MDU Resources Reports Third Quarter Earnings, Increases Guidance

Income from continuing operations for the same period in 2023 was $309.7 million, or $1.52 per share, compared to $146.9 million, or 72 cents per share, for the nine months ended Sept. 30, 2022.

For the nine months ended Sept. 30, 2023, income from continuing operations when adjusted for the items previously noted was $205.9 million, or $1.01 per share, compared to adjusted income from continuing operations of $146.9 million, or 72 cents per share, for the same period in 2022.

Results at each of MDU Resources' businesses were positively impacted for the first nine months of the year on a noncash basis by higher investment returns on nonqualified benefit plans. Collectively through Sept. 30, the positive earnings variance is approximately $15.9 million, or 8 cents per share, compared to the same period in 2022. The company attributes this change in investment returns to fluctuations in the financial markets.

For an explanation of non-GAAP adjustments, see the "Non-GAAP Financial Measures" section in this news release.

"With the outstanding performance we've seen for the first nine months of the year and continued strength of our operations, we are increasing our guidance for 2023 results," Goodin said.

Regulated Energy Delivery Highlights
Electric and Natural Gas Utility
The electric and natural gas utility earned $3.2 million in the third quarter, compared to $3.5 million in the third quarter of 2022. 

Residential electric use decreased during the quarter with cooler temperatures, however commercial volumes were higher primarily from a data center that came on line earlier this year in the company's service territory. Total electric retail sales volumes were 36.6% higher compared to the same period last year while natural gas retail sales volumes were 9.3% lower.

Higher utility operation and maintenance expense, primarily payroll-related costs, negatively impacted earnings, which was largely offset by rate relief in certain electric and natural gas jurisdictions.

Regulatory update:

• New North Dakota electric rates took effect July 1, as approved June 6 by the North Dakota Public Service Commission, allowing for a 7.4% revenue increase of $15.3 million.
• New Idaho natural gas rates took effect July 1, as approved June 30 by the Idaho Public Utilities Commission, allowing for a 0.73% revenue increase of $3.1 million.
• New Montana electric rates took effect Oct. 1, as approved Aug. 8 by the Montana Public Service Commission, allowing for a 9.1% annual revenue increase of $6.1 million.
• On Aug. 15, the utility filed with the South Dakota Public Utilities Commission an electric rate case requesting a 17.3% revenue increase of $3 million.
• On Aug. 15, the utility filed with the South Dakota Public Utilities Commission a natural gas rate case requesting an 11.2% revenue increase of $7.4 million.
• On Oct. 2, the utility filed with the North Dakota Public Service Commission an electric service agreement request to serve an additional data center in its service territory.
• On Nov. 1, the utility filed with the North Dakota Public Service Commission a natural gas rate case requesting a 7.5% revenue increase of $11.6 million.

The company's new Heskett Unit IV, an 88-megawatt natural gas-fired, simple-cycle combustion turbine electric generating facility near Mandan, North Dakota, is undergoing performance and environmental testing. It is expected to be fully operational before year-end.

Pipeline
The pipeline business had record third quarter earnings of $11.9 million, compared to $9.8 million in the third quarter of 2022. Results were positively impacted by:

• Record quarterly natural gas transportation volumes, largely from increased contracted volume commitments on its North Bakken Expansion project that was placed in service in February 2022.
• Higher storage-related revenues.
• The implementation of new transportation and storage settlement rates, which are pending FERC approval.

The company began construction in the second quarter on three pipeline expansion projects. Two of those projects were placed in service on Nov. 1 and will add natural gas transportation capacity of 119 million cubic feet per day. The third project is expected to be complete in early 2024, adding an additional 175 million cubic feet per day.

Regulatory update:

• The company settled its rate case with customers and FERC staff, and it implemented the new transportation and storage service rates as of Aug. 1. The rates, which are pending final FERC approval, are expected to result in a 7% revenue increase of approximately $10 million on an annual basis.
• On Oct. 19, the company received FERC approval for its Wahpeton Expansion project in eastern North Dakota. The project, expected to cost approximately $75 million, will allow for an additional 20 million cubic feet per day of natural gas transportation capacity. It is supported by long-term customer commitments and is expected to be in service in late 2024.

Construction Services Highlights
The construction services business had record third quarter earnings of $36.0 million, up 29% compared to earnings of $28.0 million in the third quarter of 2022. It also had record EBITDA of $58.0 million in third quarter 2023, compared to EBITDA of $43.9 million in third quarter 2022.

The company experienced continued strong demand for its institutional construction services work, particularly for health care and government clients, as well as higher demand for utility-related transmission and distribution work. Margins increased due to efficiency gains on projects. The earnings increase was somewhat offset by higher labor costs and interest expense.

Backlog for construction services remained strong at $1.85 billion as of Sept. 30, compared to $2.0 billion at Sept. 30, 2022.

Discontinued Operations and Adjusted Earnings
On May 31, 2023, MDU Resources completed a spinoff of approximately 90% of the outstanding shares of its construction materials subsidiary, Knife River Corporation, which became an independent, publicly traded company. MDU Resources has reported Knife River's results and the transaction costs and certain interest expenses associated with the spinoff as discontinued operations, and MDU Resources' prior period results have been restated to reflect the spinoff. The unrealized gains from the retained shares of Knife River's outstanding stock are reported as part of MDU Resources' continuing operations in its Other segment.

MDU Resources is reporting adjusted income from continuing operations that excludes the unrealized gain on the retained shares of Knife River as well as costs associated with MDU Resources' strategic initiatives. Adjusted income from continuing operations is a non-GAAP measure. 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
Because of MDU Resources' strategic initiatives, the company is providing guidance for its 2023 results by business. It also is raising guidance for 2023 as it now expects:

• Earnings from its regulated energy delivery businesses in the range of $155 million to $165 million, up from $150 million to $160 million.
• Construction services revenues in the range of $2.80 billion to $3.00 billion, with higher margins compared to 2022, and EBITDA of $210 million to $230 million, up from $200 million to $225 million.

Conference Call
MDU Resources' management will discuss on a webcast at 2 p.m. EDT today the company's third quarter results and the planned spinoff of MDU Construction Services Group. The webcast can be accessed at www.mdu.com under the "Investor Relations" heading. Select "Events & Presentations," and click on "3Q 2023 Earnings Conference Call." A replay of the webcast will be available at the same location.

MDU Resources also will postpone its Analyst and Investor Day, originally slated for Nov. 21, until late in the first quarter of 2024 to provide more details on the planned spinoff of MDU Construction Services Group.

About MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides essential products and services through its regulated energy delivery and construction services businesses. For more information about MDU Resources, see the company's website at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.

Media Contact: Laura Lueder, manager of communications and public relations, 701-530-1095

Financial Contact: Brent Miller, assistant treasurer, 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 and financial guidance or other proposed strategies, including the pursuit of a tax-advantaged separation of its construction services business and proposed future structure of a pure-play regulated energy delivery company will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's most recent Form 10-K and subsequent filings with the Securities and Exchange Commission.

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.

Throughout this news release, the company presents financial information prepared in accordance with GAAP, as well as EBITDA by operating segment, EBITDA from continuing operations, 2023 EBITDA guidance, adjusted EBITDA from continuing operations, adjusted income from continuing operations, and adjusted earnings per share from continuing operations, which are considered non-GAAP financial measures. The use of these non-GAAP financial measures should not be construed as alternatives to earnings, operating income or operating cash flows. The company believes the use of these non-GAAP financial measures are beneficial in evaluating the company's financial performance due to its diverse operations. Please refer to the "Non-GAAP Financial Measures" section contained in this document for additional information. 

Consolidated Statements of Income
	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2023	2022	2023	2022
	(In millions, except per share amounts)
Operating revenues:	(Unaudited)
Electric, natural gas distribution and regulated pipeline	$        279.5	$        263.8	$    1,294.0	$    1,141.0
Non-regulated pipeline, construction services and other	721.3	738.7	2,228.0	1,978.3
Total operating revenues	1,000.8	1,002.5	3,522.0	3,119.3
Operating expenses:
Operation and maintenance:
Electric, natural gas distribution and regulated pipeline	99.3	89.7	296.8	281.9
Non-regulated pipeline, construction services and other	639.3	677.8	2,008.0	1,795.7
Total operation and maintenance	738.6	767.5	2,304.8	2,077.6
Purchased natural gas sold	56.0	61.8	542.8	444.5
Depreciation, depletion and amortization	53.1	51.8	158.9	158.6
Taxes, other than income	39.5	40.3	156.5	139.3
Electric fuel and purchased power	29.0	20.1	73.8 Werbung Mehr Nachrichten zur MDU Resources Group Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 14:17 - ARIVA.DE Redaktion Minimale Kursveränderung bei Aktie der Deutschen Post (38,77 €) 02:00 - PR Newswire BlackRock Greater Europe Investment Trust Plc - Total Voting Rights 02:00 - PR Newswire Aberforth Split Level Income Trust Plc - Update on planned reconstruction and voluntary winding-up of the Company and further dividend Basin Uranium - Es geht los    Der Uran-Superzyklus ist gestartet! weiterlesen» Anzeige wo-site-teaser-box-16791_site-teaser-box_2024-04-29_07%253A00%253A00_2024-04-30_09%253A00%253A59