annually. Due to the expanded capital program, equity issuance is now anticipated in 2026, earlier than previously projected for 2027. The company maintains its long-term EPS growth target of 6-8%.
MDU Resources Group ha annunciato un piano di investimento capitale di 3,1 miliardi di dollari per il periodo 2025-2029, che rappresenta un incremento del 15% rispetto al precedente piano 2024-2028. L'azienda aumenterà gli investimenti nei segmenti di distribuzione elettrica e di gas naturale del 47% rispetto al periodo 2020-2024, concentrandosi sulla modernizzazione delle infrastrutture e sulla crescita della clientela del 1-2% annualmente. Si prevede che la base tariffaria combinata per la distribuzione elettrica e del gas naturale cresca del 7-8% all'anno. A causa dell'espansione del programma capitale, l'emissione di azioni è ora prevista nel 2026, prima rispetto alla proiezione precedente per il 2027. L'azienda mantiene il suo obiettivo di crescita del EPS a lungo termine del 6-8%.
MDU Resources Group anunció un plan de inversión de capital de $3.1 mil millones para 2025-2029, lo que representa un aumento del 15% con respecto al anterior plan 2024-2028. La empresa aumentará las inversiones en los segmentos de distribución eléctrica y de gas natural en un 47% en comparación con 2020-2024, centrándose en la modernización de la infraestructura y el crecimiento de la base de clientes del 1-2% anual. Se espera que la base tarifaria combinada de distribución eléctrica y de gas natural crezca entre un 7-8% anualmente. Debido al programa de capital ampliado, se anticipa la emisión de acciones para 2026, antes de lo proyectado previamente para 2027. La empresa mantiene su objetivo de crecimiento del EPS a largo plazo del 6-8%.
MDU Resources Group는 2025-2029년 기간 동안 31억 달러의 자본 투자 계획을 발표했으며, 이는 이전 2024-2028 계획에 비해 15% 증가한 수치입니다. 회사는 2020-2024년에 비해 전기 및 천연가스 유통 분야에 대한 투자를 47% 증가시킬 예정이며, 인프라 현대화와 연간 1-2%의 고객 기반 증가에 집중할 것입니다. 전기 및 천연가스 유통의 결합 요금 기반은 연간 7-8% 성장할 것으로 예상됩니다. 확장된 자본 프로그램으로 인해 주식 발행은 2027년보다 앞서 2026년에 이루어질 것으로 예상됩니다. 회사는 장기 EPS 성장 목표인 6-8%를 유지합니다.
MDU Resources Group a annoncé un plan d'investissement en capital de 3,1 milliards de dollars pour la période 2025-2029, représentant une augmentation de 15 % par rapport au plan précédent 2024-2028. L'entreprise augmentera ses investissements dans les segments de distribution électrique et de gaz naturel de 47 % par rapport à 2020-2024, en se concentrant sur la modernisation de l'infrastructure et la croissance de sa clientèle de 1 à 2 % par an. La base tarifaire combinée pour la distribution électrique et de gaz naturel devrait croître de 7 à 8 % par an. En raison du programme de capital élargi, l'émission d'actions est maintenant prévue pour 2026, plus tôt que prévu pour 2027. L'entreprise maintient son objectif de croissance du BPA à long terme de 6 à 8 %.
MDU Resources Group hat einen Investitionsplan in Höhe von 3,1 Milliarden Dollar für den Zeitraum 2025-2029 angekündigt, was einem Anstieg von 15% im Vergleich zum vorherigen Plan 2024-2028 entspricht. Das Unternehmen wird die Investitionen in die Segmente der elektrischen und natürlichen Gasverteilung um 47% im Vergleich zu 2020-2024 erhöhen und sich auf die Modernisierung der Infrastruktur und ein jährliches Kundenwachstum von 1-2% konzentrieren. Die kombinierte Regelungsebene für die elektrische und natürliche Gasverteilung wird voraussichtlich um 7-8% jährlich wachsen. Aufgrund des erweiterten Kapitalprogramms wird jetzt eine Eigenkapitalemission für 2026 erwartet, früher als zuvor für 2027 prognostiziert. Das Unternehmen hält an seinem langfristigen EPS-Wachstumsziel von 6-8% fest.
- 15% increase in capital investment plan to $3.1 billion for 2025-2029
- 47% increase in electric and natural gas distribution investments
- Expected customer base growth of 1-2% annually
- Combined rate base growth projected at 7-8% annually
- Maintained long-term EPS growth target of 6-8%
- Equity issuance moved forward to 2026 from 2027, potentially diluting shareholders
Insights
The
The earlier need for equity issuance in 2026 indicates more aggressive expansion but could lead to near-term dilution for existing shareholders. However, the maintained
The reduced pipeline segment allocation (
This capital plan positions MDU strategically in the evolving utilities landscape. The substantial investment in electric transmission and natural gas infrastructure addresses critical modernization needs while preparing for future demand growth. The focus on regulated utilities infrastructure is particularly timely given increasing grid reliability concerns and regulatory support for modernization initiatives.
The shift toward electric and natural gas distribution over pipeline operations aligns with industry trends toward cleaner energy transition and grid resilience. The planned infrastructure upgrades will enhance system reliability and support potential renewable energy integration, though specific renewable projects aren't detailed in the plan.
"Our planned
Capital Expenditures | ||||||
Forecast | Actual + 2024 | Forecast | ||||
2024 | 2025 | 2026 | 2027 | 2020-2024 | 2025-2029 | |
(in millions) | ||||||
Electric | ||||||
Natural Gas Distribution | 303 | 310 | 258 | 293 | 1,170 | 1,410 |
Pipeline | 128 | 69 | 59 | 95 | 607 | 473 |
Total* | ||||||
*Excludes "Other" category | ||||||
MDU Resources plans to increase investments in its electric and natural gas distribution segments by
The combined rate base for the electric and natural gas distribution segments is expected to grow
MDU Resources' planned capital investments over the next five years at the pipeline business will continue to support customer growth and the completion of a number of in-progress projects.
MDU Resources continually reviews its capital program and communicates modifications as needed. With the increase in the Company's capital program, the need for equity issuance to support growth is now anticipated in 2026, earlier than the previously projected 2027. The company remains committed to a long-term EPS growth target of
Forward-Looking Statements
This 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 MDU Resources anticipates will or may occur in the future, including but not limited to capital investments, equity capital market raises and EPS growth targets, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in MDU Resources' filings with the U.S. Securities and Exchange Commission (the "SEC"). These forward-looking statements are based largely on MDU Resources' expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond its control. For additional discussion regarding risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in MDU Resources' most recent Annual Report on Form 10-K and subsequent filings with the SEC. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update the forward-looking statements, whether due to new information, future events, or otherwise.
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, MDU Resources has grown to serve approximately 1.19 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 investor@mduresources.com.
Investor Contact: Brent Miller, assistant treasurer, 701-530-1730
Media Contact: Byron Pfordte, manager of integrated communications, 208-377-6050
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SOURCE MDU Resources Group, Inc.
FAQ
What is MDU Resources' capital investment plan for 2025-2029?
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When does MDU plan to issue new equity according to the 2025-2029 plan?
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