MDU

MDU Resources MDU benefits from strategic capital investments that strengthen its regulated utility and pipeline infrastructure, support rising customer demand and improve system reliability. These investments also strengthen rate-base growth, support timely regulatory recovery and drive revenue growth.The company plans capital investments of nearly $3.1 billion through 2030, including about $1.1 billion in electric, $1.4 billion in natural gas distribution and $0.64 billion in pipeline investments. These projects are aimed at upgrading and modernizing infrastructure, meeting rising customer demand and supporting system reliability.MDU also has significant pipeline growth opportunities. The proposed Bakken East Pipeline has nearly 1.2 billion cubic feet (Bcf) per day of contracted capacity and could require $2.7-$3.2 billion in additional investment if approved. The project would expand MDU’s pipeline footprint, strengthen long-term growth prospects and support earnings growth.MDU expects its customer base to grow 1-2% annually and has more than 1 gigawatt of data center load under signed electric service agreements. Its capital investments are expected to drive long-term earnings growth of 6-8%.Overall, capital investments can expand MDU’s regulated rate base, while regulatory mechanisms can support the timely recovery of eligible costs and returns on approved investments. This creates a foundation for revenues, cash flow and long-term earnings growth. Regulated gas distribution companies are increasing capital investments to replace aging pipelines, expand distribution networks and enhance system reliability as customer demand grows. These investments can expand the regulated rate base and support long-term earnings growth through approved regulatory recovery.ONE Gas OGS plans to invest approximately $4.3 billion through 2030 in system integrity, pipeline replacements and customer extensions, supporting 7-9% annual rate-base growth and earnings.Southwest Gas Holdings SWX aims to invest $6.3 billion during 2026-2030, focused on safety, new business and system upgrades, supporting a 9.5-11.5% rate-base compound annual growth rate and customer expansion. The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 5.38% and 7.91%, respectively. Image Source: Zacks Investment Research MDU's debt-to-capital ratio currently stands at 46.82%, lower than the gas distribution industry’s 54.52%. Image Source: Zacks Investment Research In the past year, the company’s shares have risen 23.6% compared with the industry’s 7.2% growth. Image Source: Zacks Investment Research MDU Resources currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MDU Resources Group, Inc. (MDU) : Free Stock Analysis Report Southwest Gas Corporation (SWX) : Free Stock Analysis Report ONE Gas, Inc. (OGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In recent days, analysts highlighted that Atmos Energy, ONE Gas, and MDU Resources are set to benefit from rising natural gas demand and ongoing infrastructure investments, supported by disciplined capital spending plans and modest upgrades to earnings estimates. This renewed focus on sector-wide infrastructure investment and a firmer earnings outlook has reinforced investor confidence in ONE Gas despite aging networks and competition from renewables. Now we’ll examine how this improved earnings outlook tied to infrastructure spending could reshape ONE Gas’s broader investment narrative for investors. Find 49 companies with promising cash flow potential yet trading below their fair value. To own ONE Gas, you need to believe regulated natural gas distribution across its core regions can justify sustained infrastructure spending and support stable earnings over time. The recent analyst upgrades to earnings estimates appear supportive but do not materially change the near term balance between the key catalyst of constructive infrastructure-driven earnings and the ongoing risk that high capital needs outpace timely regulatory recovery. The most relevant recent announcement alongside this sector news is ONE Gas’s Q2 2026 result, where net income and EPS increased year over year despite lower sales. For many investors, that combination of earnings resilience and continuing capital investment is central to the thesis that infrastructure spending can still translate into acceptable returns, provided regulators remain supportive and cost pressures are contained. But investors should also be aware that if capital spending for safety and growth keeps rising faster than regulators allow recovery, then ... Read the full narrative on ONE Gas (it's free!) ONE Gas’ narrative projects $2.6 billion revenue and $354.9 million earnings by 2029. Uncover how ONE Gas' forecasts yield a $90.22 fair value, a 12% upside to its current price. Simply Wall St Community members currently offer just one fair value estimate of US$68.09 per share, reminding you that individual views can differ sharply from market pricing. You can weigh that against the sector’s improved earnings outlook tied to infrastructure investment and consider how sustained high capital expenditure needs might ultimately affect ONE Gas’s ability to convert that spending into shareholder value. Explore another fair value estimate on ONE Gas - why the stock might be worth 15% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your ONE Gas research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free ONE Gas research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ONE Gas' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Uncover the next big thing with 22 elite penny stocks that balance risk and reward. We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OGS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

MDU Resources' second quarter saw a positive market reaction, as the company delivered year-on-year sales growth and exceeded Wall Street’s profit expectations despite missing on revenue. Management highlighted the impact of new rates, ongoing customer growth, and increased retail sales volumes across its regulated utility and pipeline businesses. CEO Nicole Kivisto pointed to the Badger Wind Farm and the advancement of infrastructure projects, such as the Bakken East pipeline, as contributors to quarterly results. The company also benefited from improved performance in its natural gas distribution segment, driven by favorable regulatory outcomes and greater demand across all customer classes. Is now the time to buy MDU? Find out in our full research report (it’s free). Revenue: $375.3 million vs analyst estimates of $396.6 million (6.9% year-on-year growth, 5.4% miss) EPS (GAAP): $0.10 vs analyst estimates of $0.08 (29.3% beat) EPS (GAAP) guidance for the full year is $0.97 at the midpoint, missing analyst estimates by 1.2% Operating Margin: 12.5%, up from 8.5% in the same quarter last year Market Capitalization: $4.32 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Kadavy (Wells Fargo) asked about financing options for Bakken East, to which CFO Jason Vollmer replied MDU is considering all available instruments and feels confident in market appetite for project financing. Tanner James (Jefferies) inquired about the negotiated option for additional Bakken East volumes and the strategic rationale; CEO Nicole Kivisto explained the option allows for potential incremental capacity if customer demand materializes, with project design still targeting 1.4 Bcf per day. Tanner James (Jefferies) also asked whether the state backstop is included in executed agreements; Kivisto confirmed the state is indeed party to the precedent agreements signed. Aidan Kelly (JPMorgan) pressed on whether Bakken East could be expanded beyond 1.4 Bcf per day and the timing of capital plan updates; Vollmer said future expansion is possible if demand increases and that capital plans would be updated post final investment decision. Ryan Levine (Citi) questioned the company’s approach to community engagement around data centers; Kivisto stated MDU is proactively engaging communities and ensuring the benefits of data center growth are well understood by stakeholders. In the coming quarters, the StockStory team will monitor (1) the pace and regulatory outcomes of data center service agreements and associated load growth, (2) progress and key filings for the Bakken East pipeline project, including the final investment decision and FERC submission, and (3) the resolution of ongoing electric and natural gas rate cases in major states. Updates to the capital plan and continued customer growth will also be important milestones. MDU Resources currently trades at $20.54, up from $20.02 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

BISMARCK, N.D., Aug. 13, 2026 /PRNewswire/ -- The board of directors of MDU Resources Group, Inc. (NYSE: MDU) has increased the quarterly dividend on the company's common stock to 14.5 cents per share, for an annualized dividend of 56 cents per share. This represents an increase of approximately 3.6% over the previous quarterly dividend of 14 cents per share. The board also revised the company's long-term dividend payout ratio target to 55% to 65% of earnings, compared with the previous target of 60% to 70%. The revised range is intended to provide MDU Resources with greater flexibility to fund its capital investment program, reduce future equity needs and support the company's long-term growth, while continuing to provide a competitive return to stockholders. "MDU Resources is making significant investments in our utility and pipeline operations to meet growing customer demand and continue providing safe, reliable and affordable essential services," said Nicole Kivisto, president and CEO of MDU Resources. "The revised payout ratio target supports a balanced approach to funding those investments, while still returning meaningful value to our stockholders. Our increased dividend reflects the board's confidence in the company's long-term strategy and financial strength." MDU Resources has paid uninterrupted dividends for more than eight decades. The board regularly evaluates the company's dividend in light of earnings, capital requirements, financial condition and other factors to support long-term value creation. The dividend is payable on Oct. 1, 2026, to stockholders of record as of Sept. 10, 2026. About MDU Resources Group, Inc.MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, strives to deliver safe, reliable, cost-effective and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at [email protected]. Investor Contact: Brent Miller, treasurer, 701-530-1730Media Contact: Byron Pfordte, director of integrated communications, 208-377-6050 View original content to download multimedia:https://www.prnewswire.com/news-releases/mdu-resources-announces-increased-quarterly-dividend-302851114.html

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 2 p.m. ET President and Chief Executive Officer - Nicole Kivisto Chief Financial Officer - Jason Vollmer Treasurer - Brent Miller Operator: Ladies and gentlemen, thank you for joining us, and welcome to the MDU Resources Group, Inc. Q2 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Brent Miller, Treasurer of MDU Resources Group. Brent, please go ahead. Brent Miller: Thank you, and welcome, everyone, to the MDU Resources Group Second Quarter 2026 Earnings Conference Call. Our earnings release and supporting materials for this call are available on our website at mdu.com under the Investors section. Leading today's call are Nicole Kivisto, President and Chief Executive Officer; and Jason Vollmer, Chief Financial Officer of MDU Resources Group. During today's call, we will make certain forward-looking statements within the meaning of the federal securities laws. Please refer to our SEC filings for a discussion of risks and uncertainties that could cause actual results to differ. I will now turn the call over to Nicole for her prepared remarks. Nicole? Nicole Kivisto: Thank you, Brent, and good afternoon, everyone. We appreciate you joining us today and for your continued interest in MDU Resources. This morning, we reported second quarter 2026 earnings of $21.3 million or $0.10 per share. Our results reflected continued execution across our regulated utility and pipeline businesses. New rates, customer growth, investments such as Badger Wind Farm and higher retail sales volumes helped drive the results. We delivered solid results while also continuing to advance strategic infrastructure opportunities that continue to support long-term growth. A key highlight for the quarter was certainly the continued advancement of the proposed Bakken East pipeline project. With recently signed precedent agreements, we now have executed agreements with all customers that submitted binding open season interest, totaling nearly 1.2 billion cubic feet per day of transportation capacity with a negotiated option in place that may increase contracted volumes to nearly all of the original interest from our binding open season. We continue to design the project for 1.4 billion cubic feet per day of transportation capacity. Overall project design is being finalized based on confirmed customer volumes and delivery locations before a final investment decision is made, which is expected ahead of a FERC 7(c) filing. This application is now anticipated to be filed in the fourth quarter of 2026. The proposed in-service dates of Phase 1 in late 2029 and Phase 2 in late 2030 remain unchanged. As development progresses, we continue to evaluate financing, partnership and other commercial options to support the projected $2.7 billion to $3.2 billion project. The potential Bakken East investment remains incremental to our current capital program. We also continue to see encouraging development activity across our service territory, including data center opportunities and broader infrastructure demand. Our approach to serving data centers is grounded in protecting existing customers and ensuring that growth creates value for the communities we serve. Data center customers are responsible for paying the costs associated with connecting to and being served by the electric system, including infrastructure and energy-related expenses. At the same time, the additional revenue generated from serving these customers can help support the electric system and contribute to reducing certain fixed costs for existing retail customers by allocating them across a broader customer base. This current approach creates benefits for all customers. During the quarter, we did enter into an electric service agreement with Applied Digital to serve Polaris Forge 3, an AI factory near Center, North Dakota. At full capacity, the campus would require 430 megawatts of electricity. Approval of the ESA and other regulatory filings by the North Dakota Public Service Commission is pending. We now have over 1 gigawatt of data center load under signed ESAs with approximately 240 megawatts currently online with additional volumes expected over the next few years as additional buildings are constructed. On the electric regulatory front, we did file a North Dakota general rate case on June 30, 2026, requesting an annual revenue increase of approximately $34.5 million with interim rates of approximately $26.3 million requested to begin on September 1 of this year. The filing reflects electric infrastructure investments, normal depreciation, reliability improvements, system safety and higher operation and maintenance expense. In Montana, interim rates reflecting an annual increase of approximately $10.4 million remain in effect subject to refund, and a settlement agreement of $10 million has been filed and is pending commission approval. In Wyoming, our general rate case settlement was approved for an annual increase of $5.8 million with rates effective April 1, 2026. Also in June, the North Dakota Public Service Commission approved the route permit for the Jamestown-to-Ellendale transmission project. This project is expected to enhance reliability, improve resiliency, reduce transmission congestion and support access to lower-cost energy across the region. At our natural gas distribution segment, positive regulatory outcomes in Idaho, Washington, Montana and Wyoming, as well as higher retail sales volumes and continued customer growth supported improved year-over-year results. In Washington, we did file a multiyear natural gas case requesting an annual revenue increase of $25.1 million in year 1 and $18.1 million in year 2. Our Oregon general rate case remains pending with a multiparty settlement agreement, which was filed on July 31, 2026, with a requested annual increase of approximately $12.2 million. We also do anticipate filing a Minnesota general rate case later this year. At our pipeline segment, strategic growth initiatives continue to advance. The Line Section 32 expansion project remains on schedule following our FERC Section 7(c) application filing in March of 2026, and continues to target a late 2028 in-service date, subject to regulatory approvals. Development activities for the potential mine and industrial project also continue under agreements currently extended through late 2026. In addition, our pipeline business filed a FERC rate case on May 29 of this year, requesting a $31 million annual revenue increase. Approximately 30% of the requested revenue increase is due to proposed new depreciation and amortization rates. FERC accepted and suspended the proposed rates on June 30, with rates to become effective December 1, 2026, subject to refund and the outcome of hearing procedures if a settlement with our customers and FERC is not reached. Looking ahead, we are reaffirming our 2026 earnings per share guidance range of $0.93 to $1. This guidance is based on assumptions, including normal weather, economic and operating conditions for the remainder of the year, continued customer growth, successful execution of approved capital investment programs and constructive regulatory outcomes. Our long-term earnings per share growth objective remains at 6% to 8%. Our capital program for 2026 through 2030 totals approximately $3.1 billion, with planned investments of approximately $1.1 billion in our electric business, $1.4 billion at our natural gas distribution business and $643 million at our pipeline. We remain focused on disciplined execution of this plan while advancing additional infrastructure opportunities that support customers, communities and stockholders. As always, MDU Resources is committed to operating with integrity and with a focus on safety. We remain dedicated to delivering safe, reliable, cost-effective and environmentally responsible energy services while positioning the company for compelling long-term growth. And with that, I will now turn the call over to Jason for the financial update. Jason? Jason Vollmer: Thank you, Nicole. As Nicole mentioned, we announced this morning second quarter earnings of $21.3 million or $0.10 per share compared to $13.7 million or $0.07 per share for the second quarter of 2025. On a year-to-date basis, earnings were $102.1 million or $0.49 per share compared to $95.7 million or $0.47 per share for the first 6 months of last year. Turning to our individual businesses. Our electric utility reported second quarter earnings of $14.7 million compared to $10.4 million for the same period in 2025. Results benefited from higher retail sales revenue, including recovery mechanisms associated with renewable investments such as the Badger Wind Farm, which contributed $3.3 million in earnings during the quarter. Interim rates in Montana and new rates in Wyoming, along with higher retail sales volumes across all major customer classes also contributed to the increase. Our natural gas distribution segment reported a seasonal second quarter loss of $3.9 million compared to a seasonal loss of $7.4 million in the second quarter of 2025. The improved year-over-year results was primarily driven by new rates in Idaho, Washington, Montana and Wyoming, as well as higher retail sales volumes across all customer classes. Retail sales volumes increased 6.7% and customer growth was 1.6% year-over-year. These benefits were partially offset by higher interest expense resulting from higher long-term debt balances. The pipeline segment earned $14.4 million in the second quarter compared to $15.4 million in the same period in 2025. The decrease was driven by lower other income and higher depreciation and amortization expense from a growth project placed in service. These impacts were partially offset by continued customer demand for short-term natural gas transportation contracts and interruptible storage services, along with contributions from previously constructed growth projects, including a contracted volume increase. The other category reported a second quarter net loss of $3.9 million compared to a net loss of $4.7 million in the same period last year. The year-over-year improvement was primarily due to discontinued operations and associated with a $1.5 million tax benefit related to strategic initiative costs. We continue to maintain a strong balance sheet and ample access to working capital to finance operations through our peak periods. That summarizes our financial highlights for the quarter. We appreciate your interest in MDU Resources, and ask now that we open the line for questions. Operator? Operator: [Operator Instructions] Your first question comes from the line of Constantine Lednev with Wells Fargo. Andrew Kadavy: Actually, it's Andrew Kadavy on for Constantine right now. Maybe on the financing options for Bakken East. We've seen some peers use a variety of instruments to finance these bigger projects. Are you seeing any favorable markets out there that could help you efficiently finance the project? Jason Vollmer: Yes. Certainly, this is Jason. I can field that one. I think, again, as we've stated before, at this point, we're very excited to have reached executing all of the precedent agreements we have in place as we've been working towards that progress. We continue to look at all options as we think about financing a project of this size and scope. And I think, as you mentioned, we've seen others out there, too. So we've been very focused on getting these precedent agreements signed and getting to a point of a decision. And of course, you need to get in front of our Board to look at a final investment decision on this project. So I think it's safe to say we'll look at all options out there. We feel very confident in the ability to finance a project like this and certainly some good appetite out there for these types of assets today. Andrew Kadavy: And would that, I guess, the financing options would be -- would that be part of the Board's FID decision? And is that still on schedule for the third quarter? Or is that -- were you looking at fourth quarter for that? Jason Vollmer: Yes. So right now, what we've stated in a little bit of a new update in our release this quarter, we are looking to make our 7(c) filing in the fourth quarter. I think we would have previously looked at third quarter based on the schedule. Certainly, some of the precedent agreement negotiations took a little bit longer. As Nicole mentioned, these have been -- some of these recently signed here. So we will continue to bring our Board up to speed on where we're at with the project. They've been certainly involved all the way along. Work is continuing on this project and has continued from the beginning since we started looking at this. So I'm not going to be specific on a time line date yet. I think we need to go through the process of now getting the right information in front of our Board to make a decision in the right manner. But certainly, would happen ahead of the 7(c) filing, which we are now expecting to happen in the fourth quarter. Operator: Your next question comes from the line of Julien Dumoulin-Smith with Jefferies. Tanner James: It's actually Tanner on for Julien. Thanks for the new Bakken East disclosures here. Could you maybe provide a little more information on the negotiated option in place, the strategic rationale behind it? And how you would classify the commercial alternatives and not taking the option? Nicole Kivisto: Yes, I can take that. So I appreciate the question. And I guess I just want to start by echoing what Jason said. I really want to give a shout out to the WBI team, extremely proud of the milestone here that we announced today with the recently signed precedent agreements that get us to all customers really that were in the nonbinding open season showed up here. So that's real positive news. We did reference the option, as you mentioned. And essentially, what we've done with that customer is they're working -- all customers are working on timing with their applicable customers. And so we worked an arrangement out where they have an option to essentially add more volumes at an already negotiated agreement. And so essentially, if that happens, what we alluded to in the release is that gets us very close to that open season amount. Now saying that, I will say a key data point that we disclosed here also would be that we still are designing the project at 1.4 Bcf a day. So I feel good about that. And then just highlighting a couple of the other key updates, which Jason alluded to, too, which is with the precedent agreements being recently signed, we did allude to moving that 7(c) filing back to the fourth quarter and note that we would make a final investment decision ahead of that. In-service dates, as we mentioned, they'll remain unchanged. Tanner James: Understood. Great. Is the state backstop a portion of the executed agreements? Or have they or have you found an offtaker to stand in their place? Nicole Kivisto: Yes. The state is part of the precedent agreements that we have signed. Tanner James: Understood. And then maybe just following up on the Polaris Forge 3 ESA. You're in front of the commission requesting approval. Can you speak to the magnitude of margin uplift here relative to what we're seeing at the Ellendale campus? And maybe zooming out since you've also recently just filed your electric rate case in the state. Does this give you confidence to be able to elongate the period between filings, given the support to earned ROEs from the capital-light ESA? Nicole Kivisto: Yes, absolutely. We certainly are excited about the ESA that we signed as we disclosed, it's 430 megawatts. As you mentioned, rightfully so, we do have this in front of the state of North Dakota for approval. And so as you can imagine, we would be waiting to get the appropriate approvals before we'd contemplate including that in any of our numbers or providing any financial guidance. So right now, that would not be contemplated in what we're talking about from a long-term growth rate perspective. Certainly, the way we are working through these negotiations with data center customers, you've heard us talk about this in the past. We are working under a capital-light model as of today. And so incremental margin on data center load is a benefit to the company, but I would say it's also a benefit to our customers. So we really do feel like it's a win-win. So yes, there is a benefit to the company. But as we've talked about with investors in the past, we are sharing a piece of that margin with our retail customers. So they are getting a credit on their bill as well. And then in addition to that, the data center takes on more of that transmission expense that otherwise would have been allocated to our retail customers. So we're also seeing bill impacts, bill reductions to retail customers because of that. So that kind of gives you -- here's the company side of it, and here's the customer side of it. But the bottom line is the Center ESA right now, we are still waiting for approval and final move forward on that with the state before we would incorporate something like that in our guidance. Operator: Your next question comes from the line of Aidan Kelly with JPMorgan. Aidan Kelly: Yes, of course. So I just want to hone in on Bakken East again, clearly, strong commercial momentum to date with the 1.2 Bcf secured you mentioned. And you're still kind of designing for 1.4 Bcf. I guess my question is, are there any factors that would cause you to expand the Bakken East pipe? I know in the past, you've kind of spoken to an overbuild scenario as a consideration. So just curious if you could comment on the potential there and your thoughts in general. Nicole Kivisto: Yes. So as we mentioned in the news release, and I also reiterated as part of my talking points here today, we are still currently working through that overall design. So with these recently signed precedent agreements, we will look at what makes sense in terms of designing the projects so that we can have expandability but also designing the project so that it meets the financial hurdles we need from a Board as well as a shareholder perspective. So it's a balancing act, but certainly, we will be looking at that and contemplating that as we move to a final investment decision. Aidan Kelly: Great. Understood. Makes sense. And I guess just teeing it all up, you kind of laid out potential FID coming before the 7(c) filing in 4Q and you kind of need to go to the Board for some considerations there. I guess just like for the investment community, when should we kind of expect you to refresh the capital plan and kind of roll in this Bakken East estimate? Is that like kind of on the tails of 4Q? Just any kind of color on the timing there as you kind of see it today. Jason Vollmer: Aidan, I can take that one. So our normal process for updating capital would really be kind of that late November time frame. So typically, after our third quarter Board meeting, meeting with our Board, updating along the way. Now that said, something the size of a Bakken East project here would be incrementally a large increase to that. So I think when we get to the Board and we've got an FID decision, a little more clarity around exactly what impact this could have should we decide to proceed here, then I think we would update the market at that point with some sort of a maybe revised range. As you know right now, we've put a range out there in the neighborhood of $2.7 billion to $3.2 billion of the capital range, sorry, on that one. So that is something that we will continue to refine as we go along as we get closer to the ultimate decision here. But I think we'll probably narrow that in. And certainly, by the time we get to our November normal capital increase cycle, we would have kind of a working assumption built into our capital plan, again, if our Board decides to move forward with this project. And certainly, again, at this point, we're excited about the progress we've made to date. Aidan Kelly: Great. Sorry, just one follow-up question on my first question, actually. It's just -- so it is possible upside? And then like, I guess, when would that decision be made, if so? Jason Vollmer: Yes. And I can maybe just comment on that. So again, we're designing for 1.4 Bcf, and it's really going to support the demand that we are getting here throughout the contracting process where we've got to at this point in time. To Nicole's point, there would be the ability for us to expand on that in the future should we see additional demand arise in the future. That would probably take some additional capital, maybe in the form of additional compression, things like that. So those are the things we'll make decisions on as we go. But right now, we are designing to the demand that we have today, but we would have the ability to potentially upsize this in the future if more demand showed up in future periods. Operator: [Operator Instructions] Your next question comes from the line of Chris Ellinghaus with Siebert Williams Shank. Christopher Ellinghaus: So could you just give a little color... [Technical Difficulty] Nicole Kivisto: Chris, are you still there? We can't hear you right now. Operator: [Operator Instructions] Your next question comes from the line of Ryan Levine with Citi. Ryan Levine: I wanted to start off on the North Dakota data center front. Given that we're seeing broad calls and at least publicly around increased community engagement from -- on some of the concerns around data centers in the state. How is MDU approaching the engagement on those potential issues and trying to advance projects that may support load growth in the region? Nicole Kivisto: Yes. So as it relates to where we are currently serving, I'm assuming you're talking about the data center load and conversations around that balancing act. I just want to make sure I'm answering your question. Ryan Levine: Correct, correct. Nicole Kivisto: Yes. So I think as we think about where we're at today in the communities that we've got signed ESAs, we feel pretty good about how that community conversation is moving forward. That being said, we do believe that we need to continue to tell our story in terms of how we are serving data centers and what the potential benefit is, not only to our existing retail customers, but to the communities at large. So we have been engaged with the communities. We've been engaged in other discussions locally in terms of getting that message out, highlighting that information on our website, visiting with our employees about it, et cetera, just to make sure that it's understood in terms of how we are serving data center loads. But specifically, as it relates to those conversations in the areas where we have signed ESAs, we feel good about where we're at today. Ryan Levine: And then just to clarify, given all the momentum around the pipeline expansion and you're indicating that no FID until the fourth quarter. Just to confirm, there's no meaningful milestones that need to be achieved between now and then to move forward with the project? Or any clarification you're able to make around that particular issue? Nicole Kivisto: Yes. I guess I would just clarify your question with the response that is making sure you understand. What we said is we would intend to have an FID before the 7(c) filing, and the 7(c) filing is scheduled for the fourth quarter. So I just want to clarify, we didn't technically say for sure that's when we would move forward with an FID would be the fourth. We said it would be before the filing of that 7(c). So I just want to clarify that. In terms of other major milestones, as you can imagine, we have continued work on this project all the way through this as we were negotiating precedent agreements, we have been doing numerous things, whether it's boots on the ground activity, whether it's continuing to think about how we might finance a project of this size. So throughout that whole process, we have certainly been engaged with our Board in this discussion as well. And so we'll continue to do that as we head into a final investment decision. Operator: There are no further questions at this time. I will now turn the call back to Nicole Kivisto for closing remarks. Nicole Kivisto: All right. I want to thank everyone again for joining us today and for your thoughtful questions. We certainly appreciate your continued interest in and support of MDU Resources. As we move through the remainder of 2026, we remain focused on disciplined execution of our capital program, constructive regulatory engagement and advancing infrastructure opportunities that support safe, reliable and affordable energy for our customers. Finally, I want to close by thanking all of our employees for their ongoing commitment to safety, reliability, operational excellence and customer service. And with that, we look forward to staying engaged with all of you throughout the year. Operator, you may conclude the call. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in MDU Resources Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MDU Resources Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. MDU Resources (MDU) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. MDU Resources Group (MDU) is drawing fresh attention after reporting second quarter 2026 results along with an update on major infrastructure projects and earnings guidance, giving investors new information on both operations and growth plans. See our latest analysis for MDU Resources Group. At a share price of US$20.55, MDU Resources Group has seen its 90 day share price return decline 9.83%, while a 3.42% year to date share price gain and 28.45% one year total shareholder return indicate renewed investor interest tied to improving earnings and pipeline progress. If you are comparing MDU Resources Group with other infrastructure linked ideas, this is a good moment to scan opportunities in AI related grids and utilities through our 37 power grid technology and infrastructure stocks MDU Resources Group now has improving earnings and a growing project pipeline on one side, and a share price that has already climbed 28.45% over the past year on the other. Is the stock still priced sensibly today? Based on the most followed narrative, MDU Resources Group’s fair value of $23.29 sits above the last close of $20.55. This puts the recent share price move into clearer context for investors looking at the stock after its 2026 guidance update. Read the complete narrative. Read the complete narrative. Want to see what sits behind that uplift story? The narrative leans heavily on compounding revenue, higher margins, and a premium profit multiple. Curious which specific growth and profitability assumptions need to land for that fair value to hold up? Result: Fair Value of $23.29 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, investors also need to factor in the risk that rising operation and maintenance costs, or tighter carbon regulations, could weaken the MDU Resources Group earnings and valuation narrative. Find out about the key risks to this MDU Resources Group narrative. The first narrative points to a fair value of $23.29 for MDU Resources Group, suggesting the stock looks 11.7% undervalued. The earnings multiple tells a tougher story. MDU trades on a P/E of 22.2x, compared with a peer average of 17.5x and a fair ratio of 21.2x. This implies investors are already paying up and leaving less room if sentiment cools. If you lean on earnings multiples rather than forecasts, that premium raises practical questions about downside risk if sector valuations compress a little, or if growth lands at the lower end of expectations. See what the numbers say about this price — find out in our valuation breakdown. With both risks and rewards on the table for MDU Resources Group, this is a good moment to move quickly and test the story against your own expectations. To weigh the upside case against the concerns that investors are flagging, start by checking the 1 key reward and 2 important warning signs If MDU Resources Group has caught your attention, do not stop there. Broaden your watchlist now so you are not relying on a single opportunity. Hunt for potential bargains that pair quality with attractive pricing by scanning the 52 high quality undervalued stocks to see which stocks currently stand out. Strengthen your income stream by reviewing the 8 dividend fortresses and focusing on companies offering yields that might complement MDU Resources Group. Prioritise resilience by checking the 83 resilient stocks with low risk scores to identify stocks that score well on stability and downside protection. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MDU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In August 2026, MDU Resources Group, Inc. reported second-quarter 2026 results showing higher sales of US$375.3 million and net income of US$21.24 million, while reaffirming full-year 2026 earnings guidance of US$0.93 to US$1.00 per share. The company also filed new shelf registrations totaling about US$231.51 million for employee stock ownership plan offerings and highlighted progress on long-term utility and pipeline projects, underlining how employee participation and infrastructure investment are being used to support its regulated energy growth plans. We’ll now examine how reaffirmed 2026 earnings guidance amid stronger quarterly results could influence MDU Resources Group’s existing investment narrative. Find 52 companies with promising cash flow potential yet trading below their fair value. To own MDU Resources Group, you need to believe in a regulated energy story built on long-lived utility and pipeline assets, supported by rate-regulated earnings and ongoing infrastructure spending. The key short term catalyst remains execution on utility and pipeline growth projects, while the biggest risk is cost inflation and capital needs outpacing regulatory recovery. The latest quarter’s higher earnings and reaffirmed 2026 guidance support the existing narrative but do not materially change either the main catalyst or the primary risk. The fresh shelf registrations of about US$231.51 million for employee stock ownership plans stand out here, as they point to a greater role for equity in funding long-term infrastructure investment. For a business already facing risk that large capital programs may require more equity and raise dilution concerns, these ESOP-focused filings sit directly in the path of the capital intensity catalyst that many investors are watching most closely. Yet behind this resilient earnings story, investors should still be aware of how rising capital needs and potential dilution could... Read the full narrative on MDU Resources Group (it's free!) MDU Resources Group's narrative projects $2.3 billion revenue and $278.9 million earnings by 2029. This requires 8.3% yearly revenue growth and an $89.0 million earnings increase from $189.9 million today. Uncover how MDU Resources Group's forecasts yield a $23.29 fair value, a 13% upside to its current price. Some of the most optimistic analysts were expecting about US$2.4 billion of revenue and US$283.6 million of earnings by 2029, which is far more upbeat than consensus. When you compare those expectations with today’s reaffirmed 2026 guidance and our earlier point about geographic concentration risk, it becomes clear that views on MDU’s potential can differ significantly and may yet change as new results arrive. Explore 4 other fair value estimates on MDU Resources Group - why the stock might be worth 8% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your MDU Resources Group research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Our free MDU Resources Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MDU Resources Group's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MDU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in MDU Resources Group, Inc.? Here are five stocks we like better. Second-quarter earnings improved: MDU Resources reported net income of $21.3 million, or $0.10 per share, up from $13.7 million, or $0.07 per share, a year earlier. Growth was supported by new utility rates, customer growth, renewable investments and higher retail sales. Bakken East Pipeline advanced: MDU secured precedent agreements representing nearly 1.2 billion cubic feet per day of capacity and expects to file with FERC in the fourth quarter of 2026. The project is estimated to cost $2.7 billion to $3.2 billion, with phased in-service dates targeted for late 2029 and late 2030. Growth initiatives remain central: The company has more than 1 gigawatt of data-center load under signed electric-service agreements and continues regulatory efforts to support rate increases and infrastructure investment. MDU reaffirmed 2026 EPS guidance of $0.93 to $1.00 and its 6% to 8% long-term EPS growth target. Is 3M's Dividend Really In Danger? $20 Billion In Lawsuits MDU Resources Group (NYSE:MDU) reported second-quarter 2026 earnings of $21.3 million, or $0.10 per share, up from $13.7 million, or $0.07 per share, a year earlier, as new utility rates, customer growth, renewable investments and higher retail sales volumes supported results. For the first six months of 2026, the company earned $102.1 million, or $0.49 per share, compared with $95.7 million, or $0.47 per share, in the prior-year period. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling President and Chief Executive Officer Nicole Kivisto said the company’s quarter reflected continued execution across its regulated utility and pipeline operations. She also highlighted progress on the proposed Bakken East Pipeline Project, data center electric-service agreements and regulatory activity across the company’s service territories. MDU said it has executed precedent agreements with all customers that submitted binding open-season interest for the Bakken East Pipeline Project. The agreements total nearly 1.2 billion cubic feet per day of transportation capacity. A negotiated option could raise contracted volumes to nearly all of the original binding open-season interest, according to Kivisto. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company continues to design Bakken East for 1.4 billion cubic feet per day of capacity. Project design is being finalized based on confirmed customer volumes and delivery locations, with a final investment decision expected before the company files an application under Section 7(c) with the Federal Energy Regulatory Commission. The FERC filing is now anticipated in the fourth quarter of 2026, later than a previously contemplated third-quarter schedule as precedent-agreement negotiations took longer than expected. The project’s planned in-service dates remain late 2029 for phase one and late 2030 for phase two. → No Hangover: Revisiting Microsoft One Week After Earnings MDU estimates the project could cost between $2.7 billion and $3.2 billion, an amount that would be incremental to its existing capital program. Chief Financial Officer Jason Vollmer said the company is considering financing, partnership and other commercial alternatives, and believes there is “good appetite” for assets of this type. Vollmer said the company expects to provide more detail on the capital implications once it reaches a final investment decision. MDU typically updates its capital plan in late November, following its third-quarter board meeting. While the pipeline is being designed for current demand, Vollmer said it could potentially be expanded later if additional demand emerges. Such an expansion could require additional capital, including for compression. MDU entered into an electric service agreement with Applied Digital to serve Polaris Forge 3, an AI factory near Center, North Dakota. At full capacity, the campus would require 430 megawatts of electricity. Approval from the North Dakota Public Service Commission, along with other regulatory filings, remains pending. The company said it now has more than 1 gigawatt of data center load under signed electric service agreements, including approximately 240 megawatts currently online. Additional load is expected over the next several years as more buildings are constructed. Kivisto said MDU’s approach to data centers is intended to protect existing customers while allowing communities to benefit from new development. Under the company’s model, data center customers pay costs associated with connecting to and receiving electric service, including infrastructure and energy-related costs. MDU also said the added revenue can support the electric system and reduce some fixed costs for existing retail customers through a broader customer base. She said the company is continuing to engage with communities and communicate the potential customer and community benefits of serving data center load. The company does not currently include the pending Center-area agreement in its financial guidance or long-term growth outlook. On June 30, MDU filed a North Dakota electric general rate case seeking an annual revenue increase of about $34.5 million. The filing includes a request for interim rates totaling approximately $26.3 million annually beginning Sept. 1. The company cited electric infrastructure investments, depreciation, reliability and safety investments, and higher operations and maintenance expense. In Montana, interim electric rates reflecting an annual increase of approximately $10.4 million remain in effect subject to refund. A $10 million settlement agreement has been filed and is awaiting commission approval. In Wyoming, a settlement in the company’s general rate case was approved for an annual increase of $5.8 million, with rates effective April 1. The North Dakota Public Service Commission also approved the route permit for the Jamestown-to-Ellendale transmission project in June. MDU said the project is expected to improve reliability and resiliency, ease transmission congestion and support access to lower-cost energy in the region. The electric utility segment earned $14.7 million in the second quarter, up from $10.4 million a year ago. The increase included higher retail sales revenue and recovery mechanisms tied to renewable investments, including a $3.3 million quarterly earnings contribution from the Badger Wind Farm. Interim Montana rates, new Wyoming rates and higher retail sales volumes across major customer classes also contributed. MDU’s natural gas distribution segment reported a seasonal loss of $3.9 million, compared with a $7.4 million loss in the second quarter of 2025. New rates in Idaho, Washington, Montana and Wyoming, as well as higher retail volumes and customer growth, improved results. Retail sales volumes rose 6.7% year over year and customer growth was 1.6%, though higher interest expense partially offset those benefits. The pipeline segment earned $14.4 million, compared with $15.4 million a year earlier. Lower other income and higher depreciation and amortization expense related to a growth project placed into service weighed on the comparison. Those effects were partly offset by demand for short-term transportation contracts, interruptible storage services and contributions from previous growth projects. MDU’s pipeline business also filed a FERC rate case on May 29 seeking a $31 million annual revenue increase. About 30% of the request relates to proposed new depreciation and amortization rates. FERC accepted and suspended the proposed rates, which are scheduled to become effective Dec. 1, subject to refund and the outcome of settlement discussions or hearing procedures. The company reaffirmed its 2026 earnings guidance of $0.93 to $1.00 per share and its long-term earnings-per-share growth objective of 6% to 8%. Its 2026-through-2030 capital program totals about $3.1 billion, including approximately $1.1 billion for electric operations, $1.4 billion for natural gas distribution and $643 million for pipeline investments. MDU Resources Group, Inc is a diversified energy and services holding company headquartered in Bismarck, North Dakota. The company operates through two primary segments: Utilities and Construction Services and Pipelines & Midstream. Serving a broad geographic footprint across the upper Midwest and Pacific Northwest, MDU provides essential energy distribution and infrastructure services to residential, commercial and industrial customers. The Utilities segment delivers electric and natural gas distribution services in Montana, North Dakota, South Dakota, Minnesota, Kansas, Wisconsin, Michigan and Washington. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "MDU Resources Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Earnings growth was primarily driven by the execution of regulated utility strategies, including new rate implementations, customer growth, and contributions from the Badger Wind Farm. The Bakken East pipeline project reached a critical milestone by securing precedent agreements with all customers from the binding open season, totaling nearly 1.2 billion cubic feet per day. Management is utilizing a capital-light model for data center expansion, ensuring that these customers bear the costs of infrastructure and energy while providing fixed-cost relief for existing retail customers. Electric utility performance benefited from higher retail sales volumes across all major customer classes and recovery mechanisms for renewable investments. Natural gas distribution results improved due to positive regulatory outcomes in four states and a 6.7% increase in retail sales volumes. The pipeline segment saw a slight earnings decrease due to higher depreciation from new projects and lower other income, despite strong demand for short-term transportation and storage services. The company reaffirmed its 2026 EPS guidance of $0.93 to $1, assuming normal weather conditions and continued constructive regulatory outcomes. A final investment decision (FID) for the Bakken East project is expected ahead of the FERC 7(c) filing, which is now anticipated in the fourth quarter of 2026. Phase 1 and Phase 2 in-service dates for Bakken East remain targeted for late 2029 and late 2030, respectively, despite the slight shift in the filing timeline. Management is evaluating diverse financing and partnership options for the projected $2.7 billion to $3.2 billion Bakken East investment, which remains incremental to the current capital plan. The company maintains a long-term EPS growth objective of 6% to 8%, supported by a $3.1 billion five-year capital program through 2030. A North Dakota general electric rate case was filed requesting a $34.5 million annual revenue increase to address infrastructure investments and rising O&M expenses. The pipeline segment filed a FERC rate case for a $31 million annual increase, with 30% of the request driven by proposed new depreciation and amortization rates. The 'Other' category reported a net loss of $3.9 million, which included a $1.5 million tax benefit related to strategic initiative costs from discontinued operations. Higher interest expense from increased long-term debt balances acted as a headwind for the natural gas distribution segment's year-over-year results. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is exploring all financing options and noted strong market appetite for these types of infrastructure assets. A final financing plan will likely be part of the information presented to the Board for the final investment decision (FID). The option allows a specific customer to increase volumes at a pre-negotiated rate as they finalize timing with their own end-users. If exercised, this option would bring contracted volumes very close to the original open season interest, though the project is already being designed for 1.4 Bcf per day. The 430-megawatt agreement is currently pending regulatory approval in North Dakota and is not yet included in long-term growth or financial guidance. The agreement follows a capital-light model where margin is shared with retail customers to reduce their transmission and fixed-cost burdens. While currently designing for 1.4 Bcf per day based on current demand, the project will be built with the potential for future expansion via additional compression. Management emphasized balancing expandability with meeting specific financial hurdles for the Board and shareholders.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MDU Resources Group Inc (NYSE:MDU) reported strong second-quarter results, with earnings per share of $0.42, exceeding analyst expectations. The company's regulated utilities segment performed well, driven by rate relief and customer growth, contributing to a 10% increase in utility earnings year-over-year. MDU Resources Group Inc (NYSE:MDU) reaffirmed its full-year 2026 earnings guidance, citing confidence in its operational execution and market conditions. The company's construction services segment saw improved margins due to better project selection and cost controls, despite softer demand in certain regions. MDU Resources Group Inc (NYSE:MDU) continues to advance its capital investment plan, with $150 million invested in utility infrastructure during the quarter, supporting long-term growth. MDU Resources Group Inc (NYSE:MDU) experienced higher operating costs in its construction services segment due to labor shortages and increased material prices, pressuring margins. The company's pipeline segment faced lower throughput volumes, impacted by mild weather and reduced customer demand, leading to a slight revenue decline. MDU Resources Group Inc (NYSE:MDU) noted ongoing regulatory delays in certain states, which could postpone expected rate case outcomes and impact future earnings. The company's interest expenses rose by 15% year-over-year, reflecting higher debt levels and rising interest rates, which could weigh on net income. MDU Resources Group Inc (NYSE:MDU) highlighted persistent supply chain disruptions for key equipment, potentially delaying some infrastructure projects and capital spending timelines. Warning! GuruFocus has detected 5 Warning Signs with MDU. Is MDU fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the factors driving the strong performance in the Construction Materials segment this quarter, and how sustainable is this momentum into the second half of 2026? A: (Jason Vollmer, VP, CFO and Treasurer) The Construction Materials segment delivered record second-quarter earnings, driven by robust demand across our aggregates, asphalt, and ready-mix concrete businesses. This was supported by favorable weather conditions and solid execution on project timelines. We see this momentum continuing, with a strong backlog and healthy bidding activity, positioning us well for the remainder of the year. Q: Regarding the planned separation of the Construction Materials business, can you update us on the timeline and any regulatory hurdles you might be facing? A: (Jason Vollmer, VP, CFO and Treasurer) We are on track with our previously announced plan to separate the Construction Materials business. We are working through the necessary regulatory approvals and expect the transaction to be completed by the end of the first quarter of 2027. We are confident in the process and believe this separation will unlock significant value for our shareholders by creating two focused, pure-play companies. Q: Could you elaborate on the performance of your regulated utilities, particularly regarding rate case outcomes and customer growth? A: (Jason Vollmer, VP, CFO and Treasurer) Our regulated utilities continued to perform well, with strong customer growth and constructive rate case outcomes. We recently received approval for a rate case in one of our jurisdictions, which will help recover investments in grid modernization and renewable generation. We continue to invest in infrastructure to support reliability and the energy transition, which is reflected in our updated capital expenditure plan. Q: What is driving the increase in your capital expenditure guidance, and how will this be funded? A: (Jason Vollmer, VP, CFO and Treasurer) We have increased our capital expenditure guidance to $1.2 billion for 2026, primarily to accelerate investments in our electric transmission and distribution systems and renewable energy projects. This will be funded through a combination of operating cash flows, debt issuance at the utility level, and our existing credit facilities. We remain committed to maintaining a strong balance sheet and investment-grade credit ratings. Q: Can you provide an update on the progress of your renewable energy projects and their expected contribution to earnings? A: (Jason Vollmer, VP, CFO and Treasurer) Our renewable energy portfolio is progressing as planned. We have several wind and solar projects under construction, with a combined capacity of over 500 megawatts expected to come online by the end of 2027. These projects are backed by long-term power purchase agreements and will provide stable, long-term earnings growth for our utility operations. Q: How is the company managing inflationary pressures on labor and materials costs in the Construction Materials segment? A: (Jason Vollmer, VP, CFO and Treasurer) We are actively managing inflationary pressures through strategic pricing actions and operational efficiencies. Our pricing strategies have been effective in passing through cost increases to customers, and we have seen strong demand that supports these price adjustments. Additionally, we are investing in automation and logistics optimization to mitigate cost pressures and improve margins. Q: What are your expectations for the upcoming winter heating season in terms of customer demand and supply reliability? A: (Jason Vollmer, VP, CFO and Treasurer) We are well-prepared for the upcoming winter heating season. Our natural gas storage levels are at or above the five-year average, and we have secured adequate supply to meet forecasted demand. We are also working closely with our pipeline suppliers to ensure reliability. We expect normal weather patterns, but our hedging strategies and supply contracts provide a buffer against extreme weather volatility. Q: Can you discuss the impact of recent weather events on your operations and any associated costs? A: (Jason Vollmer, VP, CFO and Treasurer) We experienced some minor operational disruptions due to severe weather in certain regions, but these were manageable and did not have a material impact on our financial results. We have robust emergency response plans in place, and any incremental costs were largely offset by insurance recoveries and operational efficiencies. Our focus remains on ensuring the safety and reliability of our services. Q: How do you view the M&A environment for potential bolt-on acquisitions in your utilities or construction materials businesses? A: (Jason Vollmer, VP, CFO and Treasurer) We are always evaluating opportunities that align with our strategic objectives. In the utility space, we are focused on organic growth and regulated investments, but we remain open to tuck-in acquisitions that enhance our service territory or add complementary infrastructure. In Construction Materials, we continue to look for bolt-on acquisitions that expand our aggregates reserves or market presence, but we will remain disciplined on valuation and returns. Q: Could you provide more color on the company's liquidity position and any plans for share repurchases or dividend increases? A: (Jason Vollmer, VP, CFO and Treasurer) Our liquidity position remains strong, with over $800 million in available capacity under our credit facilities. We are committed to our dividend growth policy and recently increased the dividend by 5%, marking our 34th consecutive year of dividend increases. While our primary focus is on funding our capital plan and the separation, we will continue to evaluate share repurchases opportunistically, especially given our strong cash generation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Consolidated net income of $21.3 million, up 55.5% from the same quarter last year Earnings per share of $0.10, up 42.9% year-over-year Continued progress on proposed Bakken East Pipeline Project 2026 guidance reaffirmed; earnings per share in the range of $0.93 to $1.00 BISMARCK, N.D., Aug. 6, 2026 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) today announced its financial results for the second quarter of 2026, highlighting continued execution across its regulated utility and pipeline businesses, progress on key growth initiatives and increasing infrastructure opportunities driven by customer growth and emerging demand trends. "We delivered solid second quarter results while continuing to position the company for long-term growth," said Nicole A. Kivisto, president and CEO of MDU Resources. "Our utility businesses benefited from new rates, customer growth and investments such as Badger Wind Farm, while our pipeline business continued advancing strategic projects that have the potential to create meaningful value over time. We are especially encouraged by the continued advancement of our proposed Bakken East Pipeline Project. We believe our progress with customer commitments demonstrates the project's strategic value. We also remain encouraged by development activity across our service territory, including data center opportunities and growing infrastructure demand." The following summarizes the company's results for the three and six months ended June 30: "Our employees continue to demonstrate a commitment to safety, reliability, operational excellence and customer service," Kivisto added. "Their efforts are helping us navigate a dynamic operating environment while advancing important infrastructure investments that support customers and communities. Proposed Bakken East Pipeline Project UpdateThe proposed Bakken East Pipeline Project continues to advance through engineering, environmental review and pre-filing activities. With recently signed precedent agreements, we now have executed agreements with all customers that submitted binding open season interest totaling nearly 1.2 billion cubic feet per day of firm natural gas transportation capacity, with a negotiated option in place that may increase the contracted volumes to nearly all of the original interest from our binding open season. The company continues to design the project for 1.4 billion cubic feet per day of transportation capacity. Overall project design is being finalized based on confirmed customer volumes and delivery locations before a final investment decision is made, which is expected ahead of a FERC Section 7(c) application. This application is now anticipated to be filed in the fourth quarter of 2026. The proposed in-service dates of Phase One in late 2029 and Phase Two in late 2030, remain. As development progresses, the company continues to evaluate all financing options to support the projected $2.7 billion to $3.2 billion project. Electric Utility SegmentStrong earnings growth driven by Badger Wind recovery, implementation of new and interim rates and increased volumes Badger Wind Farm contributed $3.3 million in earnings for the quarter Montana interim rates and new Wyoming electric rates contributed positively to results Retail sales volumes increased 8.2% The electric segment earned $14.7 million in the second quarter of 2026, compared with $10.4 million in the second quarter of 2025. In addition to Badger Wind Farm, results benefited from implemented rate increases and higher retail sales volumes. Data center demand continued to contribute to electric retail sales volume growth. Approach to Data CentersOur approach to serving data center customers, is grounded in protecting existing customers and ensuring that growth creates value for the communities we serve. Data center customers are responsible for paying the costs associated with connecting to and being served by the electric system, including infrastructure and energy-related expenses. Through careful planning, regulatory oversight and cost-allocation mechanisms, we ensure that existing customers are not subsidizing the costs of serving these new customers. At the same time, the additional revenue generated from serving data center customers can help support the electric system and contribute to reducing certain fixed costs by allocating them across a broader customer base. This current approach creates benefits for all customers. Regulatory Update: North Dakota: Montana: Interim electric rates reflecting an annual increase of approximately $10.4 million remain in effect, subject to refund. A settlement agreement of $10.0 million has been filed and is pending approval by the Montana Public Service Commission. Wyoming: General rate case settlement was approved for an annual increase of $5.8 million with rates effective April 1, 2026; reflecting recovery of infrastructure investments as well as associated operation and maintenance expense. Natural Gas Distribution SegmentNew rates and higher retail sales volumes support improved year-over-year results, offset by interest expense increases Positive contributions from new rates in Idaho, Washington, Montana and Wyoming Retail sales volumes increased 6.7% Continued customer growth of 1.6% year-over-year Increased interest expense due to higher long-term debt balances The natural gas distribution segment reported a seasonal second quarter loss of $3.9 million, compared with a seasonal loss of $7.4 million in the prior-year period. Results benefited from new rates across multiple jurisdictions, increased retail sales volumes and continued customer growth. The higher interest expense partially offset the gains. Regulatory Update: Washington: Filed a multiyear natural gas rate case with the Washington Utilities and Transportation Commission requesting an annual revenue increase of $25.1 million in year one, and $18.1 million in year two. The filing reflects investments in natural gas infrastructure, reliability improvements, system safety and normal depreciation of those assets. The request is pending a decision by the commission. Oregon: A multi-party settlement agreement of $12.2 million has been filed and is pending approval by the Oregon Public Utility Commission. Minnesota: General rate case filing is anticipated later this year. Pipeline SegmentStrategic growth initiatives continue to advance Continued development of the proposed Bakken East Pipeline Project Progress on additional growth projects Strong transportation demand across the system The pipeline segment earned approximately $14.4 million in the second quarter of 2026, compared with $15.4 million in the second quarter of 2025. Results were driven by lower other income and higher depreciation expense. These impacts were partially offset by increased transportation revenue, primarily due to customer demand for short-term natural gas transportation contracts. Strategic Project Updates: Proposed Bakken East Pipeline Project: Development activities continued during the quarter as the company advanced customer agreements, engineering work and regulatory activities. We have executed precedent agreements totaling nearly 1.2 billion cubic feet per day, with a negotiated option in place for nearly all of the original interest from our binding open season. The company continues engineering, environmental, cultural resource and stakeholder engagement activities while evaluating financing and partnership opportunities. Development activities remain focused on creating long-term value while advancing a strategically significant infrastructure project for North Dakota and the broader region. Line Section 32 Expansion Project: The project remains on schedule following the filing of a FERC 7(c) application in March 2026. The filing represents an important regulatory milestone as the project advances toward its targeted late-2028 in-service date, subject to regulatory approvals. Minot Industrial Project: Development activities for this potential project continue under agreements currently extended through late 2026. The proposed project could consist of an approximately 90-mile pipeline from Tioga, North Dakota to Minot, North Dakota and ancillary facilities to support anticipated industrial demand in the area. Regulatory Update: FERC rate case filed on May 29, 2026, requesting updated transportation and storage services rates. The filing seeks a $31 million annual revenue increase. Approximately 30% of the requested revenue increase is due to proposed new depreciation and amortization rates. FERC accepted and suspended the proposed rates on June 30, 2026, with rates to become effective Dec. 1, 2026, subject to refund and the outcome of hearing procedures if a settlement with our customers and FERC is not reached. GuidanceMDU Resources is reaffirming guidance and expects earnings per share to be in the range of $0.93 to $1.00. The expected 2026 results are based on several assumptions, including normal weather, economic and operating conditions for the remainder of the year, continued customer growth, successful execution of approved capital investment programs and constructive regulatory outcomes. The company's long-term earnings-per-share growth objective remains 6% to 8%. Conference CallMDU Resources will webcast its second quarter 2026 earnings conference call today at 2 p.m. ET. The webcast can be accessed through the Investors section of the company's website. A replay will be available following the call. About MDU Resources Group, Inc.MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, strives to deliver safe, reliable, cost-effective and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at [email protected]. Investor Contact: Brent Miller, treasurer, 701-530-1730Media Contact: Byron Pfordte, director of integrated communications, 208-377-6050 Cautionary Note Regarding Forward-Looking StatementsThis news release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events or developments that the company anticipates will or may occur in the future are forward-looking statements based on underlying assumptions (many of which are based, in turn, upon further assumptions), including but not limited to, statements identified by the words "anticipates," "estimates," "expects," "intends," "plans," and "predicts," in each case related to such things as growth estimates, stockholder value creation, the company's "CORE" strategy, capital expenditures, financial guidance, trends, objectives, goals, dividend payout ratio targets, earnings per share growth targets, customer rates, regulatory approvals, sustainability, strategies and other such matters. These forward-looking statements are based on many assumptions and factors, which are detailed in the company's filings with the U.S. Securities and Exchange Commission. While made in good faith, these forward-looking statements are based largely on the company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond the company's control. For additional discussion regarding risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in the company's most recent Annual Report on Form 10-K, and subsequent filings. Any changes in such assumptions or factors could produce significantly different results. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by applicable law, the company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. The capital program is subject to continued review and modification by the company. Actual expenditures may vary from estimates. Investment in the potential Bakken East Pipeline project would be incremental to the outlined capital program. The electric business reported net income of $14.7 million in the second quarter of 2026, compared to $10.4 million for the same period in 2025. This increase was largely the result of higher retail sales revenue, primarily from recovery mechanisms associated with renewable investments including Badger Wind Farm. Interim rates in Montana and new rates in Wyoming, along with higher retail sales volumes across all major customer classes, further drove the increase. The increase was partially offset by higher interest expense associated with debt issuances for recent capital investments, including Badger Wind Farm, as well as higher depreciation expense and operation and maintenance expense, primarily related to Badger Wind Farm. The natural gas distribution business reported a seasonal loss of $3.9 million in the second quarter of 2026, compared to a seasonal loss of $7.4 million for the same period in 2025. The lower seasonal loss was primarily driven by new rates in Idaho, Washington, Montana and Wyoming, as well as higher retail sales volumes across all customer classes. These impacts were partially offset by higher interest expense resulting from higher long-term debt balances. The pipeline business reported net income of $14.4 million in the second quarter of 2026, compared to $15.4 million for the same period in 2025. The decrease was driven by lower other income and higher depreciation and amortization expense from a growth project placed in service. These impacts were partially offset by continued customer demand for short-term natural gas transportation contracts and interruptible storage services, as well as contributions from previously constructed growth projects, including a contracted volume increase. For the second quarter of 2026 Other reported a net loss of $3.9 million compared to a net loss of $4.7 million for the same period in 2025. The increase was primarily due to income from discontinued operations associated with a $1.5 million tax benefit related to an election to change the tax method for certain strategic initiative costs. Other also reflects income tax adjustments related to the company's annualized estimated tax rate. Other includes the activities of the captive insurer which insures various types of risks of the company's subsidiaries. Also included in Other is general and administrative costs and interest expense previously allocated to the company's former businesses that did not meet the criteria for discontinued operations. Discontinued operations includes certain costs associated with legacy business activities. View original content to download multimedia:https://www.prnewswire.com/news-releases/mdu-resources-reports-second-quarter-2026-results-advances-infrastructure-growth-opportunities-302844342.html

MDU Resources (MDU) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +12.50%. A quarter ago, it was expected that this energy, mining, construction and utilities company would post earnings of $0.42 per share when it actually produced earnings of $0.39, delivering a surprise of -7.14%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. MDU Resources, which belongs to the Zacks Utility - Gas Distribution industry, posted revenues of $375.2 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.73%. This compares to year-ago revenues of $351.2 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MDU Resources shares have added about 2.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While MDU Resources has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MDU Resources was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $352.92 million in revenues for the coming quarter and $0.98 on $1.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Gas Distribution is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Utilities sector, Vistra Corp. (VST), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This company is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +52.5%. The consensus EPS estimate for the quarter has been revised 20% higher over the last 30 days to the current level. Vistra Corp.'s revenues are expected to be $6.29 billion, up 48.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MDU Resources Group, Inc. (MDU) : Free Stock Analysis Report Vistra Corp. (VST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research