MDU Resources Group (MDU) Investor presentation summary

Strategic transformation and business focus

• Completed transition to a pure-play regulated energy delivery company as of October 31, 2024, following successful spinoffs of Knife River and Everus Construction Group.

• Focused on core energy delivery operations, optimizing capital structure and financial policy for regulated business.

• Extensive operational diversification and supportive regulatory environment underpin long-term strategy.

• Experienced management team targets 6-8% long-term EPS growth and a 60-70% annual dividend payout ratio.

Financial performance and guidance

• Achieved solid third quarter 2024 results, with record earnings and transportation volumes in the pipeline segment.

• Increased and narrowed 2024 earnings guidance to $180–$185 million.

• Maintains a strong balance sheet with a 44.5% debt-to-total capitalization ratio and no near-term equity needs.

• Long-term guidance includes $3.1 billion in regulated capital investment, 7-8% utility rate base growth, and 6-8% EPS growth.

Operational highlights and growth drivers

• Serves approximately 1.2 million customers across eight states, with 1.5% customer growth year-over-year.

• Pipeline segment benefits from expansion projects and long-term contracts, with 8% CAGR in combined rate base and earnings since 2018.

• Data center load agreements total 580 MW, with 180 MW online and 400 MW to be phased in over three years.

• Capital investment of $3.1 billion planned for 2025–2029, focusing on safety, reliability, and system expansion.