MDU Resources Announces Second Quarter 2025 Results; Updates Guidance
- Solid performance in the pipeline segment driven by higher transportation revenue
- Electric utility and natural gas distribution customer base achieves combined targeted growth rate at 1.4% year-over-year
- Data centers drive higher electric retail sales volumes
- 2025 earnings guidance narrowed:
$0.88 to$0.95 per share - Long-term EPS guidance remains unchanged with an expected growth rate of 6%-8%
"We continued our solid start to 2025, despite weather and operating cost challenges that impacted the second quarter results," said
The following summarizes the company's results for the three and six months ended
|
Three Months Ended |
Six Months Ended |
||
|
2025 |
2024 |
2025 |
2024 |
|
(In millions, except per share amounts) |
|||
Net income |
$ 13.7 |
$ 60.4 |
$ 95.7 |
$ 161.3 |
Earnings per share, diluted |
$ .07 |
$ .30 |
$ .47 |
$ .79 |
Income from continuing operations |
$ 14.1 |
$ 20.2 |
$ 96.6 |
$ 95.0 |
Earnings per share from continuing operations, diluted |
$ .07 |
$ .10 |
$ .47 |
$ .47 |
On |
"We've narrowed our full-year earnings guidance, reflecting our view midway through the year," Kivisto added. "Weather conditions and operation and maintenance expense impacted our second quarter results; however, we remain confident in our ability to execute on our long-term growth strategy. We believe our operational focus and financial discipline continue to position us well for delivering safe and reliable energy, customer value and strong stockholder returns."
Electric Utility Segment
Rate Relief and Higher Retail Sales Volumes
Offset by Increased Operation and Maintenance Expense
- Retail sales volumes increased 12.0%, driven by data center demand
- Continued customer growth
- Operation and maintenance costs increased due to higher payroll-related costs and a planned outage
The electric utility segment earned
Electric Utility Regulatory Update:
-
North Dakota : Filed an application for Advanced Determination of Prudence and a Certificate of Public Convenience and Necessity for a 49% ownership interest in theBadger Wind Project , hearing is scheduled forSept. 9, 2025 -
Wyoming : Filed aGeneral Rate Case requesting a$7.5 million annual increase, anticipated to be effectiveMay 1, 2026 -
Montana : An electric general rate case filing is planned for later this year
Natural Gas Distribution Segment
Regulatory Gains Offset by Increased Operation and Maintenance Expense and Unfavorable Weather
- Increased operation and maintenance expense due to higher payroll-related expenses
- Volumes declined due to warmer temperatures
- Rate relief in
Washington andMontana partially offset seasonal losses - Natural gas retail customer count increased 1.5% year-over-year
The natural gas distribution segment reported a seasonal second quarter loss of
Natural Gas Distribution Segment Regulatory Update:
-
Idaho : Filed aGeneral Rate Case requesting$26.5 million annually with a requested effective date ofJan. 1, 2026 -
Montana : Filed a settlement agreement of$7.3 million annually, pendingMontana Public Service Commission approval; interim rates in effect sinceFeb. 1, 2025 -
Washington : A revision to rates submitted onApril 30, 2025 , related to projects that were not placed in service, reducing revenue by$3.7 million , effectiveJune 1, 2025 -
Wyoming : Reached a settlement agreement requesting$2.1 million annually, pending formal approval
Pipeline Segment
Growth Projects Offset by Increased Operation and Maintenance Expense and Absence of a Customer Settlement
- Increased transportation revenue
- Continued strong customer demand for short-term firm transportation capacity
- Higher operation and maintenance expense due to payroll-related costs
The pipeline segment had a strong second quarter, with earnings of
Pipeline Segment Strategic Project Updates:
-
Minot Expansion Project : Construction began inMay 2025 and will add approximately seven million cubic feet of natural gas transportation capacity per day. The project is expected to be in-service in the fourth quarter of this year. -
Bakken East Project : The company is continuing negotiations with interested parties on construction of an approximately 350 mile pipeline from westernNorth Dakota to easternNorth Dakota . The focus is on project timing and volumes to determine the feasibility of the project. The company is actively working with landowners to conduct environmental and civil surveys along the potential route. - Baker Storage and Transportation Expansion: A binding open season for this proposed project concluded in
May 2025 . The company is reviewing results and based on initial feedback is evaluating a smaller project to align with the customer interest received in the open season. - The company continues to pursue several additional growth projects that are in various stages of development.
Guidance
- Normal weather, economic and operating conditions
- Continued growth in utility customers at 1%–2% annually
- No equity issuances in 2025
- Successful execution of approved capital investment and rate recovery plans
Conference Call
About
Investor Contact:
Media Contact: Byron Pfordte, director of integrated communications, 208-377-6050
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events or developments that the company anticipates will or may occur in the future are based on underlying assumptions (many of which are based, in turn, upon further assumptions), including but not limited to, statements identified by the words "anticipates," "estimates," "expects," "intends," "plans," and "predicts," in each case related to such things as growth estimates, stockholder value creation, the company's "CORE" strategy, capital expenditures, financial guidance, trends, objectives, goals, dividend payout ratio targets, strategies and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the company's filings with the
While made in good faith, these forward-looking statements are based largely on the company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond the company's control. For additional discussion regarding risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in the company's most recent Annual Report on Form 10-K, and subsequent filings. Any changes in such assumptions or factors could produce significantly different results. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by applicable law, the company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.
Consolidated Statements of Income |
|
|
|
||
|
Three Months Ended |
|
Six Months Ended |
||
|
|
|
|
||
|
2025 |
2024 |
|
2025 |
2024 |
|
(In millions, except per share amounts) |
||||
|
(Unaudited) |
||||
Operating revenues |
$ 351.2 |
$ 344.5 |
|
$ 1,026.0 |
$ 932.7 |
Operating expenses: |
|
|
|
|
|
Operation and maintenance |
112.8 |
100.0 |
|
223.9 |
207.5 |
Purchased natural gas sold |
96.0 |
94.6 |
|
413.2 |
353.2 |
Electric fuel and purchased power |
34.9 |
36.7 |
|
78.6 |
76.4 |
Depreciation and amortization |
51.8 |
49.7 |
|
103.1 |
99.5 |
Taxes, other than income |
25.3 |
24.0 |
|
64.0 |
59.9 |
Total operating expenses |
320.8 |
305.0 |
|
882.8 |
796.5 |
Operating income |
30.4 |
39.5 |
|
143.2 |
136.2 |
Other income |
9.9 |
10.4 |
|
14.9 |
22.2 |
Interest expense |
25.4 |
26.5 |
|
52.2 |
52.9 |
Income before income taxes |
14.9 |
23.4 |
|
105.9 |
105.5 |
Income tax expense |
.8 |
3.2 |
|
9.3 |
10.5 |
Income from continuing operations |
14.1 |
20.2 |
|
96.6 |
95.0 |
Discontinued operations, net of tax |
(.4) |
40.2 |
|
(.9) |
66.3 |
Net income |
$ 13.7 |
$ 60.4 |
|
$ 95.7 |
$ 161.3 |
|
|
|
|
|
|
Earnings per share – basic: |
|
|
|
|
|
Income from continuing operations |
$ .07 |
$ .10 |
|
$ .47 |
$ .47 |
Discontinued operations, net of tax |
— |
.20 |
|
— |
.32 |
Earnings per share – basic |
$ .07 |
$ .30 |
|
$ .47 |
$ .79 |
Earnings per share – diluted: |
|
|
|
|
|
Income from continuing operations |
$ .07 |
$ .10 |
|
$ .47 |
$ .47 |
Discontinued operations, net of tax |
— |
.20 |
|
— |
.32 |
Earnings per share – diluted |
$ .07 |
$ .30 |
|
$ .47 |
$ .79 |
Weighted average common shares outstanding – basic |
204.3 |
203.9 |
|
204.2 |
203.8 |
Weighted average common shares outstanding – diluted |
205.2 |
204.6 |
|
205.1 |
204.4 |
Selected Cash Flows Information1 |
||
|
Six Months Ended |
|
|
|
|
|
2025 |
2024 |
|
(In millions) |
|
Net cash provided by operating activities |
$ 334.9 |
$ 301.6 |
Net cash used in investing activities |
(174.4) |
(236.0) |
Net cash used in financing activities |
(168.6) |
(48.2) |
(Decrease) increase in cash, cash equivalents and restricted cash |
(8.1) |
17.4 |
Cash, cash equivalents and restricted cash - beginning of year |
66.9 |
77.0 |
Cash, cash equivalents and restricted cash - end of period |
$ 58.8 |
$ 94.4 |
1 Includes cash flows from discontinued operations. |
Capital Expenditures |
|
|
|
|
Business Line |
2025 |
2026 |
2027 |
2025 - |
|
(In millions) |
|||
Electric |
$ 157 |
$ 494 |
$ 205 |
$ 1,181 |
Natural gas distribution |
312 |
258 |
293 |
1,412 |
Pipeline |
70 |
59 |
95 |
474 |
Total capital expenditures1 |
$ 539 |
$ 811 |
$ 593 |
$ 3,067 |
|
|
|
|
|
1 Excludes Other category. |
||||
Note: Total capital expenditures is presented on a net 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.
Electric |
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
||||
|
2025 |
2024 |
Variance |
|
2025 |
2024 |
Variance |
|
(In millions) |
||||||
Operating revenues1,2 |
$ 98.1 |
$ 99.2 |
(1.1) % |
|
$ 210.5 |
$ 207.0 |
1.7 % |
Operating expenses: |
|
|
|
|
|
|
|
Electric fuel and purchased power1 |
34.9 |
36.7 |
(4.9) % |
|
78.6 |
76.4 |
2.9 % |
Operation and maintenance |
29.9 |
23.1 |
29.4 % |
|
58.5 |
46.7 |
25.3 % |
Depreciation and amortization |
17.4 |
16.3 |
6.7 % |
|
34.6 |
32.9 |
5.2 % |
Taxes, other than income |
4.7 |
4.5 |
4.4 % |
|
9.5 |
9.6 |
(1.0) % |
Total operating expenses |
86.9 |
80.6 |
7.8 % |
|
181.2 |
165.6 |
9.4 % |
Operating income |
11.2 |
18.6 |
(39.8) % |
|
29.3 |
41.4 |
(29.2) % |
Other income |
2.7 |
2.0 |
35.0 % |
|
3.7 |
4.0 |
(7.5) % |
Interest expense |
7.6 |
7.2 |
5.6 % |
|
15.5 |
14.7 |
5.4 % |
Income before income taxes |
6.3 |
13.4 |
(53.0) % |
|
17.5 |
30.7 |
(43.0) % |
Income tax benefit2 |
(4.1) |
(2.1) |
95.2 % |
|
(7.9) |
(2.7) |
192.6 % |
Net income |
$ 10.4 |
$ 15.5 |
(32.9) % |
|
$ 25.4 |
$ 33.4 |
(24.0) % |
Operating Statistics |
Three Months Ended |
|
Six Months Ended |
||
|
|
|
|
||
|
2025 |
2024 |
|
2025 |
2024 |
Revenues (millions)1,2 |
|
|
|
|
|
Retail sales: |
|
|
|
|
|
Residential |
$ 28.3 |
$ 31.6 |
|
$ 66.5 |
$ 70.1 |
Commercial |
41.2 |
40.8 |
|
86.4 |
81.1 |
Industrial |
9.1 |
11.8 |
|
17.9 |
22.9 |
Other |
1.8 |
2.1 |
|
3.5 |
3.9 |
|
80.4 |
86.3 |
|
174.3 |
178.0 |
Other |
17.7 |
12.9 |
|
36.2 |
29.0 |
|
$ 98.1 |
$ 99.2 |
|
$ 210.5 |
$ 207.0 |
Volumes (million kWh) |
|
|
|
|
|
Retail sales: |
|
|
|
|
|
Residential |
235.8 |
231.0 |
|
606.5 |
568.1 |
Commercial |
672.7 |
550.9 |
|
1,396.6 |
1,037.4 |
Industrial |
120.0 |
135.1 |
|
236.7 |
275.6 |
Other |
20.1 |
19.2 |
|
40.3 |
39.3 |
|
1,048.6 |
936.2 |
|
2,280.1 |
1,920.4 |
Average cost of electric fuel and purchased |
$ .024 |
$ .030 |
|
$ .025 |
$ .030 |
The previous tables reflect items that are passed through to customers resulting in minimal impact to earnings. These items include: 1 Electric fuel and purchased power costs, which impact both operating revenues and electric fuel and purchased power expense. 2 Production tax credits, which impact income tax benefit and operating revenues. |
The electric business reported net income of
Natural Gas Distribution |
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
||||
|
2025 |
2024 |
Variance |
|
2025 |
2024 |
Variance |
|
(In millions) |
||||||
Operating revenues1,2,3 |
$ 206.9 |
$ 201.5 |
2.7 % |
|
$ 746.2 |
$ 661.0 |
12.9 % |
Operating expenses: |
|
|
|
|
|
|
|
Purchased natural gas sold1 |
105.8 |
103.4 |
2.3 % |
|
456.3 |
392.3 |
16.3 % |
Operation and maintenance2 |
60.5 |
55.0 |
10.0 % |
|
124.1 |
114.3 |
8.6 % |
Depreciation and amortization |
26.5 |
25.5 |
3.9 % |
|
52.6 |
51.0 |
3.1 % |
Taxes, other than income3 |
17.0 |
16.4 |
3.7 % |
|
47.6 |
44.0 |
8.2 % |
Total operating expenses |
209.8 |
200.3 |
4.7 % |
|
680.6 |
601.6 |
13.1 % |
Operating income (loss) |
(2.9) |
1.2 |
(341.7) % |
|
65.6 |
59.4 |
10.4 % |
Other income |
5.1 |
5.4 |
(5.6) % |
|
8.4 |
13.5 |
(37.8) % |
Interest expense |
13.8 |
15.4 |
(10.4) % |
|
28.6 |
31.0 |
(7.7) % |
Income (loss) before income taxes |
(11.6) |
(8.8) |
31.8 % |
|
45.4 |
41.9 |
8.4 % |
Income tax (benefit) expense |
(4.2) |
(3.8) |
10.5 % |
|
8.1 |
6.9 |
17.4 % |
Net income (loss) |
$ (7.4) |
$ (5.0) |
48.0 % |
|
$ 37.3 |
$ 35.0 |
6.6 % |
Operating Statistics |
Three Months Ended |
|
Six Months Ended |
||
|
|
|
|
||
|
2025 |
2024 |
|
2025 |
2024 |
Revenues (millions)1,2,3 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ 106.1 |
$ 108.2 |
|
$ 397.7 |
$ 372.2 |
Commercial |
63.4 |
64.5 |
|
253.0 |
226.6 |
Industrial |
9.4 |
9.3 |
|
25.1 |
23.9 |
|
178.9 |
182.0 |
|
675.8 |
622.7 |
Transportation and other |
28.0 |
19.5 |
|
70.4 |
38.3 |
|
$ 206.9 |
$ 201.5 |
|
$ 746.2 |
$ 661.0 |
Volumes (MMdk) |
|
|
|
|
|
Retail sales: |
|
|
|
|
|
Residential |
8.5 |
9.7 |
|
40.3 |
39.7 |
Commercial |
7.0 |
7.3 |
|
28.9 |
27.2 |
Industrial |
1.0 |
1.2 |
|
2.7 |
3.0 |
|
16.5 |
18.2 |
|
71.9 |
69.9 |
Transportation sales: |
|
|
|
|
|
Commercial |
.3 |
.3 |
|
1.1 |
1.0 |
Industrial |
38.1 |
40.3 |
|
86.5 |
96.5 |
|
38.4 |
40.6 |
|
87.6 |
97.5 |
Total throughput |
54.9 |
58.8 |
|
159.5 |
167.4 |
Average cost of natural gas per dk |
$ 6.42 |
$ 5.69 |
|
$ 6.35 |
$ 5.61 |
The previous tables reflect items that are passed through to customers resulting in minimal impact to earnings. These items include: 1 Natural gas costs, which impact operating revenues and purchased natural gas sold. 2 Conservation, which impacts operating revenues and operation and maintenance expense. 3 Revenue-based taxes that impact both operating revenues and taxes, other than income. |
The natural gas distribution business reported a seasonal loss of
Pipeline |
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
||||
|
2025 |
2024 |
Variance |
|
2025 |
2024 |
Variance |
|
(In millions) |
||||||
Operating revenues |
$ 56.3 |
$ 52.9 |
6.4 % |
|
$ 113.0 |
$ 104.2 |
8.4 % |
Operating expenses: |
|
|
|
|
|
|
|
Operation and maintenance |
22.4 |
19.3 |
16.1 % |
|
41.7 |
37.7 |
10.6 % |
Depreciation and amortization |
7.9 |
7.3 |
8.2 % |
|
15.9 |
14.4 |
10.4 % |
Taxes, other than income |
3.6 |
3.0 |
20.0 % |
|
6.9 |
6.1 |
13.1 % |
Total operating expenses |
33.9 |
29.6 |
14.5 % |
|
64.5 |
58.2 |
10.8 % |
Operating income |
22.4 |
23.3 |
(3.9) % |
|
48.5 |
46.0 |
5.4 % |
Other income |
1.7 |
3.1 |
(45.2) % |
|
2.1 |
3.9 |
(46.2) % |
Interest expense |
4.3 |
3.8 |
13.2 % |
|
8.5 |
7.8 |
9.0 % |
Income before income taxes |
19.8 |
22.6 |
(12.4) % |
|
42.1 |
42.1 |
— % |
Income tax expense |
4.4 |
5.3 |
(17.0) % |
|
9.5 |
9.8 |
(3.1) % |
Net income |
$ 15.4 |
$ 17.3 |
(11.0) % |
|
$ 32.6 |
$ 32.3 |
.9 % |
Operating Statistics |
Three Months Ended |
|
Six Months Ended |
||
|
|
|
|
||
|
2025 |
2024 |
|
2025 |
2024 |
Transportation volumes (MMdk) |
151.4 |
160.7 |
|
294.9 |
308.4 |
Customer natural gas storage balance (MMdk): |
|
|
|
|
|
Beginning of period |
22.1 |
23.4 |
|
44.1 |
37.7 |
Net injection (withdrawal) |
12.5 |
18.0 |
|
(9.5) |
3.7 |
End of period |
34.6 |
41.4 |
|
34.6 |
41.4 |
The pipeline business reported net income of
Other |
|||||||
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
||||
|
2025 |
2024 |
Variance |
|
2025 |
2024 |
Variance |
|
(In millions) |
||||||
Operating revenues |
$ .1 |
$ — |
100.0 % |
|
$ .3 |
$ — |
100.0 % |
Operating expenses: |
|
|
|
|
|
|
|
Operation and maintenance |
.4 |
2.9 |
(86.2) % |
|
.5 |
9.2 |
(94.6) % |
Depreciation and amortization |
— |
.6 |
(100.0) % |
|
— |
1.2 |
(100.0) % |
Taxes, other than income |
— |
.1 |
(100.0) % |
|
— |
.2 |
(100.0) % |
Total operating expenses |
.4 |
3.6 |
(88.9) % |
|
.5 |
10.6 |
(95.3) % |
Operating loss |
(.3) |
(3.6) |
(91.7) % |
|
(.2) |
(10.6) |
(98.1) % |
Other income |
1.6 |
4.3 |
(62.8) % |
|
3.0 |
9.7 |
(69.1) % |
Interest expense |
.9 |
4.5 |
(80.0) % |
|
1.9 |
8.3 |
(77.1) % |
Income (loss) before income taxes |
.4 |
(3.8) |
(110.5) % |
|
.9 |
(9.2) |
(109.8) % |
Income tax (benefit) expense |
4.7 |
3.8 |
23.7 % |
|
(.4) |
(3.5) |
(88.6) % |
Income (loss) from continuing operations |
(4.3) |
(7.6) |
(43.4) % |
|
1.3 |
(5.7) |
(122.8) % |
Discontinued operations, net of tax |
(.4) |
40.2 |
(101.0) % |
|
(.9) |
66.3 |
(101.4) % |
Net income (loss) |
$ (4.7) |
$ 32.6 |
(114.4) % |
|
$ .4 |
$ 60.6 |
(99.3) % |
On
For the second quarter of 2025 Other reported a net loss of
Also included in Other is insurance activity at the company's captive insurer, and general and administrative costs and interest expense previously allocated to the exploration and production and refining businesses that did not meet the criteria for discontinued operations.
Other Financial Data |
|
|
|
|
(In millions, except per |
|
(Unaudited) |
Book value per common share |
$ 13.37 |
Market price per common share |
$ 16.67 |
Market value as a percent of book value |
124.7 % |
Total assets |
$ 6,946 |
Total equity |
$ 2,732 |
Total debt |
$ 2,182 |
Capitalization ratios: |
|
Total equity |
55.6 % |
Total debt |
44.4 % |
|
100.0 % |
View original content to download multimedia:https://www.prnewswire.com/news-releases/mdu-resources-announces-second-quarter-2025-results-updates-guidance-302523694.html
SOURCE