MDU Resources Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>MDU Resources Group Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

MDU RESOURCES GROUP INC (MDU) filed a Annual Report (10-K) with the SEC on February 22, 2024. MDU Resources Group Inc. filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 1200 West Century Avenue, Bismarck, ND 58503. MDU Resources Group Inc. was formerly known as Montana Dakota Utilities Co. The SIC code for the company is 1400 (Mining, Quarrying of Nonmetallic Minerals (No Fuels)).

Why It Matters

For investors and stakeholders tracking MDU RESOURCES GROUP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of MDU Resources Group's financial health, operational segments, and strategic direction for investors and stakeholders. Understanding the details within this report is crucial for assessing the company's performance, risks, and future prospects in the energy and utility sectors.

Risk Assessment

Risk Level: medium — MDU RESOURCES GROUP INC shows moderate risk based on this filing. The company operates in regulated and unregulated segments, which can be subject to varying economic conditions and regulatory changes impacting profitability and growth.

Analyst Insight

Review the detailed segment performance and any disclosed risks related to regulatory changes or market volatility to inform investment decisions.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting Period)
• 2024-02-22 — Filing Date (Submission Date)
• 175 — Public Document Count (Filing Details)
• 1400 — SIC Code (Industry Classification)

Key Players & Entities

• MDU RESOURCES GROUP INC (company) — Filer
• 0000067716 (company) — Central Index Key
• 1200 WEST CENTURY AVENUE (company) — Business Address Street 1
• BISMARCK (company) — Business Address City
• ND (company) — Business Address State
• 58503 (company) — Business Address Zip
• MONTANA DAKOTA UTILITIES CO (company) — Former Company Name

FAQ

Industry Context

MDU Resources Group operates in the mining, quarrying of nonmetallic minerals sector, with a focus on energy and transportation infrastructure.

Regulatory Implications

The company is subject to SEC regulations for public companies, including the requirement to file annual reports (10-K) detailing financial and operational performance.

What Investors Should Do

1. Analyze the financial statements and management's discussion and analysis within the 10-K for detailed performance metrics.
2. Identify any new or evolving risk factors that could impact MDU Resources Group's operations or financial results.
3. Compare the reported financial figures with previous years to identify trends and assess growth or decline.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing the latest annual financial and operational data for MDU Resources Group Inc.

Key Financial Figures

• $1.00 — ich registered Common Stock, par value $1.00 per share MDU New York Stock Exchange

Filing Documents

• mdu-20231231.htm (10-K) — 4476KB
• a2023ex10ae.htm (EX-10.AE) — 26KB
• a2023ex10af.htm (EX-10.AF) — 6KB
• a2023ex10ag.htm (EX-10.AG) — 8KB
• a2023ex10u.htm (EX-10.U) — 22KB
• a2023ex21.htm (EX-21) — 30KB
• a2023ex23.htm (EX-23) — 2KB
• a2023ex31a.htm (EX-31.A) — 8KB
• a2023ex31b.htm (EX-31.B) — 8KB
• a2023ex32.htm (EX-32) — 6KB
• ex97.htm (EX-97) — 40KB
• mdu-20231231_g1.jpg (GRAPHIC) — 296KB
• mdu-20231231_g10.jpg (GRAPHIC) — 418KB
• mdu-20231231_g2.jpg (GRAPHIC) — 332KB
• mdu-20231231_g3.jpg (GRAPHIC) — 580KB
• mdu-20231231_g4.jpg (GRAPHIC) — 410KB
• mdu-20231231_g5.jpg (GRAPHIC) — 333KB
• mdu-20231231_g6.jpg (GRAPHIC) — 135KB
• mdu-20231231_g7.jpg (GRAPHIC) — 513KB
• mdu-20231231_g8.jpg (GRAPHIC) — 561KB
• mdu-20231231_g9.jpg (GRAPHIC) — 563KB
• 0000067716-24-000017.txt (&nbsp;) — 32303KB
• mdu-20231231.xsd (EX-101.SCH) — 121KB
• mdu-20231231_cal.xml (EX-101.CAL) — 178KB
• mdu-20231231_def.xml (EX-101.DEF) — 778KB
• mdu-20231231_lab.xml (EX-101.LAB) — 1504KB
• mdu-20231231_pre.xml (EX-101.PRE) — 1135KB
• mdu-20231231_htm.xml (XML) — 4178KB

Forward-Looking Statements

Forward-Looking Statements 7 Items 1 and 2 Business and Properties 7 General 7 Electric 11 Natural Gas Distribution 15 Pipeline 17 Construction Services 19 Discontinued Operations 19 Item 1A

Risk Factors

Risk Factors 20 Item 1B Unresolved Staff Comments 29 Item 1C C ybersecurity 29 Item 3

Legal Proceedings

Legal Proceedings 31 Item 4 Mine Safety Disclosures 31 Part II Item 5 Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 Item 6 Reserved 32 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 63 Consolidated Statements of Income 69 Consolidated Statements of Comprehensive Income 70 Consolidated Balance Sheets 71 Consolidated Statements of Equity 72 Consolidated Statements of Cash Flows 73

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 74 1. Basis of Presentation 74 2. Significant Accounting Policies 75 3 . Discontinue d Operations 82 4. Revenue from Contracts with Customers 84 5. Property, Plant and Equipment 87 6. Regulatory Assets and Liabilities 88 7. Environmental Allowances and Obligations 89 8. Goodwill and Other Intangible Assets 90 9. Fair Value Measurements 90 10. Debt 92 11. Leases 95 12. Asset Retirement Obligations 96 13. Equity 96 14. Stock-Based Compensation 97 2 MDU Resources Group, Inc. Form 10-K Contents

(continued) Page

Part II (continued) Page 15. Accumulated Other Comprehensive Loss 99 16. Income Taxes 100 17. Cash Flow Information 101 18. Business Segment Data 102 19. Employee Benefit Plans 105 20. Jointly Owned Facilities 113 21. Regulatory Matters 114 22. Commitments and Contingencies 115 23. Subsequent Events 117 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 120 Item 9A

Controls and Procedures

Controls and Procedures 120 Item 9B Other Information 120 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 120 Part III Item 10 Directors, Executive Officers and Corporate Governance 121 Item 11

Executive Compensation

Executive Compensation 121 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 121 Item 13 Certain Relationships and Related Transactions, and Director Independence 121 Item 14 Principal Account ant Fees and Services 121 Part IV

Exhibits, Financial Statement Schedules

Item 15 Exhibits, Financial Statement Schedules 122 3. Exhibits 127 Item 16 Form 10-K Summary 129

Signatures

Signatures 130 MDU Resources Group, Inc. Form 10-K 3 Definitions The following abbreviations and acronyms used in this Form 10-K are defined below: Abbreviation or Acronym AFUDC Allowance for funds used during construction Army Corps U.S. Army Corps of Engineers ASC FASB Accounting Standards Codification ASU FASB Accounting Standards Update Audit Committee Audit Committee of the board of directors of the Company Bcf Billion cubic feet Big Stone Station 475-MW coal-fired electric generating facility near Big Stone City, South Dakota (22.7 percent ownership) BSSE 345-kV transmission line from Ellendale, North Dakota, to Big Stone City, South Dakota (50 percent ownership) Cascade Cascade Natural Gas Corporation, an indirect wholly owned subsidiary of MDU Energy Capital Centennial CEHI, LLC, a direct wholly owned subsidiary of the Company, formally known as Centennial Energy Holdings, Inc. prior to the separation of Knife River from the Company. References to Centennial's historical business and operations refer to the business and operations of Centennial Energy Holdings, Inc. Centennial Capital Centennial Holdings Capital LLC, a direct wholly owned subsidiary of Centennial CERCLA Comprehensive Environmental Response, Compensation and Liability Act CIO Chief Information Officer Code The U.S. Internal Revenue Code, the highest form of tax law in the United States Company MDU Resources Group, Inc. COVID-19 Coronavirus disease 2019 Coyote Creek Coyote Creek Mining Company, LLC, a subsidiary of The North American Coal Corporation Coyote Station 427-MW coal-fired electric generating facility near Beulah, North Dakota (25 percent ownership) CWIP Construction work in progress, costs associated with the construction of new utility facilities recorded on the balance sheet until these facilities are placed in service. CyROC Cyber Risk Oversight Committee dk Decatherm EBITDA Earnings before interest, taxes, depreciation and amortization E

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 4 MDU Resources Group, Inc. Form 10-K Definitions JETx 345-kV transmission line from Jamestown, North Dakota to Ellendale, North Dakota (50 percent ownership) Knife River Established as Knife River Corporation prior to the separation from the Company, a direct wholly owned subsidiary of Centennial. Knife River refers to Knife River Corporation, during the period prior to separation, now known as "KRC Materials, Inc." Following the separation Knife River refers to Knife River Holding Company, now known as Knife River Corporation. K-Plan Company's 401(k) Retirement Plan kW Kilowatts kWh Kilowatt-hour kV Kilovolts LIBOR London Inter-bank Offered Rate MD&A Management's Discussion and Analysis of Financial Condition and Results of Operations MDU Construction Services MDU Construction Services Group, Inc., a direct wholly owned subsidiary of Centennial MDU Energy Capital MDU Energy Capital, LLC, a direct wholly owned subsidiary of the Company MDUR Newco MDUR Newco, Inc., a public holding company created by implementing the Holding Company Reorganization, now known as the Company MDUR Newco Sub MDUR Newco Sub, Inc., a direct, wholly owned subsidiary of MDUR Newco, which was merged with and into Montana-Dakota in the Holding Company Reorganization MEPP Multiemployer pension plan MISO Midcontinent Independent System Operator, Inc., the organization that provides open-access transmission services and monitors the high-voltage transmission system in the Midwest United States and Manitoba, Canada and a southern United States region which includes much of Arkansas, Mississippi and Louisiana MMcf Million cubic feet MMdk Million dk MNPUC Minnesota Public Utilities Commission Montana-Dakota Montana-Dakota Utilities Co. a direct wholly owned subsidiary of MDU Energy Capital MPPAA Multiemployer Pension Plan Amendments Act of 1980 MTPSC Montana Public Service Commission MW Megawatt NDDEQ North Dakota De

Forward-Looking Statements

Forward-Looking Statements This Form 10-K contains forward-looking statements within the meaning of Section 21E of the Exchange Act. Forward-looking statements are all statements other than statements of historical fact, including without limitation those statements that are identified by the words "anticipates," "estimates," "expects," "intends," "plans," "predicts" and similar expressions, and include statements concerning plans, trends, objectives, goals, strategies, performance or future events, including the dividend payout ratio target, the anticipated separation of its construction services business or the proposed future structure of the Company as a pure-play regulated energy delivery company, and underlying assumptions (many of which are based, in turn, upon further assumptions) and other statements that are other than statements of historical facts. From time to time, the Company may publish or otherwise make available forward-looking statements of this nature, including statements contained within Item 7 - MD&A - Business Segment Financial and Operating Data. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. The Company's expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Nonetheless, the Company's expectations, beliefs or projections may not be achieved or accomplished and changes in such assumptions and factors could cause actual future results to differ materially. Any forward-looking statement contained in this document speaks only as of the date on which the statement is made and, except as required by law, the Company undertakes no obligation to update any forward-looking statement or statements to reflect

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View this 10-K filing on SEC EDGAR