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 23, 2021
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 23, 2021, 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 23, 2021, 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 23, 2021 | 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. 23, 2021 — MDU Resources Group, Inc. (NYSE: MDU) today announced that it plans to make capital investments totaling $3.0 billion for the five-year period from 2022-26.
“Our capital investment plan supports the significant opportunities we see for organic growth at all our businesses, particularly a focus on infrastructure development and grid reliability and resiliency,” said David L. Goodin, president and CEO of MDU Resources.
Acquisitions would be incremental to the company's 2022-26 outlined capital investment plan. The company will provide updates as it identifies opportunities outside the plan.
| Capital Expenditures | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Forecast | Actual<br> + 2021 Forecast | Forecast | ||||||||||
| 2021 | 2022 | 2023 | 2024 | 2017-2021 | 2022-2026 | |||||||
| (in millions) | ||||||||||||
| Regulated energy delivery | ||||||||||||
| Electric | $ | 93 | $ | 165 | $ | 116 | $ | 85 | $ | 603 | $ | 551 |
| Natural gas distribution | 179 | 248 | 232 | 207 | 931 | 1,033 | ||||||
| Pipeline | 246 | 72 | 159 | 106 | 481 | 413 | ||||||
| 518 | 485 | 507 | 398 | 2,015 | 1,997 | |||||||
| Construction materials and services | ||||||||||||
| Construction materials and contracting | 428 | 189 | 166 | 172 | 1,134 | 807 | ||||||
| Construction services | 46 | 47 | 42 | 43 | 234 | 221 | ||||||
| 474 | 236 | 208 | 215 | 1,368 | 1,028 | |||||||
| Total* | $ | 992 | $ | 721 | $ | 715 | $ | 613 | $ | 3,383 | $ | 3,025 |
| * Excludes “Other” category, as well as assumed net proceeds from the sale or disposition of property. |
MDU Resources continues to make substantial investments in its utility operations. 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 ensure the reliability and safety of the company’s systems and support continued customer growth and subsequent demand increases. The plan includes construction of the previously announced Heskett Station Unit IV, an 88-megawatt simple-cycle, natural gas-fired combustion turbine near Mandan, North Dakota, to replace the company’s Heskett Station Units I and II, which are coal fired electric generation facilities being retired in early 2022. Utility operations cross eight states where customer growth is expected to continue at a rate of 1-2% annually. The company anticipates its electric and natural gas utilities will grow rate base by approximately 5% annually over the next five years on a compound basis.
Capital investments at the pipeline business reflect organic growth projects and include the previously announced North Bakken Expansion project, which will be placed in service in early 2022, and the Wahpeton Expansion project planned for 2024. These projects, as designed, will bring pipeline system capacity to over 2.4 billion cubic feet of natural gas per day and 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 the company’s construction materials and services businesses, capital expenditures will be focused primarily on organic expansion opportunities and normal equipment and plant replacements and upgrades. Included in the forecast is the construction of a prestress concrete plant in Spokane, Washington, continued development of the company’s Honey Creek Quarry in Texas and completion of the company’s training facility in Oregon. The company expects public sector workload growth from infrastructure spending initiatives. The American Rescue Plan Act, approved in early 2021, provides $1.9 trillion in COVID-19 relief funding for states and local governments, with investments to include transportation enhancements, technology-based facility buildout and telecommunications infrastructure. Additionally, the company expects the bipartisan Infrastructure Investment and Jobs Act will provide significant opportunities for both construction materials and services companies through much-needed investment in America’s infrastructure. The construction businesses also are focused on growth through mergers and acquisitions, with any future acquisitions being incremental to the outlined capital forecast.
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 and regulatory decisions, future acquisitions, and other factors.
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, 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 Fortune 500 company and 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: Jason Vollmer, vice president and chief financial officer, 701-530-1755
Media Contact: Laura Lueder, manager of communications and public relations, 701-530-1095
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