MDU Resources Group, Inc. Q4 FY2024 earnings call

• 2024 was a transformational year with 100th anniversary, spin-offs of Everus Construction and Knife River.
• Adjusted earnings per share from continuing operations increased 22% to $0.90 per share.
• Pipeline segment achieved record earnings driven by record transportation volumes and storage revenue.
• Electric segment saw earnings growth from rate relief.
• Utility retail customer base grew 1.4%, rate base grew 6.8% in 2024.
• Active in regulatory actions including rate cases in multiple states.
• Pipeline expanded with new projects and open season for Bakken East Pipeline.

Electric Utility: Earnings were $74.8 million in 2024 compared to $71.6 million in 2023. The increase was due to higher retail sales revenue from rate relief, offset by lower volumes and higher O&M expense. Natural Gas: Earnings were $46.9 million in 2024 compared to $48.5 million in 2023. Decrease was due to higher O&M and depreciation expense, partially offset by higher retail sales revenue from rate relief. Pipeline: Posted record earnings of $68 million in 2024, a 45% increase year-over-year, driven by record transportation volumes, higher storage revenue, and new rates effective August 2023. Revenue contributions: Electric Utility, Natural Gas, and Pipeline segments each contributed to the overall results with specific financial figures and growth drivers.

• 2025 EPS guidance in range of $0.88 to $0.98 per share, accounting for non-recurring items and dissynergies from spin-offs.
• Anticipated $3.1 billion capital investment over next five years.
• Utility rate base growth 7%-8%, customer growth 1%-2% annually.
• Long-term EPS growth 6%-8%, dividend payout ratio 60%-70%.

• Risks related to actual results varying from forward-looking statements as per SEC filings.
• Regulatory changes impacting rate cases and recoveries.
• Weather impacts affecting utility volumes and pipeline operations.

Q: How should we interpret the change in guidance around equity issuance from no planned equity until 2027 to no near-term equity issuance?

A: No real change from November, updated capital forecast led to change to no near-term equity issuance but potential for some in 2026 for growth projects.

Q: Could you break down 2025 guidance in more detail, directionally what could get you to high end versus low end?

A: Key drivers include strong storage performance, normal weather impact on utility, rate case activity including Washington Commission update, and data center ECA ramp; storage margins and rate relief timing are key factors in range bounding.