MDU Resources Group (MDU) Investor presentation summary

Strategic transformation and business focus

• Transitioning to a pure-play regulated energy delivery company, focusing on core utility and pipeline operations after spinning off construction segments.

• Emphasizing best-in-class customer satisfaction, operational excellence, attractive returns, and employee engagement.

• 86 years of uninterrupted dividend payments and a 100-year company history.

• Distinct investment opportunity as an independent, publicly traded company with a strong regulated business mix.

Financial performance and guidance

• Achieved 8% compound annual growth in both rate base and earnings over the past five years.

• 2024 guidance: regulated energy delivery earnings of $170–$180 million; Everus EBITDA of $220–$240 million.

• Record first quarter results in 2024 across all business segments, with strong cash flow and margin improvements.

• Capital investment of $2.8 billion planned for 2024–2028 to drive rate base growth.

• Targeting 6–8% EPS growth, 7% utility rate base growth, and a 60–70% annual dividend payout ratio.

Operational highlights and growth drivers

• Utility operations serve 1.2 million customers across 8 states, with 648 MW owned generation and 30,400 miles of transmission and distribution lines.

• Pipeline segment operates 3,800 miles of pipe with 2.7 Bcf/day capacity, transporting over 50% of Bakken gas.

• Everus construction group reported record backlog of $2.18 billion and 17% EBITDA CAGR since 2018.

• Growth projects in pipeline and utility segments are supported by long-term contracts and regulatory mechanisms.