MDU Resources Reports Strong Q3 Earnings, Increases 2024 Guidance
MDU Resources reported strong Q3 2024 results with growth across utility, pipeline, and construction services. Electric earnings reached $24.3 million (+16.3% YoY), pipeline earnings hit $15.1 million (+27.0% YoY), and construction services earnings grew to $41.8 million (+16.1% YoY). The company increased its regulated energy delivery earnings guidance to $180-185 million. Following the successful spinoff of Everus Construction Group, MDU has completed its transformation into a pure-play regulated energy delivery business. Q3 adjusted income from continuing operations was $65.5 million, with adjusted EPS of $0.32.
MDU Resources ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita nei settori dei servizi di utilità, pipeline e costruzione. I guadagni elettrici hanno raggiunto i 24,3 milioni di dollari (+16,3% rispetto all'anno precedente), i guadagni dalla pipeline hanno toccato i 15,1 milioni di dollari (+27,0% rispetto all'anno precedente) e i guadagni dai servizi di costruzione sono cresciuti a 41,8 milioni di dollari (+16,1% rispetto all'anno precedente). L'azienda ha aumentato la sua previsione di guadagni per la consegna di energia regolamentata a 180-185 milioni di dollari. In seguito allo scorporo di successo del gruppo Everus Construction, MDU ha completato la sua trasformazione in un'azienda focalizzata esclusivamente sulla consegna di energia regolamentata. Il reddito rettificato delle operazioni continuative per il terzo trimestre è stato di 65,5 milioni di dollari, con un utile per azione rettificato di 0,32 dollari.
MDU Resources reportó resultados sólidos en el tercer trimestre de 2024, con crecimiento en los servicios de utilidad, pipeline y construcción. Los ingresos eléctricos alcanzaron los 24,3 millones de dólares (+16,3% interanual), los ingresos por pipeline llegaron a 15,1 millones de dólares (+27,0% interanual) y los ingresos por servicios de construcción crecieron a 41,8 millones de dólares (+16,1% interanual). La compañía elevó su guía de ganancias para la entrega de energía regulada a 180-185 millones de dólares. Tras la exitosa escisión del grupo Everus Construction, MDU ha completado su transformación en un negocio dedicado exclusivamente a la entrega de energía regulada. El ingreso ajustado de las operaciones continuas en el tercer trimestre fue de 65,5 millones de dólares, con una utilidad por acción ajustada de 0,32 dólares.
MDU Resources는 2024년 3분기 강력한 실적을 보고하며 공공 서비스, 파이프라인 및 건설 서비스 전반에 걸쳐 성장을 보였습니다. 전기 수익은 2430만 달러에 도달했으며(+16.3% 전년 대비), 파이프라인 수익은 1510만 달러(+27.0% 전년 대비), 건설 서비스 수익은 4180만 달러(+16.1% 전년 대비)로 성장했습니다. 이 회사는 규제된 에너지 전송 수익 가이드를 1억 8천만 ~ 1억 8천5백만 달러로 증가시켰습니다. Everus Construction Group의 성공적인 분사 이후, MDU는 순수하게 규제된 에너지 전송 사업으로의 변화를 완료했습니다. 3분기 연속 운영에서 조정된 소득은 6550만 달러였으며, 조정된 주당 순이익은 0.32달러입니다.
MDU Resources a rapporté des résultats solides pour le troisième trimestre 2024, avec une croissance dans les services publics, les pipelines et les services de construction. Les revenus électriques ont atteint 24,3 millions de dollars (+16,3 % par rapport à l'année précédente), les revenus des pipelines ont atteint 15,1 millions de dollars (+27,0 % par rapport à l'année précédente) et les revenus des services de construction ont augmenté à 41,8 millions de dollars (+16,1 % par rapport à l'année précédente). L'entreprise a revu à la hausse ses prévisions de revenus pour la distribution d'énergie réglementée à 180-185 millions de dollars. Suite à la scission réussie du groupe Everus Construction, MDU a complété sa transformation en une entreprise exclusivement dédiée à la distribution d'énergie réglementée. Le revenu ajusté des opérations continues pour le troisième trimestre s'élevait à 65,5 millions de dollars, avec un bénéfice par action ajusté de 0,32 dollar.
MDU Resources berichtete über starke Ergebnisse für das 3. Quartal 2024 mit Wachstum in den Bereichen Versorgungsdienste, Pipeline und Bauleistungen. Die Elektrikeinnahmen beliefen sich auf 24,3 Millionen US-Dollar (+16,3% im Vergleich zum Vorjahr), die Pipeline-Einnahmen erreichten 15,1 Millionen US-Dollar (+27,0% im Vergleich zum Vorjahr), und die Einnahmen aus Bauleistungen wuchsen auf 41,8 Millionen US-Dollar (+16,1% im Vergleich zum Vorjahr). Das Unternehmen hat seine Prognose für die regulierten Energieabgaben auf 180 bis 185 Millionen US-Dollar erhöht. Nach dem erfolgreichen Spin-off der Everus Construction Group hat MDU seine Transformation zu einem reinen Unternehmen für regulierte Energieabgaben abgeschlossen. Das bereinigte Einkommen aus fortführenden Geschäften im 3. Quartal betrug 65,5 Millionen US-Dollar, mit einem bereinigten Gewinn pro Aktie von 0,32 US-Dollar.
- Electric earnings increased 16.3% YoY to $24.3 million
- Pipeline segment achieved record Q3 earnings of $15.1 million, up 27.0% YoY
- Construction services earnings grew 16.1% YoY to $41.8 million
- Increased 2024 regulated energy delivery earnings guidance to $180-185 million
- Total retail customers increased 1.5%, aligned with projected growth
- Construction services revenue increased to $761.0 million from $717.4 million YoY
- Net income decreased from $74.9 million to $64.6 million YoY
- Diluted EPS declined from $0.37 to $0.32 YoY
- Natural gas distribution reported seasonal loss of $17.5 million
Insights
MDU Resources delivered a strong Q3 with significant growth across key segments. The 16.3% increase in electric earnings to
The increased 2024 guidance range of
The strategic transformation to a pure-play regulated utility is particularly significant for MDU's growth trajectory. The pipeline segment's record Q3 earnings and expansion projects, including the 137 million cubic feet/day Line Section 28 project and Wahpeton Expansion, directly address increasing regional energy demand. The acquisition of the 28-mile natural gas pipeline lateral in North Dakota's Bakken region strategically extends the company's infrastructure footprint in a key energy production area.
The robust regulatory calendar, with multiple rate cases filed or planned across jurisdictions, demonstrates proactive management of the rate base growth. The new electric service agreements for data center loads (up to 350 MW in North Dakota and 50 MW in South Dakota) represent significant growth opportunities in the evolving utility landscape.
Key Financial Highlights for Third Quarter 2024:
- Electric earnings of
, an increase of$24.3 million 16.3% over third quarter 2023. - Pipeline record third quarter earnings of
, up$15.1 million 27.0% from the same quarter last year. - Construction services earnings of
, a$41.8 million 16.1% increase from third quarter 2023. - Increasing regulated energy delivery earnings guidance range to
to$180 million .$185 million
"The successful spinoff of Everus Construction Group on October 31, following last year's Knife River Corporation spinoff, marks the completion of our strategic initiatives," said Nicole A. Kivisto, president and CEO of MDU Resources. "This positions MDU Resources as a pure-play regulated energy delivery business, which we believe will drive sustained growth and shareholder value. Third quarter earnings were robust, with growth across each segment. The electric utility business benefited from rate relief and favorable weather, while the pipeline segment saw higher transportation and storage revenue. Continued momentum in our regulated energy delivery businesses has led to increased earnings guidance for 2024."
The company's financial results for the third quarter ended Sept. 30, 2024, include Everus Construction Group in continuing operations. The following summarizes the company's third quarter results:
2024 | 2023 | |
(In millions, except per share amounts) | ||
Net income | $ 64.6 | $ 74.9 |
Earnings per share, diluted | $ 0.32 | $ 0.37 |
Income from continuing operations1 | $ 62.2 | $ 78.2 |
Earnings per share from continuing operations, diluted1 | $ 0.31 | $ 0.38 |
Adjusted income from continuing operations2,3 | $ 65.5 | $ 58.6 |
Adjusted earnings per share from continuing operations, diluted2,3 | $ 0.32 | $ 0.29 |
Regulated energy delivery earnings | $ 21.9 | $ 15.5 |
Construction services | ||
Revenue | $ 761.0 | $ 717.4 |
Earnings | $ 41.8 | $ 36.0 |
EBITDA3 | $ 65.0 | $ 58.0 |
1 Includes a |
2 Excludes costs attributable to strategic initiatives of |
3 Adjusted income from continuing operations, adjusted earnings per share from continuing operations and EBITDA are non-GAAP financial measures. Additional explanation is provided in the "Non-GAAP Financial Measures" section of this news release. |
Electric and Natural Gas Utility
- Combined electric and natural gas earnings of
in the third quarter of 2024, a$6.8 million increase from the previous year.$3.6 million - Electric earnings of
due to rate relief and higher volumes from warmer weather.$24.3 million - Natural gas distribution seasonal loss of
, a$17.5 million lower loss than third quarter 2023 due to rate relief and higher investment returns on nonqualified benefit plans, largely offset by the absence of short-term debt interest recovery in$0.2 million Idaho .
Total retail customers increased
Regulatory Update
- On July 15, 2024, the utility filed with the Montana Public Service Commission a natural gas rate case requesting an annual revenue increase of
, or$9.4 million 11.1% . The request is pending a decision by the commission. The utility filed for an interim revenue increase of , or$8.0 million 10.2% , which was denied by the commission. On Oct. 25, 2024, a motion for reconsideration was filed with the Montana PSC. The commission has 20 days to make a decision on the motion. - On July 26, 2024, an all-party settlement agreement was filed in the utility's
South Dakota electric rate case reflecting an annual revenue increase of , or$1.4 million 8.6% . On Aug. 13, 2024, the South Dakota Public Utilities Commission approved the Settlement Stipulation with final rates effective Sept. 1, 2024. - On July 26, 2024, an all-party settlement agreement was filed in the utility's
South Dakota natural gas rate case reflecting an annual revenue increase of , or$5.4 million 8.1% . On Aug. 13, 2024, the South Dakota Public Utilities Commission approved the Settlement Stipulation with final rates effective Sept. 1, 2024. - On Aug. 5, 2024, the utility filed a request with the South Dakota Public Utilities Commission seeking approval of an electric service agreement to provide up to 50 MW of service to a data center to be located near
Leola, SD . Construction on the data center is expected to begin later this year. - On Sept. 5, 2024, the utility filed an amendment to the electric service agreement previously approved by the North Dakota Public Service Commission, increasing the service provided from 225 MW to 350 MW.
- On Sept. 16, 2024, an all-party settlement agreement was filed in the utility's
North Dakota natural gas rate case reflecting an annual revenue increase of ,$9.4 million 6.1% . This matter is pending before the commission. - On Oct. 31, 2024, the utility filed with the Wyoming Public Service Commission a natural gas rate case requesting an annual revenue increase of
, or$2.6 million 14.0% . The request is pending a decision by the commission. - The utility is targeting natural gas rate case filings in
Oregon ,Minnesota andIdaho and an electric rate case filing inWyoming over the next twelve months.
Pipeline
- Achieved record third quarter earnings of
, compared to$15.1 million in third quarter 2023.$11.9 million - Higher revenues from record third quarter transportation volumes and strong demand for natural gas storage services, partially offset by higher operation and maintenance expense.
- Increased revenue from transportation and storage service rates that were effective on Aug. 1, 2023.
The pipeline segment continues to deliver strong results, driven by the execution of strategic expansion projects, increased demand for transportation and storage services as well as new Federal Energy Regulatory Commission approved rates. The segment continues to invest in future expansion projects to meet increasing customer demand for services. On July 1, 2024, the pipeline business placed in service its Line Section 28 Expansion project. The expansion adds 137 million cubic feet of natural gas transportation capacity per day. Construction is progressing on the company's Wahpeton Expansion project in eastern
Construction Services
- Earnings of
, compared to$41.8 million in the third quarter of 2023.$36.0 million - Increased revenues of
, compared to$761.0 million in the third quarter of 2023.$717.4 million - EBITDA of
in the third quarter of 2024, compared to$65.0 million in the third quarter of 2023.$58.0 million
The earnings increase was primarily from higher revenues and income from joint venture activity coupled with lower interest expense, partially offset by higher selling, general and administrative expense, and income taxes due to higher income before taxes.
Discontinued Operations and Adjusted Earnings
On May 31, 2023, MDU Resources completed the spinoff of Knife River Corporation, which became an independent, publicly-traded company. MDU Resources has reported
MDU Resources is reporting adjusted income from continuing operations and adjusted earnings per share that exclude the costs associated with its strategic initiatives and the 2023 unrealized gain of
Increased Guidance for 2024
MDU Resources increased and narrowed earnings guidance for its regulated energy delivery businesses to the range of
The expected 2024 results are based on these assumptions:
- Normal weather for the remainder of the year, including precipitation and temperatures, across all company markets.
- Normal 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 planned equity issuances.
Conference Call
MDU Resources' management will discuss on a webcast at 2 p.m. ET today the company's third quarter results. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click "Q3 2024 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 index, provides essential products and services through its regulated energy delivery businesses. Founded in 1924, the company is celebrating its 100th anniversary, learn more at www.mdu.com/100th-anniversary. For more information about MDU Resources, visit www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
Media Contacts
Byron L. Pfordte, manager of integrated communications, 208-377-6050
Investor Contact
Brent Miller, assistant treasurer and director of financial projects & investor relations, 701-530-1730
Forward-Looking Statements
The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company's businesses. Many of these highlighted statements and other statements not historical in nature are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, there is no assurance the company's projections, including estimates for growth, shareholder value creation, capital expenditures and financial guidance will be achieved. Please refer to assumptions contained in this news release, as well as the various risks listed in Part I, Item 1A - Risk Factors in the company's most recent Form 10-K and subsequent filings with the
Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
Consolidated Statements of Income | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
(In millions, except per share amounts) | ||||
Operating revenues: | (Unaudited) | |||
Electric, natural gas distribution and regulated pipeline | $ 286.0 | $ 279.5 | $ 1,212.6 | $ 1,294.0 |
Non-regulated pipeline, construction services and other | 764.5 | 721.3 | 2,099.3 | 2,228.0 |
Total operating revenues | 1,050.5 | 1,000.8 | 3,311.9 | 3,522.0 |
Operating expenses: | ||||
Operation and maintenance: | ||||
Electric, natural gas distribution and regulated pipeline | 101.3 | 99.3 | 307.7 | 296.8 |
Non-regulated pipeline, construction services and other | 685.3 | 639.3 | 1,883.9 | 2,008.0 |
Total operation and maintenance | 786.6 | 738.6 | 2,191.6 | 2,304.8 |
Purchased natural gas sold | 53.4 | 56.0 | 406.5 | 542.8 |
Electric fuel and purchased power | 25.2 | 29.0 | 87.6 | 73.8 |
Depreciation and amortization | 56.2 | 53.1 | 167.8 | 158.9 |
Taxes, other than income | 38.3 | 39.5 | 141.9 | 156.5 |
Total operating expenses | 959.7 | 916.2 | 2,995.4 | 3,236.8 |
Operating income | 90.8 | 84.6 | 316.5 | 285.2 |
Unrealized gain on retained shares in | — | 30.2 | — | 170.2 |
Other income | 13.8 | 8.8 | 42.3 | 29.2 |
Interest expense | 29.4 | 32.1 | 86.8 | 82.6 |
Income before income taxes | 75.2 | 91.5 | 272.0 | 402.0 |
Income tax expense | 13.0 | 13.3 | 48.4 | 92.3 |
Income from continuing operations | 62.2 | 78.2 | 223.6 | 309.7 |
Discontinued operations, net of tax | 2.4 | (3.3) | 2.3 | (65.7) |
Net income | $ 64.6 | $ 74.9 | $ 225.9 | $ 244.0 |
Earnings per share – basic: | ||||
Income from continuing operations | $ .31 | $ .38 | $ 1.10 | $ 1.52 |
Discontinued operations, net of tax | .01 | (.01) | .01 | (.32) |
Earnings per share – basic | $ .32 | $ .37 | $ 1.11 | $ 1.20 |
Earnings per share – diluted: | ||||
Income from continuing operations | $ .31 | $ .38 | $ 1.10 | $ 1.52 |
Discontinued operations, net of tax | .01 | (.01) | .01 | (.32) |
Earnings per share – diluted | $ .32 | $ .37 | $ 1.11 | $ 1.20 |
Weighted average common shares outstanding – basic | 203.9 | 203.6 | 203.9 | 203.6 |
Weighted average common shares outstanding – diluted | 204.7 | 203.9 | 204.5 | 203.9 |
Selected Cash Flows Information1 | ||
Nine Months Ended | ||
September 30, | ||
2024 | 2023 | |
(In millions) | ||
Net cash provided by operating activities | $ 441.8 | $ 174.9 |
Net cash used in investing activities | (392.5) | (415.7) |
Net cash (used in) provided by financing activities | (22.3) | 192.8 |
Increase (decrease) in cash, cash equivalents and restricted cash | 27.0 | (48.0) |
Cash, cash equivalents and restricted cash - beginning of year | 77.0 | 80.5 |
Cash, cash equivalents and restricted cash - end of period | $ 104.0 | $ 32.5 |
1 Includes cash flows from discontinued operations. |
Capital Expenditures | |
Business Line | 2024 Estimated |
(In millions) | |
Electric | $ 111 |
Natural gas distribution | 302 |
Pipeline | 126 |
Total capital expenditures1 | $ 539 |
1 Excludes Construction services and Other category, as well as net proceeds from the sale or disposition of property. | |
Note: Total capital expenditures is presented on a gross basis. |
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 EBITDA by operating segment, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted income from continuing operations, and adjusted earnings per share from continuing operations. The company defines EBITDA as net income (loss) attributable to the operating segment before interest, taxes, and depreciation and amortization, EBITDA from continuing operations as income (loss) from continuing operations before interest, taxes, and depreciation and amortization, and adjusted EBITDA from continuing operations as income (loss) from continuing operations before interest, taxes, and depreciation and amortization before any transaction-related impacts from strategic initiatives. 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 and adjusted earnings per share from continuing operations as earnings per share from continuing operations before any transaction-related impacts from strategic initiatives, including the 2023 unrealized gain on retained shares in
The company believes these non-GAAP financial measures provide meaningful information to investors about operational efficiency compared to the company's peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels, capital investment, the unrealized gain on retained shares in
The following tables provide a reconciliation of consolidated income from continuing operations to adjusted income from continuing operations, earnings per share from continuing operations to adjusted earnings per share from continuing operations, GAAP net income to EBITDA from continuing operations, and GAAP net income to adjusted EBITDA from continuing operations. The reconciliation for each operating segment's EBITDA is included within each operating segment's condensed income statement.
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
(In millions, except per share amounts) | ||||
(Unaudited) | ||||
Income from continuing operations | $ 62.2 | $ 78.2 | $ 223.6 | $ 309.7 |
Adjustments: | ||||
Less: Unrealized gain on retained shares in | — | 22.8 | — | 113.6 |
Costs attributable to strategic initiatives, net of tax2 | 3.3 | 3.2 | 13.7 | 9.8 |
Adjusted income from continuing operations | $ 65.5 | $ 58.6 | $ 237.3 | $ 205.9 |
Earnings per share reconciliation - diluted | ||||
Earnings per share from continuing operations | $ .31 | $ .38 | $ 1.10 | $ 1.52 |
Adjustments: | ||||
Less: Earnings per share attributable to unrealized gain on retained shares in | — | .11 | — | .56 |
Loss per share attributable to strategic initiative costs2 | .01 | .02 | .06 | .05 |
Adjusted earnings per share from continuing operations | $ .32 | $ .29 | $ 1.16 | $ 1.01 |
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
(In millions) | ||||
Net income | $ 64.6 | $ 74.9 | $ 225.9 | $ 244.0 |
Discontinued operations, net of tax | 2.4 | (3.3) | 2.3 | (65.7) |
Income from continuing operations | 62.2 | 78.2 | 223.6 | 309.7 |
Adjustments: | ||||
Interest expense | 29.4 | 32.1 | 86.8 | 82.6 |
Income tax expense | 13.0 | 13.3 | 48.4 | 92.3 |
Depreciation and amortization | 56.2 | 53.1 | 167.8 | 158.9 |
EBITDA from continuing operations | $ 160.8 | $ 176.7 | $ 526.6 | $ 643.5 |
Adjustments: | ||||
Less: Unrealized gain on retained shares in | — | 22.8 | — | 113.6 |
Costs attributable to strategic initiatives, net of tax2 | 3.3 | 3.2 | 13.7 | 9.8 |
Adjusted EBITDA from continuing operations | $ 164.1 | $ 157.1 | $ 540.3 | $ 539.7 |
1 Includes unrealized gain in 2023 of retained shares in 2 Includes costs attributable to strategic initiatives in 2024 of year to date. Costs attributable to strategic initiatives in 2023 of million year to date. Strategic initiative costs associated with the Knife River separation are reflected in discontinued operations. |
Electric | Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | ||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | ||
(In millions) | |||||||
Operating revenues1,2 | $ 108.5 | $ 108.1 | — % | $ 315.5 | $ 294.8 | 7 % | |
Operating expenses: | |||||||
Electric fuel and purchased power1 | 25.2 | 29.0 | (13) % | 87.6 | 73.8 | 19 % | |
Operation and maintenance | 30.7 | 30.1 | 2 % | 91.5 | 88.5 | 3 % | |
Depreciation and amortization | 16.9 | 16.0 | 6 % | 49.7 | 47.8 | 4 % | |
Taxes, other than income | 3.6 | 4.3 | (16) % | 13.2 | 13.3 | (1) % | |
Total operating expenses | 76.4 | 79.4 | (4) % | 242.0 | 223.4 | 8 % | |
Operating income | 32.1 | 28.7 | 12 % | 73.5 | 71.4 | 3 % | |
Other income | 1.4 | 1.3 | 8 % | 5.5 | 3.4 | 62 % | |
Interest expense | 7.6 | 7.0 | 9 % | 22.4 | 20.5 | 9 % | |
Income before income taxes | 25.9 | 23.0 | 13 % | 56.6 | 54.3 | 4 % | |
Income tax (benefit) expense2 | 1.6 | 2.1 | (24) % | (1.1) | .4 | (375) % | |
Net income | $ 24.3 | $ 20.9 | 16 % | $ 57.7 | $ 53.9 | 7 % | |
Adjustments: | |||||||
Interest expense | 7.6 | 7.0 | 9 % | 22.4 | 20.5 | 9 % | |
Income tax (benefit) expense | 1.6 | 2.1 | (24) % | (1.1) | .4 | (375) % | |
Depreciation and amortization | 16.9 | 16.0 | 6 % | 49.7 | 47.8 | 4 % | |
EBITDA | $ 50.4 | $ 46.0 | 10 % | $ 128.7 | $ 122.6 | 5 % |
Operating Statistics | Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
Revenues (millions)1,2 | |||||
Retail sales: | |||||
Residential | $ 36.7 | $ 33.6 | $ 106.8 | $ 100.0 | |
Commercial | 44.7 | 47.1 | 125.7 | 118.1 | |
Industrial | 9.5 | 10.5 | 32.4 | 31.0 | |
Other | 2.0 | 1.8 | 6.0 | 5.1 | |
92.9 | 93.0 | 270.9 | 254.2 | ||
Other | 15.6 | 15.1 | 44.6 | 40.6 | |
$ 108.5 | $ 108.1 | $ 315.5 | $ 294.8 | ||
Volumes (million kWh) | |||||
Retail sales: | |||||
Residential | 300.4 | 275.5 | 868.5 | 899.3 | |
Commercial | 725.5 | 692.1 | 1,762.9 | 1,619.9 | |
Industrial | 119.1 | 143.5 | 394.7 | 435.7 | |
Other | 21.7 | 20.6 | 61.0 | 61.5 | |
1,166.7 | 1,131.7 | 3,087.1 | 3,016.4 | ||
Average cost of electric fuel and purchased power per kWh | $ .020 | $ .024 | $ .026 | $ .023 | |
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) expense and operating revenues. |
The electric business reported net income of
The electric business's EBITDA increased
Natural Gas Distribution | Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | ||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | ||
(In millions) | |||||||
Operating revenues1,2 | $ 133.6 | $ 135.0 | (1) % | $ 794.6 | $ 919.7 | (14) % | |
Operating expenses: | |||||||
Purchased natural gas sold1 | 57.3 | 59.6 | (4) % | 449.5 | 580.3 | (23) % | |
Operation and maintenance | 54.8 | 55.5 | (1) % | 169.2 | 165.3 | 2 % | |
Depreciation and amortization | 25.0 | 23.9 | 5 % | 76.1 | 70.6 | 8 % | |
Taxes, other than income2 | 11.2 | 11.3 | (1) % | 55.1 | 57.8 | (5) % | |
Total operating expenses | 148.3 | 150.3 | (1) % | 749.9 | 874.0 | (14) % | |
Operating income (loss) | (14.7) | (15.3) | (4) % | 44.7 | 45.7 | (2) % | |
Other income | 6.0 | 4.7 | 28 % | 19.5 | 14.5 | 34 % | |
Interest expense | 15.9 | 14.4 | 10 % | 46.9 | 42.2 | 11 % | |
Income (loss) before income taxes | (24.6) | (25.0) | (2) % | 17.3 | 18.0 | (4) % | |
Income tax (benefit) expense | (7.1) | (7.3) | (3) % | (.3) | — | 100 % | |
Net income (loss) | $ (17.5) | $ (17.7) | (1) % | $ 17.6 | $ 18.0 | (2) % | |
Adjustments: | |||||||
Interest expense | 15.9 | 14.4 | 10 % | 46.9 | 42.2 | 11 % | |
Income tax (benefit) expense | (7.1) | (7.3) | (3) % | (.3) | — | 100 % | |
Depreciation and amortization | 25.0 | 23.9 | 5 % | 76.1 | 70.6 | 8 % | |
EBITDA | $ 16.3 | $ 13.3 | 23 % | $ 140.3 | $ 130.8 | 7 % |
Operating Statistics | Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
Revenues (millions)1,2 | |||||
Retail Sales: | |||||
Residential | $ 62.6 | $ 69.5 | $ 434.7 | $ 516.2 | |
Commercial | 38.5 | 41.0 | 265.1 | 314.6 | |
Industrial | 6.9 | 7.2 | 30.8 | 33.1 | |
108.0 | 117.7 | 730.6 | 863.9 | ||
Transportation and other | 25.6 | 17.3 | 64.0 | 55.8 | |
$ 133.6 | $ 135.0 | $ 794.6 | $ 919.7 | ||
Volumes (MMdk) | |||||
Retail sales: | |||||
Residential | 3.7 | 4.0 | 43.4 | 46.5 | |
Commercial | 3.6 | 3.8 | 30.8 | 32.5 | |
Industrial | 1.0 | .9 | 4.0 | 3.8 | |
8.3 | 8.7 | 78.2 | 82.8 | ||
Transportation sales: | |||||
Commercial | .3 | .3 | 1.3 | 1.4 | |
Industrial | 45.1 | 50.1 | 141.6 | 135.9 | |
45.4 | 50.4 | 142.9 | 137.3 | ||
Total throughput | 53.7 | 59.1 | 221.1 | 220.1 | |
Average cost of natural gas per dk | $ 6.91 | $ 6.85 | $ 5.75 | $ 7.01 | |
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 a seasonal loss of
The natural gas distribution business's EBITDA increased
Pipeline | Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | ||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | ||
(In millions) | |||||||
Operating revenues | $ 51.5 | $ 44.1 | 17 % | $ 155.8 | $ 127.0 | 23 % | |
Operating expenses: | |||||||
Operation and maintenance | 19.0 | 17.0 | 12 % | 56.8 | 52.7 | 8 % | |
Depreciation and amortization | 7.4 | 6.3 | 17 % | 21.8 | 20.0 | 9 % | |
Taxes, other than income | 3.0 | 3.0 | — % | 9.1 | 9.6 | (5) % | |
Total operating expenses | 29.4 | 26.3 | 12 % | 87.7 | 82.3 | 7 % | |
Operating income | 22.1 | 17.8 | 24 % | 68.1 | 44.7 | 52 % | |
Other income | 1.3 | .9 | 44 % | 5.3 | 2.3 | 130 % | |
Interest expense | 3.6 | 3.3 | 9 % | 11.4 | 9.5 | 20 % | |
Income before income taxes | 19.8 | 15.4 | 29 % | 62.0 | 37.5 | 65 % | |
Income tax expense | 4.7 | 3.5 | 34 % | 14.5 | 8.1 | 79 % | |
Income from continuing operations | 15.1 | 11.9 | 27 % | 47.5 | 29.4 | 62 % | |
Discontinued operations, net of tax1 | — | — | — % | — | (.5) | (100) % | |
Net income | $ 15.1 | $ 11.9 | 27 % | $ 47.5 | $ 28.9 | 64 % | |
Adjustments: | |||||||
Interest expense | 3.6 | 3.3 | 9 % | 11.4 | 9.5 | 20 % | |
Interest expense included in discontinued operations, net of tax | — | — | — % | — | .5 | (100) % | |
Income tax expense | 4.7 | 3.5 | 34 % | 14.5 | 8.1 | 79 % | |
Depreciation and amortization | 7.4 | 6.3 | 17 % | 21.8 | 20.0 | 9 % | |
EBITDA | $ 30.8 | $ 25.0 | 23 % | $ 95.2 | $ 67.0 | 42 % | |
1 Discontinued operations includes interest on debt facilities repaid in connection with the Knife River separation. |
Operating Statistics | Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | ||||
2024 | 2023 | 2024 | 2023 | ||
Transportation volumes (MMdk) | 155.1 | 146.9 | 463.5 | 419.2 | |
Customer natural gas storage balance (MMdk): | |||||
Beginning of period | 41.4 | 27.8 | 37.7 | 21.2 | |
Net injection | 13.2 | 15.0 | 16.9 | 21.6 | |
End of period | 54.6 | 42.8 | 54.6 | 42.8 |
The pipeline business reported record third quarter net income of
The pipeline business's EBITDA increased
Construction Services | Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | ||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | ||
(In millions) | |||||||
Operating revenues | $ 761.0 | $ 717.4 | 6 % | $ 2,090.0 | $ 2,218.7 | (6) % | |
Cost of sales: | |||||||
Operation and maintenance | 646.8 | 607.9 | 6 % | 1,762.4 | 1,891.1 | (7) % | |
Depreciation and amortization | 5.1 | 4.7 | 9 % | 14.7 | 13.6 | 8 % | |
Taxes, other than income | 19.2 | 19.9 | (4) % | 59.7 | 71.9 | (17) % | |
Total cost of sales | 671.1 | 632.5 | 6 % | 1,836.8 | 1,976.6 | (7) % | |
Gross profit | 89.9 | 84.9 | 6 % | 253.2 | 242.1 | 5 % | |
Selling, general and administrative expense: | |||||||
Operation and maintenance | 33.6 | 32.6 | 3 % | 100.7 | 94.9 | 6 % | |
Depreciation and amortization | 1.3 | 1.2 | 8 % | 3.8 | 3.7 | 3 % | |
Taxes, other than income | 1.3 | 1.0 | 30 % | 4.8 | 3.9 | 23 % | |
Total selling, general and administrative expense | 36.2 | 34.8 | 4 % | 109.3 | 102.5 | 7 % | |
Operating income | 53.7 | 50.1 | 7 % | 143.9 | 139.6 | 3 % | |
Other income | 4.9 | 2.0 | 145 % | 11.5 | 7.5 | 53 % | |
Interest expense | 2.8 | 4.7 | (40) % | 8.8 | 6.6 | 33 % | |
Income before income taxes | 55.8 | 47.4 | 18 % | 146.6 | 140.5 | 4 % | |
Income tax expense | 14.0 | 11.4 | 23 % | 37.6 | 34.5 | 9 % | |
Income from continuing operations | 41.8 | 36.0 | 16 % | 109.0 | 106.0 | 3 % | |
Discontinued operations, net of tax1 | — | — | — % | — | (5.2) | (100) % | |
Net Income2 | $ 41.8 | $ 36.0 | 16 % | $ 109.0 | $ 100.8 | 8 % | |
Adjustments: | |||||||
Interest expense | 2.8 | 4.7 | (40) % | 8.8 | 6.6 | 33 % | |
Interest expense included in discontinued operations, net of tax | — | — | — % | — | 5.2 | (100) % | |
Income tax expense | 14.0 | 11.4 | 23 % | 37.6 | 34.5 | 9 % | |
Depreciation and amortization | 6.4 | 5.9 | 8 % | 18.5 | 17.3 | 7 % | |
EBITDA | $ 65.0 | $ 58.0 | 12 % | $ 173.9 | $ 164.4 | 6 % | |
1 Discontinued operations includes interest on debt facilities repaid in connection with the Knife River separation. | |||||||
2 2024 results include costs attributable to the Everus separation completed on October 31, 2024 of quarter and |
On Oct. 31, 2024, MDU Resources completed the spinoff of Everus Construction Group, its construction services business, resulting in Everus Construction Group becoming an independent, publicly-traded company. The company's financial results for the third quarter ended Sept. 30, 2024, include Everus Construction Group. As a result of the Oct. 31, 2024 spinoff, future reporting periods will present Everus Construction Group as discontinued operations in the company's Consolidated Financial Statements and prior period results will be restated to reflect the spinoff.
The construction services business reported higher third quarter revenues on both transmission and distribution and electrical and mechanical projects. The increase in transmission and distribution revenues was driven by increased workloads in both the utility and transportation end markets. The utility market had higher workloads in the transmission, underground, telecommunication, and substation submarkets, and the transportation market had higher workloads in the traffic signalization and street lighting submarkets. These increases were partially offset by lower workloads in the distribution submarket. The increase in electrical and mechanical revenues was driven by higher workloads in the commercial and institutional end markets, particularly in the data center submarket, partially offset by decreased workloads in the industrial, service, and renewables submarkets.
The construction services business reported third quarter net income of
The construction services business's EBITDA increased
Other | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | ||
(In millions) | |||||||
Operating revenues | $ 1.4 | $ 1.7 | (18) % | $ 4.3 | $ 6.4 | (33) % | |
Operating expenses: | |||||||
Operation and maintenance | 3.3 | (2.6) | 227 % | 16.3 | 19.4 | (16) % | |
Depreciation and amortization | .5 | 1.0 | (50) % | 1.7 | 3.2 | (47) % | |
Total operating expenses | 3.8 | (1.6) | 338 % | 18.0 | 22.6 | (20) % | |
Operating income (loss) | (2.4) | 3.3 | (173) % | (13.7) | (16.2) | (15) % | |
Unrealized gain on retained shares in | — | 30.2 | (100) % | — | 170.2 | (100) % | |
Other income | 4.2 | 5.8 | (28) % | 13.4 | 10.0 | 34 % | |
Interest expense | 3.5 | 8.6 | (59) % | 10.2 | 12.3 | (17) % | |
Income (loss) before income taxes | (1.7) | 30.7 | (106) % | (10.5) | 151.7 | (107) % | |
Income tax (benefit) expense | (.2) | 3.6 | (106) % | (2.3) | 49.3 | (105) % | |
Income (loss) from continuing operations | (1.5) | 27.1 | (106) % | (8.2) | 102.4 | (108) % | |
Discontinued operations, net of tax | 2.4 | (3.3) | 173 % | 2.3 | (60.0) | 104 % | |
Net income (loss) | $ .9 | $ 23.8 | (96) % | $ (5.9) | $ 42.4 | (114) % | |
Income (loss) from continuing operations | $ (1.5) | $ 27.1 | (106) % | $ (8.2) | $ 102.4 | (108) % | |
Adjustments: | |||||||
Less: Unrealized gain on retained shares in | — | 22.8 | (100) % | — | 113.6 | (100) % | |
Costs attributable to strategic initiatives, net of tax2 | 2.7 | 3.2 | (16) % | 12.7 | 9.8 | 30 % | |
Adjusted income (loss) from continuing operations | $ 1.2 | $ 7.5 | (84) % | $ 4.5 | $ (1.4) | 421 % | |
1 Includes unrealized gain in 2023 of on retained shares in 2 Includes costs attributable to strategic initiatives in 2024 of million year to date. Costs attributable to strategic initiatives in 2023 of tax of |
On May 31, 2023, the company completed the separation of
During the third quarter, Other reported decreased net income compared to the same period in 2023. The decrease was primarily due to the absence of the 2023
Also included in Other are annualized effective 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 do not meet the criteria for discontinued operations.
Other Financial Data | ||
September 30, | ||
2024 | 2023 | |
(In millions, except per share amounts) | ||
(Unaudited) | ||
Book value per common share | $ 15.00 | $ 13.54 |
Market price per common share | $ 27.41 | $ 19.58 |
Market value as a percent of book value | 182.7 % | 144.6 % |
Total assets | $ 8,173 | $ 7,869 |
Total equity | $ 3,058 | $ 2,757 |
Total debt | $ 2,452 | $ 2,648 |
Capitalization ratios: | ||
Total equity | 55.5 % | 51.0 % |
Total debt | 44.5 % | 49.0 % |
100.0 % | 100.0 % |
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SOURCE MDU Resources Group, Inc.
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