MDU Resources Reports Strong Performance; Initiates Guidance for 2025
MDU Resources Group reported strong financial performance for 2024, with net income of $281.1 million. The company's regulated energy delivery earnings increased 13.6% year-over-year to $189.7 million. Notable achievements include record annual pipeline transportation volumes (up 8.1%) and utility rate base growth of 6.8%.
Key segment performance includes: Electric utility earnings up 4.5% to $74.8 million, Pipeline segment earnings up 45% to $68.0 million, and Natural Gas Distribution earnings at $46.9 million. The company successfully completed the spinoff of Everus Construction Group on October 31, 2024.
Looking ahead, MDU Resources provided 2025 guidance with expected earnings per share of $0.88 to $0.98, planning $533 million in capital investment. The company's long-term strategy targets 7-8% compound annual growth in utility rate base and 6-8% in earnings per share.
MDU Resources Group ha riportato performance finanziaria solide per il 2024, con un reddito netto di 281,1 milioni di dollari. Gli utili della consegna di energia regolamentata dell'azienda sono aumentati del 13,6% rispetto all'anno precedente, raggiungendo i 189,7 milioni di dollari. Tra i risultati notevoli si annoverano i volumi record di trasporto di gasdotti annuali (in aumento dell'8,1%) e la crescita della base tariffaria dei servizi pubblici del 6,8%.
Le performance chiave dei segmenti includono: gli utili dell'utilità elettrica aumentati del 4,5% a 74,8 milioni di dollari, gli utili del segmento gasdotto aumentati del 45% a 68,0 milioni di dollari e gli utili della distribuzione di gas naturale pari a 46,9 milioni di dollari. L'azienda ha completato con successo la scissione del gruppo Everus Construction il 31 ottobre 2024.
Guardando al futuro, MDU Resources ha fornito indicazioni per il 2025, con utili per azione previsti tra 0,88 e 0,98 dollari, pianificando 533 milioni di dollari in investimenti di capitale. La strategia a lungo termine dell'azienda punta a una crescita annuale composta del 7-8% nella base tariffaria dei servizi pubblici e del 6-8% negli utili per azione.
MDU Resources Group reportó un sólido desempeño financiero para 2024, con un ingreso neto de 281.1 millones de dólares. Las ganancias de la entrega de energía regulada de la empresa aumentaron un 13.6% interanual a 189.7 millones de dólares. Los logros notables incluyen volúmenes récord anuales de transporte de tuberías (un aumento del 8.1%) y un crecimiento de la base de tarifas de servicios públicos del 6.8%.
El desempeño clave de los segmentos incluye: las ganancias de la utilidad eléctrica aumentaron un 4.5% a 74.8 millones de dólares, las ganancias del segmento de tuberías aumentaron un 45% a 68.0 millones de dólares, y las ganancias de la distribución de gas natural alcanzaron los 46.9 millones de dólares. La empresa completó con éxito la escisión de Everus Construction Group el 31 de octubre de 2024.
Mirando hacia adelante, MDU Resources proporcionó guía para 2025, con ganancias esperadas por acción de 0.88 a 0.98 dólares, planificando 533 millones de dólares en inversión de capital. La estrategia a largo plazo de la empresa tiene como objetivo un crecimiento anual compuesto del 7-8% en la base de tarifas de servicios públicos y del 6-8% en ganancias por acción.
MDU 리소스 그룹은 2024년에 강력한 재무 성과를 보고했으며, 순이익은 2억 8,110만 달러에 달합니다. 회사의 규제된 에너지 배급 수익은 전년 대비 13.6% 증가하여 1억 8,970만 달러에 이르렀습니다. 주목할 만한 성과로는 연간 파이프라인 운송량의 기록적인 증가(8.1% 증가)와 유틸리티 요금 기반의 6.8% 성장 등이 있습니다.
주요 세그먼트 성과는 다음과 같습니다: 전기 유틸리티 수익이 4.5% 증가하여 7,480만 달러에 달하였고, 파이프라인 세그먼트의 수익은 45% 증가하여 6,800만 달러에 이르렀으며, 천연가스 유통의 수익은 4,690만 달러입니다. 이 회사는 2024년 10월 31일에 Everus Construction Group의 분사를 성공적으로 완료했습니다.
앞으로 MDU 리소스 그룹은 2025년을 위한 가이드를 제공하며, 예상 주당 수익은 0.88달러에서 0.98달러로 계획하고 있으며, 5억 3,300만 달러의 자본 투자 계획을 세우고 있습니다. 회사의 장기 전략은 유틸리티 요금 기반에서 7-8%의 복합 연간 성장률과 주당 수익에서 6-8%의 목표를 설정하고 있습니다.
MDU Resources Group a rapporté une solide performance financière pour 2024, avec un revenu net de 281,1 millions de dollars. Les bénéfices de la livraison d'énergie régulée de l'entreprise ont augmenté de 13,6% par rapport à l'année précédente, atteignant 189,7 millions de dollars. Parmi les résultats notables, on trouve des volumes de transport de pipelines annuels record (en hausse de 8,1%) et une croissance de la base tarifaire des services publics de 6,8%.
Les performances clés des segments incluent : les bénéfices de l'utilité électrique en hausse de 4,5% à 74,8 millions de dollars, les bénéfices du segment des pipelines en hausse de 45% à 68,0 millions de dollars et les bénéfices de la distribution de gaz naturel s'élevant à 46,9 millions de dollars. L'entreprise a réussi à finaliser la scission du groupe Everus Construction le 31 octobre 2024.
En regardant vers l'avenir, MDU Resources a fourni des prévisions pour 2025, avec des bénéfices par action attendus entre 0,88 et 0,98 dollars, prévoyant des investissements en capital de 533 millions de dollars. La stratégie à long terme de l'entreprise vise une croissance annuelle composée de 7 à 8% dans la base tarifaire des services publics et de 6 à 8% dans les bénéfices par action.
MDU Resources Group berichtete von einer starken finanziellen Leistung für 2024, mit einem Nettogewinn von 281,1 Millionen Dollar. Die regulierten Erträge aus der Energieversorgung des Unternehmens stiegen im Vergleich zum Vorjahr um 13,6% auf 189,7 Millionen Dollar. Zu den bemerkenswerten Erfolgen gehören Rekordjahresvolumina im Pipeline-Transport (ein Anstieg um 8,1%) und ein Wachstum der Basispreise für Versorgungsunternehmen um 6,8%.
Wichtige Segmentleistungen umfassen: Die Erträge des Stromversorgungsunternehmens stiegen um 4,5% auf 74,8 Millionen Dollar, die Erträge im Pipelinesegment stiegen um 45% auf 68,0 Millionen Dollar, und die Erträge der Erzeugung von Erdgas beliefen sich auf 46,9 Millionen Dollar. Das Unternehmen schloss erfolgreich die Abspaltung der Everus Construction Group am 31. Oktober 2024 ab.
Für die Zukunft gab MDU Resources eine Prognose für 2025 ab, mit einem erwarteten Gewinn pro Aktie von 0,88 bis 0,98 Dollar und plant eine Kapitalinvestition von 533 Millionen Dollar. Die langfristige Strategie des Unternehmens zielt auf ein jährliches Wachstum von 7-8% bei der Basis der Versorgungsunternehmen und 6-8% bei den Erträgen pro Aktie ab.
- Net income of $281.1 million in 2024
- Regulated energy delivery earnings increased 13.6% to $189.7 million
- Record pipeline transportation volumes, up 8.1% YoY
- Pipeline segment earnings grew 45% to $68.0 million
- Utility rate base grew 6.8% YoY
- Storage-related revenue increased by $7.1 million
- Natural gas distribution earnings decreased due to higher operations and maintenance expenses
- Lower electric utility volumes due to cooler weather
- Earnings per share declined from $2.03 in 2023 to $1.37 in 2024
Insights
MDU Resources' transformation into a pure-play regulated utility following the Everus Construction spinoff has yielded impressive results, with regulated energy delivery earnings showing robust
The regulatory landscape appears highly supportive, with successful rate case outcomes in multiple jurisdictions. The approved
The pipeline segment's record performance, driven by strategic expansion projects and FERC-approved rates, represents a significant growth catalyst. The Wahpeton Expansion and potential Bakken East Pipeline project indicate substantial organic growth opportunities in natural gas infrastructure.
The 2025 EPS guidance of
- 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 $0.98
"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 |
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 andMontana contributed$7.1 million
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 - Benefited from rate relief primarily from
North Dakota andSouth Dakota regulatory actions, contributing$14.1 million
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 $11.6 million - 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 $10.8 million - On Jan. 14, 2025, the utility was granted interim rate relief of
$7.7 million $9.4 million
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
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
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
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 investor@mduresources.com.
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
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 | 2025 | 2026 | 2027 | 2025 - 2029 Total |
(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 | |||||
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
For the full year, the electric business reported net income of
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
For the full year, the natural gas distribution business reported net income of
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
For the full year, the pipeline business reported net income of
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 | |||||||
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
For the full year, Other was impacted by the absence of the company's 2023 gain of
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 | |
(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 % |
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SOURCE MDU Resources Group, Inc.
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