8-K
Mdu Resources Group Inc (MDU)
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 22, 2022
MDU Resources Group Inc
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer Identification No.) |
|---|---|---|
| incorporation) | ||
| Delaware | 1-03480 | 30-1133956 |
1200 West Century Avenue
P.O. Box 5650
Bismarck, North Dakota 58506-5650
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code (701) 530-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| (Title of each class) | (Trading Symbol(s)) | (Name of each exchange on which registered) |
|---|---|---|
| Common Stock, par value $1.00 per share | MDU | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
On November 22, 2022, MDU Resources Group, Inc. (the "Company") issued a press release announcing its five-year capital investment plan. A copy of the press release, which the Company is furnishing to the Securities and Exchange Commission, is attached as Exhibit 99 and incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished as part of this report.
Exhibit Number Description
99 Press release issued November 22, 2022, announcing five-year capital investment plan.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MDU RESOURCES GROUP, INC. | |
|---|---|
| Date November 22, 2022 | By /s/ Jason L. Vollmer |
| Jason L. Vollmer | |
| Vice President and Chief Financial | |
| Officer |
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Document
MDU Resources Announces Five-Year Capital Investment Plan
BISMARCK, N.D. — Nov. 22, 2022 — MDU Resources Group, Inc. (NYSE: MDU) today announced its plans to make capital investments totaling $3.5 billion over the five-year period from 2023 to 2027.
“Our capital investment plan includes a number of key projects that are expected to provide organic growth across our businesses, with particular emphasis on upgrades and expansions to our electric transmission and distribution infrastructure and our natural gas transportation and distribution systems,” said David L. Goodin, president and CEO of MDU Resources. “These capital investments encompass all our businesses while we continue to make progress toward our strategic initiatives of creating two pure-play public companies.”
On Aug. 4, the company announced its intent to separate Knife River Corporation, which is expected to be effected as a tax-free spinoff to MDU Resources shareholders. In addition, on Nov. 3, the company announced a strategic review process for MDU Construction Services Group, Inc. The company plans to provide a progress update in mid-December on its strategic initiatives.
| Capital Expenditures | ||||||
|---|---|---|---|---|---|---|
| Forecast | Actual + 2022 Forecast | Forecast | ||||
| 2022 | 2023 | 2024 | 2025 | 2018-2022 | 2023-2027 | |
| (in millions) | ||||||
| Regulated energy delivery | ||||||
| Electric | $156 | $112 | $127 | $130 | $638 | $823 |
| Natural gas distribution | 236 | 224 | 311 | 260 | 1,012 | 1,266 |
| Pipeline | 71 | 145 | 117 | 127 | 509 | 458 |
| 463 | 481 | 555 | 517 | 2,159 | 2,547 | |
| Construction materials and services | ||||||
| Construction materials and contracting | 189 | 125 | 183 | 173 | 1,268 | 804 |
| Construction services | 47 | 38 | 34 | 34 | 246 | 178 |
| 236 | 163 | 217 | 207 | 1,514 | 982 | |
| Total* | $699 | $644 | $772 | $724 | $3,673 | $3,529 |
| * Excludes “Other” category, as well as assumed net proceeds from the sale or disposition of property. |
MDU Resources plans to make substantial investments in its utility operations with a 27% increase in capital expenditures compared to the previous five years. The company anticipates its electric and natural gas utilities will grow rate base by approximately 6%-7% annually over the next five years on a compound basis. Customer growth is expected to continue at a rate of 1%-2% annually across the company's eight-state service territory.
The outlined capital investment plan includes meeting service needs related to customer growth as well as replacing, expanding and modernizing infrastructure within the electric and natural gas distribution systems. These infrastructure investments will provide enhanced reliability and safety across the company's systems, in addition to serving a growing customer base. The plan includes construction of transmission and substations, power production upgrades and improvements, and the recently announced Jamestown-to-Ellendale 345-kilovolt transmission project in North Dakota, which is estimated to cost $439 million and of which the company expects to invest 50% or $220 million, recovered through a MISO rate.
Capital investments at the pipeline business reflect a continued focus on organic growth. The plan includes several expansion projects, including the previously announced Wahpeton Expansion project in North Dakota, which collectively would add more than 300 million cubic feet per day of incremental natural gas transportation capacity. These projects support industrial customers, local distribution companies and electric power generation natural gas demand. Additionally, some projects also will help reduce natural gas flaring in the Bakken while allowing producers to move more gas to market. This business is focused on growth through additional system expansions and potential industrial-related projects.
At Knife River, the construction materials business, capital expenditures will be focused primarily on organic expansion opportunities and normal equipment and plant replacements and upgrades. The company expects public sector workload growth from infrastructure spending initiatives, specifically benefiting from the Infrastructure Investment and Jobs Act and Inflation Reduction Act providing long-term opportunities across the company's footprint.
Capital expenditures at MDU Construction Services Group, the construction services business, will be focused primarily on normal equipment replacements and upgrades. The company also expects public sector workload growth for this business from the Infrastructure Investment and Jobs Act and Inflation Reduction Act.
The capital program is subject to continued review and modification by the company. Actual expenditures may vary from the estimates due to changes in load growth, regulatory decisions and other factors. Acquisitions would be incremental to the company's 2023 to 2027 outlined capital investment plan. The company will provide updates as it identifies opportunities outside the plan.
Forward-Looking Statements
The information in this release includes certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this release, including capital expenditure forecasts, underlying expectations, whether or not the Knife River separation occurs, potential outcomes of the strategic review of MDU Construction Services Group, and statements by the president and CEO of MDU Resources, are expressed in good faith and are believed by the company to have a reasonable basis. Nonetheless, actual results may differ materially from the projected results expressed in the forward-looking statements. For a discussion of important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, refer to Item 1A-Risk Factors in MDU Resources’ most recent Form 10-K and subsequent filings with the SEC.
About MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400 and the S&P High-Yield Dividend Aristocrats indices, is Building a Strong America® by providing essential products and services through its regulated energy delivery and construction materials and services businesses. For more information about MDU Resources, visit www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
Financial Contact: Brent Miller, director of financial projects and investor relations, 701-530-1730
Media Contact: Laura Lueder, manager of communications and public relations, 701-530-1095
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