PR Newswire
BISMARCK, N.D., May 2, 2024
BISMARCK, N.D., May 2, 2024 /PRNewswire/ --
MDU Resources Group, Inc. (NYSE: MDU) today reported strong first quarter results from its utility, pipeline and construction services businesses, and it affirmed its 2024 guidance.
"Thanks to the continued dedication and hard work of our employees providing essential services to our customers, we finished the first quarter with strong performance across our businesses," said Nicole A. Kivisto, president and CEO of MDU Resources. "Our regulated pipeline business had outstanding results, with record first quarter transportation volumes and strong demand for its storage services; rate relief and higher electric retail sales volumes contributed to strong utility results; and Everus closed the quarter with record EBITDA and all-time record backlog. With our strong first quarter results, we are affirming our guidance for 2024."
The following table summarizes the company's first quarter results:
| Three months ended March 31, | |
| 2024 | 2023 |
| (In millions, except per share amounts) | |
Net income | 100.9 | 38.3 |
Earnings per share, diluted | 0.49 | 0.19 |
| | |
Income from continuing operations1 | 100.9 | 83.8 |
Earnings per share from continuing operations, diluted1 | 0.49 | 0.41 |
| | |
Adjusted income from continuing operations2,3 | 106.6 | 87.1 |
Adjusted earnings per share from continuing operations, diluted2,3 | 0.52 | 0.43 |
| | |
Regulated energy delivery earnings | 73.1 | 63.8 |
| | |
Construction services | | |
Revenue | 625.7 | 754.3 |
Earnings | 28.2 | 26.1 |
EBITDA3 | 46.9 | 43.5 |
|
1 MDU Resources has reported results and the transaction costs and certain interest expenses associated with the spinoff in 2023 of its construction materials and contracting business as discontinued operations. MDU Resources' prior period results have been restated to reflect the spinoff. |
2 Adjusted income from continuing operations excludes costs associated with MDU Resources' strategic initiatives. |
3 Adjusted income from continuing operations, adjusted earnings per share from continuing operations and EBITDA are non-GAAP financial measures. Additional explanation is provided in the "Non-GAAP Financial Measures" section of this news release. |
"We continue to work toward finalizing the spinoff of Everus Construction Group, expected late this year, as we strive to become a pure-play regulated energy delivery business and shift our focus to our CORE strategy," Kivisto said. Additional information about MDU Resources' CORE strategy can be found in the company's March 13 investor day presentation at www.mdu.com.
Regulated Energy Delivery Highlights
Electric and Natural Gas Utility
The electric and natural gas utility earned $58.0 million in the first quarter of 2024, compared to $55.5 million in the first quarter of 2023. Results were driven by:
The utility, which serves 1.2 million customers, experienced 1.4% customer growth when compared to the first quarter of 2023.
Regulatory update:
The company's new Heskett Unit IV, an 88-megawatt natural gas-fired electric generating facility near Mandan, North Dakota, is expected to be online in the second quarter.
Pipeline
The pipeline had record first quarter earnings of $15.1 million, up 82% compared to $8.3 million in first quarter 2023. Results were driven by:
The pipeline business has a number of growth projects, including:
Construction Services Highlights
Everus had revenues of $625.7 million and earnings of $28.2 million in the first quarter, compared to record quarterly revenues of $754.3 million and earnings of $26.1 million in the first quarter of 2023. The business also had record EBITDA of $46.9 million in the first quarter, compared to EBITDA of $43.5 million in the first quarter of 2023.
Results were driven by:
Everus' backlog was an all-time record $2.18 billion at March 31, compared to $2.10 billion as of March 31, 2023.
As previously announced, MDU Resources is working toward a tax-free spinoff of Everus into a separate, publicly traded company. The spinoff is expected to be complete in late 2024.
Discontinued Operations and Adjusted Earnings
On May 31, 2023, MDU Resources completed the spinoff of Knife River Corporation, which became an independent, publicly traded company. MDU Resources has reported Knife River's results and the transaction costs and certain interest expenses associated with the spinoff as discontinued operations, and MDU Resources' prior period results have been restated to reflect the spinoff.
MDU Resources is reporting adjusted income from continuing operations and adjusted earnings per share that exclude the costs associated with its strategic initiatives. Adjusted income from continuing operations and adjusted earnings per share are non-GAAP measures. The "Non-GAAP Financial Measures" section of this news release explains the earnings adjustments. More information about MDU Resources' strategic initiatives can be found on the company's website at www.mdu.com.
Guidance
Because of MDU Resources' ongoing strategic initiatives, the company is providing guidance for 2024 results by business. Guidance does not include transaction costs associated with the strategic initiatives or costs associated with standing up the construction services business as a public company. For 2024, MDU Resources expects:
The expected 2024 results are based on these assumptions:
Conference Call
MDU Resources' management will discuss on a webcast at 2 p.m. EST today the company's first quarter results. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click on "Q1 2024 Earnings Conference Call." A replay of the webcast will be available at the same location.
About MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400 index, provides essential products and services through its regulated energy delivery and construction services businesses. Founded in 1924, the company is celebrating its 100th anniversary, learn more at www.mdu.com/100th-anniversary. For more information about MDU Resources, visit www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
Media Contact: Laura Lueder, manager of communications and public relations, 701-530-1095
Financial Contact: Brent Miller, assistant treasurer, 701-530-1730
Forward-Looking Statements
The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries and other matters for each of the company's businesses. Many of these highlighted statements and other statements not historical in nature are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, there is no assurance the company's projections, including estimates for growth, shareholder value creation and financial guidance or other proposed strategies such as the pursuit of a tax-free spinoff of its construction services business and proposed future structure of a pure-play regulated energy delivery company will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's most recent Form 10-K and subsequent filings with the Securities and Exchange Commission.
Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
Throughout this news release, the company presents financial information prepared in accordance with GAAP, as well as EBITDA by operating segment, EBITDA from continuing operations, adjusted EBITDA from continuing operations, 2024 EBITDA guidance, adjusted income from continuing operations, and adjusted earnings per share from continuing operations, which are considered non-GAAP financial measures. The use of these non-GAAP financial measures should not be construed as alternatives to earnings, earnings per share, operating income or operating cash flows. The company believes the use of these non-GAAP financial measures are beneficial in evaluating the company's financial performance due to its diverse operations, its impacts related to the non-recurring costs associated with strategic initiatives. Please refer to the "Non-GAAP Financial Measures" section contained in this document for additional information.
Consolidated Statements of Income | | |
| Three Months Ended | |
| March 31, | |
| 2024 | 2023 |
| (In millions, except per share amounts) | |
Operating revenues: | (Unaudited) | |
Electric, natural gas distribution and regulated pipeline | $ 586.0 | $ 673.9 |
Non-regulated pipeline, construction services and other | 627.8 | 756.2 |
Total operating revenues | 1,213.8 | 1,430.1 |
Operating expenses: | | |
Operation and maintenance: | | |
Electric, natural gas distribution and regulated pipeline | 105.7 | 102.0 |
Non-regulated pipeline, construction services and other | 566.2 | 694.5 |
Total operation and maintenance | 671.9 | 796.5 |
Purchased natural gas sold | 258.6 | 371.0 |
Depreciation and amortization Werbung Mehr Nachrichten zur MDU Resources Group Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |