MDU Resources Group Inc (NYSE:MDU)
$ 16.46 1.03 (6.68%) Market Cap: 3.36 Bil Enterprise Value: 5.75 Bil PE Ratio: 8.23 PB Ratio: 1.11 GF Score: 66/100
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Q2 2024 MDU Resources Group Inc Earnings Call Transcript

Aug 08, 2024 / 06:00PM GMT
Release Date Price: $13.82 (-1.81%)

Key Points

Positve
  • MDU Resources Group Inc (MDU) reported record second-quarter earnings in its pipeline segment, driven by unprecedented transportation volumes and increased storage revenues.
  • The company is on track to complete the tax-free spin-off of its Construction Services business, Everus, later this year, with a strong management team in place to drive future growth.
  • MDU Resources Group Inc (MDU) has a long-term guidance forecasting $2.7 billion of regulated capital investment, driving a 7% compound annual growth rate on its utility rate base.
  • The utility business demonstrated solid results despite unfavorable weather, supported by strategic rate adjustments and infrastructure investments.
  • Everus achieved record second-quarter earnings and an all-time record backlog, indicating strong future demand and growth potential.
Negative
  • MDU Resources Group Inc (MDU) experienced a decrease in second-quarter earnings compared to the same period last year, with GAAP earnings dropping from $130.7 million to $60.4 million.
  • The utility business faced challenges due to higher operation and maintenance expenses and cooler weather, negatively impacting electric volumes.
  • The natural gas utility segment reported a seasonal loss, primarily due to higher operation and maintenance expenses and increased depreciation and amortization.
  • Everus reported lower second-quarter revenues due to the timing of projects, impacting overall electrical and mechanical revenues.
  • The company revised its revenue guidance for Everus downward, reflecting lower revenues experienced on a year-to-date basis.
Operator

Hello. My name is Jamie, and I will be your conference facilitator. At this time, I would like to welcome everyone to the MDU Resources Group 2024 second-quarter earnings conference call. (Operator Instructions)

I would now like to turn the conference over to Jason Vollmer, Vice President, Chief Financial Officer and Treasurer of MDU Resources Group. Thank you. Mr. Vollmer, you may begin your conference.

Jason Vollmer
MDU Resources Group Inc - Chief Financial Officer, Vice President, Treasurer

Thank you, Jamie, and welcome, everyone, to our second-quarter 2024 earnings conference call. You can find our earnings release and supplemental materials for this call on our website at www.mdu.com under the Investors tab.

Leading today's discussion with me is Nicole Kivisto, President and CEO of MDU Resources. Also with us today to answer questions following our prepared remarks are Stephanie Sievert, Vice President, Chief Accounting Officer and Controller of MDU Resources; Jeff Thiede,

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