MDU Resources Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>MDU Resources Group Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operational segments.</b>

AI Summary

MDU RESOURCES GROUP INC (MDU) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. MDU Resources Group Inc. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31st. The filing includes financial data for both regulated and unregulated operations. Knife River Corporation was disposed of by means other than sale or spinoff as of May 31, 2023.

Why It Matters

For investors and stakeholders tracking MDU RESOURCES GROUP INC, this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial snapshot of MDU Resources Group Inc., crucial for understanding recent performance and trends. The inclusion of data for both regulated and unregulated operations allows for a comprehensive view of the company's diverse business segments and their respective contributions.

Risk Assessment

Risk Level: low — MDU RESOURCES GROUP INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain significant new risks or disclosures beyond routine updates.

Analyst Insight

Monitor MDU Resources Group Inc.'s financial statements in this 10-Q for trends in regulated vs. unregulated segment performance and any changes in debt structure.

Key Numbers

• 2024-03-31 — Report Date (Conformed Period of Report)
• 2024-01-01 — Quarter Start Date (Reporting period for regulated operations)
• 2023-01-01 — Prior Year Quarter Start Date (Comparative period for regulated operations)
• 2023-05-31 — Disposal Date (Knife River Corporation disposal date)

Key Players & Entities

• MDU RESOURCES GROUP INC (company) — Filer
• 0000067716 (company) — Central Index Key
• 20240331 (date) — Conformed Period of Report
• 20240502 (date) — Filed As Of Date
• Knife River Corporation (company) — Disposed of segment

FAQ

Risk Factors

• Discontinued Operations [medium — operational]: Knife River Corporation was disposed of by means other than sale or spinoff as of May 31, 2023, impacting the company's operational structure.

Industry Context

MDU Resources Group Inc. operates in the energy and utility sector, providing regulated and non-regulated services.

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting (Form 10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the detailed financial statements for Q1 2024, paying attention to revenue and net income trends.
2. Analyze segment performance, particularly the distinction between regulated and unregulated operations.
3. Examine any disclosures related to debt and equity, and cash flow from operations.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q
• 2024-05-02: Filing Date — Date the 10-Q was officially filed with the SEC
• 2023-05-31: Knife River Corporation Disposal — Date Knife River Corporation was disposed of by means other than sale or spinoff

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly update compared to the previous year's filings.

Key Financial Figures

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

Filing Documents

• mdu-20240331.htm (10-Q) — 1920KB
• a2024ex4a.htm (EX-4.(A)) — 876KB
• a2024ex10d.htm (EX-10.(D)) — 14KB
• a2024ex10e.htm (EX-10.(E)) — 7KB
• a2024q1ex31a.htm (EX-31.A) — 9KB
• a2024q1ex31b.htm (EX-31.B) — 9KB
• a2024q1ex32.htm (EX-32) — 5KB
• 0000067716-24-000055.txt (&nbsp;) — 10865KB
• mdu-20240331.xsd (EX-101.SCH) — 57KB
• mdu-20240331_cal.xml (EX-101.CAL) — 117KB
• mdu-20240331_def.xml (EX-101.DEF) — 308KB
• mdu-20240331_lab.xml (EX-101.LAB) — 737KB
• mdu-20240331_pre.xml (EX-101.PRE) — 538KB
• mdu-20240331_htm.xml (XML) — 1712KB

-- Financial Information

Part I -- Financial Information

Financial Statements

Item 1. Financial Statements 6 Consolidated Statements of Income -- Three Ended March 31, 2024 and 2023 6 Consolidated Statements of Comprehensive Income -- Three Months Ended March 31, 2024 and 2023 7 Consolidated Balance Sheets -- March 31, 2024 and 2023, and December 31, 2023 8 Consolidated Statements of Equity -- Three Months Ended March 31, 2024 and 2023 9 Consolidated Statements of Cash Flows -- Three Months Ended March 31, 2024 and 2023 10

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 1 . Basis of presentation 11 2 . New accounting standards 12 3 . Discontinued operations 13 4 . Seasonality of operations 15 5 . Receivables and allowance for expected credit losses 15 6 . Inventories and natural gas in storage 16 7 . Earnings per share 16 8 . Revenue from contracts with customers 17 9 . Leases 19 10 . Regulatory assets and liabilities 20 11 . Environmental allowances and obligations 21 12 . Fair value measurements 21 13 . Debt 24 14 . Cash flow information 25 15 . Business segment data 25 16 . Employee benefit plans 27 17 . Regulatory matters 28 18 . Contingencies 29 19 . Subsequent event 30

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 51

Controls and Procedures

Item 4. Controls and Procedures 52

-- Other Information

Part II -- Other Information

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 54

Other Information

Item 5. Other Information 54

Exhibits

Item 6. Exhibits 54 Exhibits Index 55

Signatures

Signatures 56 2 Index Definitions The following abbreviations and acronyms used in this Form 10-Q are defined below: Abbreviation or Acronym 2023 Annual Report Company's Annual Report on Form 10-K for the year ended December 31, 2023 AFUDC Allowance for funds used during construction ASC FASB Accounting Standards Codification ASU FASB Accounting Standards Update 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 Company MDU Resources Group, Inc. 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 dk Decatherm EPA United States Environmental Protection Agency Everus Everus Construction Group, Inc., a wholly owned subsidiary of the Company that was established in conjunction with the proposed separation of Everus Construction Everus Construction Everus Construction, Inc., a direct wholly owned subsidiary of Centennial, formerly known as MDU Construction Services Group, Inc. prior to March 12, 2024 Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission Fidelity Fidelity Exploration & Production Company, a direct wholly owned subsidiary of WBI Holdings (previ

-- Financial Information

Part I -- Financial Information

Financial Statements

Item 1. Financial Statements MDU Resources Group, Inc. Consolidated Statements of Income (Unaudited) Three Months Ended March 31, 2024 2023 (In thousands, except per share amounts) Operating revenues: Electric, natural gas distribution and regulated pipeline $ 586,017 $ 673,932 Non-regulated pipeline, construction services and other 627,808 756,166 Total operating revenues 1,213,825 1,430,098 Operating expenses: Operation and maintenance: Electric, natural gas distribution and regulated pipeline 105,680 102,041 Non-regulated pipeline, construction services and other 566,237 694,504 Total operation and maintenance 671,917 796,545 Purchased natural gas sold 258,602 371,015 Depreciation and amortization 55,750 52,233 Taxes, other than income 58,992 67,428 Electric fuel and purchased power 32,617 24,356 Total operating expenses 1,077,878 1,311,577 Operating income 135,947 118,521 Other income 13,787 10,374 Interest expense 28,706 23,953 Income before income taxes 121,028 104,942 Income taxes 20,130 21,067 Income from continuing operations 100,898 83,875 Discontinued operations, net of tax — ( 45,522 ) Net income $ 100,898 $ 38,353 Earnings per share - basic: Income from continuing operations $ .50 $ .41 Discontinued operations, net of tax — ( .22 ) Earnings per share - basic $ .50 $ .19 Earnings per share - diluted: Income from continuing operations $ .49 $ .41 Discontinued operations, net of tax — ( .22 ) Earnings per share - diluted $ .49 $ .19 Weighted average common shares outstanding - basic 203,779 203,624 Weighted average common shares outstanding - diluted 204,187 203,910 The accompanying notes are an integral part of these consolidated financial statements. 6 Index MDU Resources Group, Inc. Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, 2024 2023 (In thousands) Net income $ 100,898 $ 38,353 Other comprehensive income: Reclassification adjustment for loss on de

Financial Statements

Financial Statements March 31, 2024 and 2023 (Unaudited) Note 1 - Basis of presentation The accompanying consolidated interim financial statements were prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with those appearing in the 2023 Annual Report. The information is unaudited but includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Depreciation and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses. On May 31, 2023, the Company completed the separation of Knife River, formerly the construction materials and contracting segment, which resulted in two independent, publicly traded companies, MDU Resources Group, Inc. and Knife River. The Company's board of directors approved the distribution of approximately 90 percent of the issued and outstanding shares of Knife River to the Company's stockholders. Stockholders of the Company received one share of Knife River common stock for every four shares of the Company's common stock held on May 22, 2023, the record date for the distribution. The Company retained approximately 10 percent or 5.7 million shares of Knife River common stock immediately following the separation, which were disposed of in a tax-free exchange in November 2023. The separation of Knife River was a tax-free spinoff transaction to the Company's stockholders for U.S. federal income tax purposes. The Company's consolidated financial statements and accompanying notes for the current and prior periods have been restated to present the re

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