MDU Resources Reports First Quarter 2026 Results; Progress on Proposed Bakken East Pipeline
Rhea-AI Summary
MDU Resources (NYSE: MDU) reported Q1 2026 consolidated net income of $80.8 million and diluted EPS of $0.39, with milder weather reducing results by about $0.03 per share. 2026 EPS guidance was affirmed at $0.93–$1.00. A binding open season for the proposed Bakken East Pipeline showed 1.4 Bcf/d of interest and project capex is now projected at $2.7–$3.2 billion, incremental to the company’s $3.1 billion forecast.
AI-generated analysis. Not financial advice.
Positive
- Consolidated net income of $80.8 million
- Diluted EPS of $0.39 for Q1 2026
- 2026 EPS guidance affirmed at $0.93–$1.00
- 1.4 Bcf/d binding interest for Bakken East Pipeline
- Projected Bakken East capex $2.7–$3.2 billion
Negative
- Weather headwind reduced EPS by approximately $0.03
- Electric segment volumes down from 10%–30% milder temperatures
- Pipeline segment impacted by lower interruptible storage withdrawals
News Market Reaction – MDU
On the day this news was published, MDU gained 0.72%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
While MDU is down 0.67%, peers are mixed: BKH up 0.27%, CPK up 0.03%, OGS down 0.54%, SR down 2.44%, NJR down 1.67%. Momentum scanner only flagged CTRI moving down, suggesting today’s action is company-specific rather than a broad regulated gas move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 05 | Knife River Q1 results | Positive | -0.3% | Reported Q1 2026 revenue growth, record backlog and higher adjusted EBITDA. |
| Feb 17 | Knife River FY25 results | Negative | -2.5% | Record Q4 growth but full-year net income declined and guidance framed cautiously. |
| Nov 06 | MDU Q3 2025 results | Positive | +4.7% | Stronger pipeline earnings, higher income and narrowed EPS guidance range. |
| Aug 07 | MDU Q2 2025 results | Negative | -6.7% | Net income fell sharply year over year and EPS guidance was narrowed. |
| Aug 05 | Knife River Q2 2025 results | Negative | +0.9% | Weather-hit quarter, lower net income and reduced EBITDA guidance despite record backlog. |
Earnings-related news has often seen mild negative or mixed price reactions, even when operational metrics were solid.
Recent results and guidance updates for MDU and former affiliate Knife River show a pattern of solid operational execution but generally modest or negative share reactions. MDU’s Q2 2025 update, with sharply lower net income and narrowed EPS guidance, saw the steepest drop. A more constructive reaction followed MDU’s Q3 2025 results and narrowed guidance. Knife River’s earnings have generally produced small downside moves despite growth metrics and record backlogs.
Historical Comparison
Across the last five earnings-related events, the average move was -0.78%, with several instances of muted or negative reactions despite operational progress, making any strong move on this report an outlier versus recent history.
MDU has repeatedly reaffirmed a 6–8% long-term EPS growth framework, with 2025 EPS of $0.93 and 2026 guidance of $0.93–$1.00, showing a consistent, modestly upward earnings trajectory.
Regulatory & Risk Context
MDU has an effective S-3ASR shelf filed on 2025-08-07, with at least 3 424B5 takedowns recorded. This structure provides flexibility to raise additional capital relatively quickly, which can support large projects and equity plans but also introduces potential dilution if further issuances occur.
Market Pulse Summary
This announcement highlights stable Q1 earnings, affirmed 2026 EPS guidance of $0.93–$1.00, and growing optionality from the proposed Bakken East Pipeline, backed by 1.4 Bcf/d of interest and a $50M annual firm commitment from North Dakota. Investors may track execution on rate cases, capital spending versus the existing $3.1B plan, and additional use of the effective S-3ASR for equity funding.
Key Terms
binding open season regulatory
precedent agreements regulatory
firm capacity commitment technical
FERC Section 7(c) application regulatory
System Safety and Integrity Rider regulatory
follow-on public offering financial
forward sale agreements financial
AI-generated analysis. Not financial advice.
- Strong open season interest for proposed Bakken East Pipeline Project
- Consolidated net income of
$80.8 million $0.39 - Milder weather unfavorably impacted results by approximately
$0.03 - 2026 guidance affirmed; earnings per share in the range of
$0.93 $1.00
During the quarter, a successful binding open season for the proposed Bakken East Pipeline Project concluded with approximately 1.4 billion cubic feet per day of submitted interest. Of that total, approximately
Recent investments, including Badger Wind Farm and the Minot Expansion Project, are delivering financial benefits and supporting customer demand, while emerging opportunities tied to data center growth across our service territory reinforces the long-term value of the company's infrastructure portfolio.
"We delivered a strong first quarter when accounting for the impact of warmer weather across our service territory," said Nicole A. Kivisto, president and CEO of MDU Resources. "Milder conditions reduced volumes, and normalization mechanisms in several of our states helped offset those impacts, demonstrating the strength of our regulated businesses. At the same time, rate relief as well as recent investments such as Badger Wind Farm and our pipeline expansions contributed positive results. Additionally, we continue to see encouraging demand trends, including continued interest from data center development and strong interest in our proposed Bakken East Pipeline Project."
The following summarizes the company's first quarter results for the three months ended March 31:
2026 | 2025 | |
Net income (in millions) | $ 80.8 | $ 82.0 |
Earnings per share, diluted | $ .39 | $ .40 |
"Our ability to deliver consistent results in a dynamic energy environment speaks to the strength and operational discipline of our teams," Kivisto added. "Our employees remain focused on safety, reliability and cost-effectiveness, enabling us to deliver long-term value to our customers and stockholders."
Electric Utility Segment
Benefits from Badger Wind Farm recovery, more than offset by impacts from milder weather
- Lower volumes due to
10% to30% milder temperatures across our service territory - Higher interest expense and depreciation largely related to Badger Wind Farm investment
- Higher retail revenue driven by renewable cost recovery and rate mechanisms associated with Badger Wind Farm
The electric segment earned
Regulatory Update:
Montana : Interim electric rates approved for an annual increase of$10.4 million Wyoming : General rate case settlement approved for an annual increase of$5.8 million North Dakota : General rate case filing is anticipated later this year
Natural Gas Distribution Segment
Lower volumes largely offset by weather normalization mechanisms and rate relief
- Lower retail and transportation volumes due to warmer weather
- Continued customer growth of approximately
1.5% year-over-year - Rate relief across multiple jurisdictions
The natural gas distribution segment earned
Regulatory Update:
Oregon : Pending general rate case filed Nov. 25, 2025, requesting an annual increase of$16.4 million Idaho : General rate case settlement approved for an annual increase of$13.0 million Washington : Year two rates under the approved multi-year rate plan, representing an annual increase of$10.8 million $2.1 million - The company anticipates filing a multi-year general rate case this year
Wyoming : System Safety and Integrity Rider filed Aug. 15, 2025; hearing held April 9, 2026, pending before the Wyoming Public Service CommissionMinnesota : General rate case filing is anticipated later this year
Pipeline Segment
Lower storage-related revenue partially offset by contributions from recent expansion projects placed in service
- Decreased interruptible storage withdrawals
- Increased operation and maintenance expense
- Positive results from recent projects placed in service
The pipeline segment earned
These impacts were partially offset by continued strong customer demand for short-term natural gas transportation contracts as well as contributions from a growth project recently placed in service.
Pipeline Segment Strategic Projects Updates:
- Proposed Bakken East Pipeline Project: While a final investment decision has not yet been made, customer interest and ongoing commercial discussions demonstrate continued demand for additional takeaway capacity from the Bakken region. Included in the 1.4 billion cubic feet per day of interest is a firm capacity commitment of
$50 million State of North Dakota , reinforcing the strategic importance of the project to regional energy infrastructure and economic development. The company continues to advance the project in a disciplined manner, navigating evolving market dynamics that include regional data center development considerations, while maintaining a focus on long-term value creation and capital efficiency. Phase One of the proposed project is targeted to be complete in November 2029, with Phase Two targeted to be complete in November 2030. - Line Section 32 Expansion Project: This project will provide natural gas transportation service to a new electric generation facility in northwest
North Dakota . A FERC Section 7(c) application was filed in March 2026, marking an important regulatory milestone in the project's development. The project is dependent on regulatory approvals with construction targeted to be complete in late 2028. - Minot Industrial Project: This proposed project could consist of an approximately 90-mile pipeline from
Tioga, North Dakota toMinot, North Dakota and ancillary facilities to support anticipated industrial demand in the area. An agreement is in place to provide cost recovery protections during the development phase, with the agreement currently extended through late 2026.
Equity and Funding Plan
In connection with the company's December 2025, follow-on public offering, a portion of the related forward sale agreements were settled on March 13, 2026, resulting in the issuance of 4.3 million shares of new common stock for proceeds of
Guidance
For 2026, MDU Resources expects earnings per share to be in the range of
The expected 2026 results are based on these assumptions:
- Normal weather, economic and operating conditions for the remainder of the year
- Continued growth in utility customers at
1% –2% annually - Successful execution of approved capital investment and rate recovery plans
- Continued execution of its debt and equity financing plans
The company's long-term EPS guidance remains unchanged with an expected growth rate of
Conference Call
MDU Resources will webcast its first quarter 2026 earnings conference call today at 2 p.m. ET. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click on "Q1 2026 Earnings Conference Call." After the webcast, a replay will be available at the same location.
About MDU Resources Group, Inc.
MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, delivers safe, reliable, cost-effective and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at investor@mduresources.com.
Investor 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 are based on underlying assumptions (many of which are based, in turn, upon further assumptions), including but not limited to, statements identified by the words "anticipates," "estimates," "expects," "intends," "plans," and "predicts," in each case related to such things as growth estimates, stockholder value creation, the company's "CORE" strategy, capital expenditures, financial guidance, trends, objectives, goals, dividend payout ratio targets, earnings per share growth targets, customer rates, regulatory approvals, sustainability, strategies 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
While made in good faith, these forward-looking statements are based largely on the company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond the company's 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 | ||
March 31, | ||
2026 | 2025 | |
(In millions, except per | ||
(Unaudited) | ||
Operating revenues | $ 606.0 | $ 674.8 |
Operating expenses: | ||
Purchased natural gas sold | 239.4 | 317.2 |
Electric fuel and purchased power | 46.1 | 43.7 |
Operation and maintenance | 114.8 | 111.1 |
Depreciation and amortization | 54.2 | 51.3 |
Taxes, other than income | 35.8 | 38.7 |
Total operating expenses | 490.3 | 562.0 |
Operating income | 115.7 | 112.8 |
Other income (expense) | 2.6 | 5.0 |
Interest expense | 32.7 | 26.8 |
Income before income taxes | 85.6 | 91.0 |
Income tax expense | 4.7 | 8.5 |
Income from continuing operations | 80.9 | 82.5 |
Discontinued operations, net of tax | (.1) | (.5) |
Net income | $ 80.8 | $ 82.0 |
Earnings per share – basic: | ||
Income from continuing operations | $ .39 | $ .40 |
Discontinued operations, net of tax | — | — |
Earnings per share – basic | $ .39 | $ .40 |
Earnings per share – diluted: | ||
Income from continuing operations | $ .39 | $ .40 |
Discontinued operations, net of tax | — | — |
Earnings per share – diluted | $ .39 | $ .40 |
Weighted average common shares outstanding – basic | 205.4 | 204.1 |
Weighted average common shares outstanding – diluted | 207.0 | 205.0 |
Selected Cash Flows Information | ||
Three Months Ended | ||
March 31, | ||
2026 | 2025 | |
(In millions) | ||
Net cash provided by operating activities | $ 149.2 | $ 217.5 |
Net cash used in investing activities | (91.2) | (94.8) |
Net cash used in financing activities | (32.9) | (130.1) |
Increase (decrease) in cash, cash equivalents and restricted cash | 25.1 | (7.4) |
Cash, cash equivalents and restricted cash - beginning of year | 28.2 | 66.9 |
Cash, cash equivalents and restricted cash - end of period | $ 53.3 | $ 59.5 |
Capital Expenditures | ||||||
Business Line | 2026 | 2027 | 2028 | 2029 | 2030 | 2026-2030 |
(In millions) | ||||||
Electric | $ 144 | $ 309 | $ 250 | $ 184 | $ 210 | $ 1,097 |
Natural gas distribution | 361 | 295 | 240 | 254 | 223 | 1,373 |
Pipeline | 60 | 70 | 181 | 282 | 50 | 643 |
Total capital expenditures1 | $ 565 | $ 674 | $ 671 | $ 720 | $ 483 | $ 3,113 |
1 Excludes Other category | ||||||
Note: Total capital expenditures is presented on a net basis | ||||||
The capital program is subject to continued review and modification by the company. Actual expenditures may vary from estimates. Investment in the potential Bakken East Pipeline project would be incremental to the outlined capital program.
Electric | Three Months Ended | ||
March 31, | |||
2026 | 2025 | Variance | |
(In millions) | |||
Operating revenues1,2 | $ 121.2 | $ 112.4 | 7.8 % |
Operating expenses: | |||
Electric fuel and purchased power1 | 46.1 | 43.7 | 5.5 % |
Operation and maintenance | 28.9 | 28.6 | 1.0 % |
Depreciation and amortization | 19.6 | 17.2 | 14.0 % |
Taxes, other than income | 5.5 | 4.8 | 14.6 % |
Total operating expenses | 100.1 | 94.3 | 6.2 % |
Operating income | 21.1 | 18.1 | 16.6 % |
Other income | .4 | 1.0 | (60.0) % |
Interest expense | 11.9 | 7.9 | 50.6 % |
Income before income taxes | 9.6 | 11.2 | (14.3) % |
Income tax benefit2 | (4.9) | (3.8) | 28.9 % |
Net income | $ 14.5 | $ 15.0 | (3.3) % |
Operating Statistics | Three Months Ended | |
March 31, | ||
2026 | 2025 | |
Revenues (millions)1,2 | ||
Retail sales: | ||
Residential | $ 39.1 | $ 38.2 |
Commercial3 | 46.9 | 45.2 |
Industrial | 9.9 | 8.8 |
Other | 2.0 | 1.7 |
97.9 | 93.9 | |
Other | 23.3 | 18.5 |
$ 121.2 | $ 112.4 | |
Volumes (million kWh) | ||
Retail sales: | ||
Residential | 332.0 | 370.7 |
Commercial3 | 741.9 | 723.9 |
Industrial | 120.7 | 116.7 |
Other | 19.2 | 20.2 |
1,213.8 | 1,231.5 | |
Average cost of electric fuel and purchased | $ .028 | $ .027 |
The previous tables reflect items that are passed through to customers 1 Electric fuel and purchased power costs, which impact both 2 Production tax credits, which impact income tax benefit and 3 Commercial includes the impact from data centers | ||
The electric business reported net income of
Natural Gas Distribution | Three Months Ended | ||
March 31, | |||
2026 | 2025 | Variance | |
(In millions) | |||
Operating revenues1,2,3 | $ 462.5 | $ 539.3 | (14.2) % |
Operating expenses: | |||
Purchased natural gas sold1 | 273.8 | 350.5 | (21.9) % |
Operation and maintenance2 | 65.2 | 63.6 | 2.5 % |
Depreciation and amortization | 26.4 | 26.1 | 1.1 % |
Taxes, other than income3 | 26.5 | 30.6 | (13.4) % |
Total operating expenses | 391.9 | 470.8 | (16.8) % |
Operating income | 70.6 | 68.5 | 3.1 % |
Other income | 2.3 | 3.3 | (30.3) % |
Interest expense | 16.3 | 14.8 | 10.1 % |
Income before income taxes | 56.6 | 57.0 | (0.7) % |
Income tax expense | 12.4 | 12.3 | 0.8 % |
Net income | $ 44.2 | $ 44.7 | (1.1) % |
Operating Statistics | Three Months Ended | |
March 31, | ||
2026 | 2025 | |
Revenues (millions)1,2,3 | ||
Retail Sales: | ||
Residential | $ 259.5 | $ 291.6 |
Commercial | 150.2 | 189.6 |
Industrial | 13.4 | 15.7 |
423.1 | 496.9 | |
Transportation and other | 39.4 | 42.4 |
$ 462.5 | $ 539.3 | |
Volumes (MMdk) | ||
Retail sales: | ||
Residential | 26.5 | 31.8 |
Commercial | 18.6 | 21.9 |
Industrial | 1.5 | 1.7 |
46.6 | 55.4 | |
Transportation sales: | ||
Commercial | .6 | .8 |
Industrial | 38.9 | 48.4 |
39.5 | 49.2 | |
Total throughput | 86.1 | 104.6 |
Average cost of natural gas per dk | $ 5.87 | $ 6.33 |
The previous tables reflect items that are passed through to customers 1 Natural gas costs, which impact operating revenues and purchased 2 Conservation, which impacts operating revenues and operation and 3 Revenue-based taxes that impact both operating revenues and taxes, | ||
The natural gas distribution business reported net income of
Pipeline | Three Months Ended | ||
March 31, | |||
2026 | 2025 | Variance | |
(In millions) | |||
Operating revenues | $ 57.1 | $ 56.7 | .7 % |
Operating expenses: | |||
Operation and maintenance | 20.8 | 19.3 | 7.8 % |
Depreciation and amortization | 8.2 | 8.0 | 2.5 % |
Taxes, other than income | 3.8 | 3.3 | 15.2 % |
Total operating expenses | 32.8 | 30.6 | 7.2 % |
Operating income | 24.3 | 26.1 | (6.9) % |
Other income (expense) | (.3) | .4 | (175.0) % |
Interest expense | 4.0 | 4.2 | (4.8) % |
Income before income taxes | 20.0 | 22.3 | (10.3) % |
Income tax expense | 4.7 | 5.1 | (7.8) % |
Net income | $ 15.3 | $ 17.2 | (11.0) % |
Operating Statistics | Three Months Ended | |
March 31, | ||
2026 | 2025 | |
Transportation volumes (MMdk) | 143.2 | 143.5 |
Customer natural gas storage balance (MMdk): | ||
Beginning of period | 37.6 | 44.1 |
Net withdrawal | (10.3) | (22.0) |
End of period | 27.3 | 22.1 |
The pipeline business reported net income of
Other | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | Variance | |
(In millions) | |||
Operating revenues | $ .2 | $ .2 | — % |
Operating expenses: | |||
Operation and maintenance | .5 | .1 | 400.0 % |
Total operating expenses | .5 | .1 | 400.0 % |
Operating income (loss) | (.3) | .1 | (400.0) % |
Other income | 1.1 | 1.4 | (21.4) % |
Interest expense | 1.4 | 1.0 | 40.0 % |
Income (loss) before income taxes | (.6) | .5 | (220.0) % |
Income tax benefit | (7.5) | (5.1) | 47.1 % |
Income from continuing operations | 6.9 | 5.6 | 23.2 % |
Discontinued operations, net of tax | (.1) | (.5) | (80.0) % |
Net income | $ 6.8 | $ 5.1 | 33.3 % |
For the first quarter of 2026 Other reported net income of
Other includes the activities of the captive insurer which insures various types of risks of the company's subsidiaries. Also included in Other is general and administrative costs and interest expense previously allocated to the company's former businesses that did not meet the criteria for discontinued operations. Discontinued operations includes certain costs associated with legacy business activities.
Other Financial Data | ||
March 31, | ||
2026 | 2025 | |
(In millions, except per share amounts) | ||
(Unaudited) | ||
Book value per common share | $ 13.89 | $ 13.42 |
Market price per common share | $ 20.72 | $ 16.91 |
Market value as a percent of book value | 149.2 % | 126.0 % |
Total assets | $ 7,684 | $ 6,961 |
Total equity | $ 2,904 | $ 2,743 |
Total debt | $ 2,596 | $ 2,194 |
Capitalization ratios: | ||
Total equity | 52.8 % | 55.6 % |
Total debt | 47.2 % | 44.4 % |
100.0 % | 100.0 % | |
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SOURCE MDU Resources Group, Inc.