MDU Resources Group Inc. Files Q3 2024 10-Q

TL;DR

MDU Resources Q3 2024 10-Q is in. Check financials for regulated & unregulated ops.

AI Summary

MDU Resources Group Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance across its regulated and unregulated operations for the third quarter and the first nine months of the year, comparing them to the same periods in 2023. Specific financial figures for revenue, net income, and other key metrics are presented within the report.

Why It Matters

This filing provides investors with the latest financial performance data for MDU Resources Group Inc., crucial for understanding the company's operational health and investment potential.

Risk Assessment

Risk Level: medium — The filing contains detailed financial data and operational updates, which can reveal both positive and negative trends impacting the company's future performance.

Key Numbers

• Q3 2024 — Reporting Period (Financial results for the third quarter of 2024 are detailed.)
• First Nine Months of 2024 — Year-to-Date Period (Financial results for the period from January 1, 2024, to September 30, 2024, are presented.)
• 2023 — Comparison Period (Financial performance is compared against the same periods in 2023.)

Key Players & Entities

• MDU Resources Group Inc. (company) — Filer of the 10-Q report
• 0000067716 (company) — Central Index Key for MDU Resources Group Inc.
• 20240930 (date) — Conformed period of report
• 20241107 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• mdu-20240930.htm (10-Q) — 2607KB
• a2024q3ex31a.htm (EX-31.A) — 9KB
• a2024q3ex31b.htm (EX-31.B) — 9KB
• a2024q3ex32.htm (EX-32) — 5KB
• 0000067716-24-000107.txt ( ) — 11656KB
• mdu-20240930.xsd (EX-101.SCH) — 58KB
• mdu-20240930_cal.xml (EX-101.CAL) — 96KB
• mdu-20240930_def.xml (EX-101.DEF) — 336KB
• mdu-20240930_lab.xml (EX-101.LAB) — 723KB
• mdu-20240930_pre.xml (EX-101.PRE) — 564KB
• mdu-20240930_htm.xml (XML) — 2307KB

-- Financial Information

Part I -- Financial Information

Financial Statements

Item 1. Financial Statements 6 Consolidated Statements of Income -- Three and Nine Months Ended September 30, 2024 and 2023 6 Consolidated Statements of Comprehensive Income -- Three and Nine Months Ended September 30, 2024 and 2023 7 Consolidated Balance Sheets -- September 30, 2024 and 2023, and December 31, 2023 8 Consolidated Statements of Equity -- Nine Months Ended September 30, 2024 and 2023 9 Consolidated Statements of Cash Flows -- Nine Months Ended September 30, 2024 and 2023 11

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12 1 . Basis of presentation 12 2 . New accounting standards 13 3 . Discontinued operations 14 4 . Seasonality of operations 14 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 26 16 . Employee benefit plans 28 17 . Regulatory matters 29 18 . Contingencies 30 19 . Subsequent event 31

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 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 56

Controls and Procedures

Item 4. Controls and Procedures 56

-- Other Information

Part II -- Other Information

Legal Proceedings

Item 1. Legal Proceedings 57

Risk Factors

Item 1A. Risk Factors 57

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58

Other Information

Item 5. Other Information 58

Exhibits

Item 6. Exhibits 58 Exhibits Index 59

Signatures

Signatures 60 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 Applied Digital Applied Digital Corporation ASC FASB Accounting Standards Codification ASU FASB Accounting Standards Update Big Stone Station 475-MW coal-fired electric generating facility near Big Stone City, South Dakota (22.7 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, formerly 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 DC Circuit Court District of Columbia Circuit Court dk Decatherm EPA United States Environmental Protection Agency Everus Everus Construction Group, Inc., a wholly-owned subsidiary of the Company prior to the separation from 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 prior to the separation from the Company, formerly known as MDU Co

-- Financial Information

Part I -- Financial Information

Financial Statements

Item 1. Financial Statements MDU Resources Group, Inc. Consolidated Statements of Income (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (In thousands, except per share amounts) Operating revenues: Electric, natural gas distribution and regulated pipeline $ 286,053 $ 279,534 $ 1,212,615 $ 1,293,959 Non-regulated pipeline, construction services and other 764,463 721,261 2,099,271 2,228,061 Total operating revenues 1,050,516 1,000,795 3,311,886 3,522,020 Operating expenses: Operation and maintenance: Electric, natural gas distribution and regulated pipeline 101,308 99,295 307,697 296,818 Non-regulated pipeline, construction services and other 685,329 639,363 1,883,850 2,007,978 Total operation and maintenance 786,637 738,658 2,191,547 2,304,796 Purchased natural gas sold 53,377 55,967 406,569 542,848 Electric fuel and purchased power 25,210 28,966 87,543 73,755 Depreciation and amortization 56,160 53,146 167,791 158,877 Taxes, other than income 38,328 39,454 141,939 156,587 Total operating expenses 959,712 916,191 2,995,389 3,236,863 Operating income 90,804 84,604 316,497 285,157 Unrealized gain on retained shares in Knife River — 30,150 — 170,170 Other income 13,838 8,918 42,287 29,251 Interest expense 29,466 32,129 86,780 82,541 Income before income taxes 75,176 91,543 272,004 402,037 Income taxes 13,017 13,325 48,373 92,311 Income from continuing operations 62,159 78,218 223,631 309,726 Discontinued operations, net of tax 2,456 ( 3,289 ) 2,319 ( 65,752 ) Net income $ 64,615 $ 74,929 $ 225,950 $ 243,974 Earnings per share - basic: Income from continuing operations $ .31 $ .38 $ 1.10 $ 1.52 Discontinued operations, net of tax .01 ( .01 ) .01 ( .32 ) Earnings per share - basic $ .32 $ .37 $ 1.11 $ 1.20 Earnings per share - diluted: Income from continuing operations $ .31 $ .38 $ 1.10 $ 1.52 Discontinued operations, net of tax .01 ( .01 ) .01 ( .32 ) Earnings per share - dilute

Financial Statements

Financial Statements September 30, 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 Company's consolidated financial statements and accompanying notes for the current and prior periods present the results of operations of Knife River as discontinued operations, other than certain corporate overhead costs of the Company historically allocated to Kni

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