MDU Resources Group (MDU) Investor presentation summary

Strategic focus and business evolution

• Transitioned to a pure-play regulated energy delivery business, emphasizing operational excellence and customer focus.

• Completed successful spinoffs of Knife River and Everus Construction Group, enhancing core operations.

• Achieved 87 years of uninterrupted dividend payments, reflecting financial stability.

• Increased stability by shifting revenue mix to 80% fixed, driven by long-term contracts in pipeline operations.

• Prioritized investments in safety, reliability, and projects with strong return profiles.

Financial performance and outlook

• Targeting a 6%-8% long-term EPS growth rate and a 60%-70% annual dividend payout ratio.

• 2025 earnings per share guidance set at $0.90 to $0.95, assuming normal conditions and 1%-2% customer growth.

• Combined rate base grew at an 8% CAGR and earnings at a 9% CAGR, outpacing national averages.

• Maintains a strong balance sheet with a 46.4% debt-to-total capitalization ratio and investment-grade credit ratings.

• Capital allocation focuses on regulated earnings and dividend stability.

Operational highlights

• Serves over 1.2 million customers across eight states, with a diversified mix of electric and natural gas services.

• Pipeline operations include 3,800 miles of pipe and the largest storage field in North America.

• 580 MW of data center load under signed agreements, with phased online deployment through 2027.

• Major projects include the Badger Wind Farm and Bakken East Pipeline, supporting renewable growth and gas transport.

• Regulatory environment supports timely rate recovery and growth investments.