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.

• Successfully spun off Knife River and Everus Construction Group, enhancing focus on core regulated operations.

• Achieved 87 years of uninterrupted dividend payments, reflecting long-term stability.

• Increased stability by exiting gathering and processing services and growing FERC-regulated transportation and storage revenue.

• Approximately 80% of pipeline revenue is now fixed, supported by long-term contracts.

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 is $0.90 to $0.95, assuming normal conditions and continued customer growth.

• Combined rate base grew at an 8% CAGR from 2019 to 2024, with earnings growing at a 9% CAGR.

• Increased capital investment plan to $3.4 billion for 2026-2030, a 34% rise over the previous five-year period.

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

Operational highlights

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

• Owns 736 MW of generation capacity and operates 30,540 miles of transmission and distribution lines.

• Pipeline segment operates 3,800 miles of pipe with 2.9 Bcf/day capacity and the largest storage field in North America.

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

• Major projects include the Badger Wind Farm (49% stake, 122.5 MW) and the Bakken East Pipeline Project.