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MDU Resources Group, Inc. (NYSE: MDU) is a diversified energy and infrastructure company that plays a vital role in the U.S. economy. Founded in 1924, the company started as a small electric utility serving rural communities in Montana and North Dakota. Today, MDU Resources is a multibillion-dollar corporation providing essential products and services that support energy and transportation infrastructure across the country.
The company operates in five key segments:
- Electric: Generates, transmits, and distributes electricity in Montana, North Dakota, South Dakota, and Wyoming.
- Natural Gas Distribution: Distributes natural gas in the above states as well as Idaho, Minnesota, Oregon, and Washington.
- Pipeline: Offers natural gas transportation and underground storage services through a regulated pipeline system in the Rocky Mountain and Northern Great Plains regions of the U.S.
- Construction Services: Provides a broad range of construction services through its electrical, mechanical, and transmission and distribution specialty contracting services.
- Everus Construction Group: Recently rebranded and expected to spin off as an independent company, offering a full spectrum of construction services across the U.S.
MDU Resources is committed to delivering value-added natural resource products and related services that are vital to energy and transportation infrastructure. Some of the company's recent achievements include:
- Approval of the Wahpeton Expansion project by the Federal Energy Regulatory Commission, allowing for the construction and operation of a natural gas pipeline expansion in eastern North Dakota.
- Completion of a strategic plan to spin off MDU Construction Services Group, Inc., rebranded as Everus Construction Group, to create two independent, publicly traded companies.
- Record earnings from its pipeline and construction services businesses, demonstrating robust growth and performance.
The company's financial condition remains strong, with strategic investments in infrastructure modernization and expansion projects. MDU Resources is poised for continued growth as a pure-play regulated energy delivery business post-spinoff, focusing on providing reliable, affordable services to its 1.2 million customers.
MDU Resources Group, Inc. is a member of the S&P MidCap 400 Index and continues to leverage its nearly century-long legacy of reliable service, innovation, and community commitment to drive shareholder value and economic growth.
MDU Resources Group, Inc. (NYSE: MDU) announced the filing of a Form 10 with the SEC, designating 'KNF' as the ticker for Knife River Corporation. This spinoff intends to create an independent, publicly traded company by the second quarter of 2023. MDU stockholders will receive at least 80.1% of Knife River's shares in a tax-free distribution. MDU may retain up to 19.9% of Knife River shares for debt reduction or further distribution. The separation aligns with MDU's strategy to focus on regulated energy delivery while Knife River will operate as a construction materials business.
MDU Resources Group, Inc. (NYSE: MDU) has appointed a management team for Knife River Corporation, set to lead following its anticipated separation into an independent, publicly traded entity in Q2 2023. Brian R. Gray will assume the role of president and CEO on March 1, succeeding David C. Barney, who will transition to a senior advisor role. The leadership team includes experienced professionals from both Knife River and MDU Resources with deep industry knowledge. MDU aims to enhance shareholder value through this separation, positioning one company for regulated energy delivery and the other for construction materials.
MDU Resources Group has declared a quarterly dividend of 22.25 cents per share on its common stock, consistent with the previous quarter. This dividend will be payable on April 1 to stockholders of record as of March 9, 2023. MDU Resources operates in regulated energy delivery and construction materials and services, and is included in both the S&P MidCap 400 and S&P High-Yield Dividend Aristocrats indices.
MDU Resources Group reported 2022 GAAP earnings of $367.5 million ($1.81 per share), slightly down from $378.1 million in 2021. Adjusted earnings for 2022 were $380.2 million ($1.87 per share). In Q4 2022, GAAP earnings reached $117.1 million (57 cents/share), up from $86.5 million (42 cents/share) in Q4 2021. The company plans to spin off its construction materials subsidiary, Knife River Corporation, and has a backlog of over $3 billion across its construction businesses. Despite operational success, results were impacted by lower investment returns of approximately $21 million for 2022 due to market fluctuations. MDU expects 2023 earnings from energy delivery to be $140 million to $150 million.
MDU Resources Group (NYSE:MDU) announced a cooperation agreement with Corvex Management LP, appointing James H. Gemmel as a non-voting observer to its board, pending FERC approval. The board will expand by one director upon approval, with Gemmel fulfilling the new role. This collaboration aligns with MDU's efforts to spin off its Knife River construction materials business and strategically review MDU Construction Services Group. The anticipated 2023 Annual Meeting of Stockholders is scheduled for May 9, where Gemmel may be nominated for re-election. Corvex's engagement reflects a commitment to enhance shareholder value through these initiatives.
MDU Resources Group (NYSE: MDU) has announced its year-end 2022 earnings conference call, scheduled for February 9, 2023, at 2 p.m. EST. The company will disclose its year-end financial results prior to the opening of U.S. markets on the same day. The earnings call will be available via webcast on MDU's website under the 'Investor Relations' section.
As a member of the S&P MidCap 400 and S&P High-Yield Dividend Aristocrats indices, MDU is engaged in providing essential products and services through its regulated energy delivery and construction materials businesses.
MDU Resources Group has appointed Nathan W. Ring as the new chief financial officer of its subsidiary Knife River Corporation, effective after the planned separation of Knife River, expected in the second quarter of 2023. Ring, currently vice president of business development at Knife River, brings over 20 years of experience within the company. This strategic leadership change aims to strengthen Knife River's financial management ahead of its transition to an independent, publicly traded entity.
MDU Resources Group is advancing its plan to spin off its construction materials business, Knife River Corporation. A confidential draft registration statement has been submitted to the SEC, targeting completion of the spinoff in the second quarter of 2023. This follows the August announcement of the separation intent. The company is also conducting a strategic review of its construction services, expected to finalize in the first half of 2023, with financial advice sourced from J.P. Morgan Securities and PJT Partners.
MDU Resources Group plans to invest $3.5 billion from 2023 to 2027, marking a 27% increase in capital expenditures compared to the past five years. This investment aims to enhance electric transmission, distribution infrastructure, and natural gas transportation systems. The company anticipates a 6%-7% annual growth rate for its electric and natural gas utilities and a 1%-2% growth in customer bases. Key projects include the Jamestown-to-Ellendale transmission project, estimated at $439 million.
MDU Resources Group, Inc. (NYSE: MDU) has announced the appointment of German Carmona Alvarez to its board of directors. Carmona, who serves as global president at John Wood Group PLC, brings extensive experience in digital transformation, finance, and human capital management. His expertise is expected to aid in maximizing shareholder value, particularly during the upcoming spinoff of Knife River Corporation, planned to be tax-free for MDU shareholders in 2023. Carmona will also contribute to the Compensation Committee and Nominating and Governance Committee.
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