Mdu Resources Group Inc 10-Q for FY2022 Q1

Mdu Resources Group Inc (MDU)

10-Q 2022-05-05 For: 2022-03-31

Added on April 12, 2026

About this 10-Q

Mdu Resources Group Inc filed this 10-Q on May 5, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.42B; up 15.4% from $1.23B a year earlier
Net income: $31.76M; down 39.1% from net income of $52.13M a year earlier
Diluted EPS: $0.16; down 38.5% from $0.26 a year earlier

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Delaware						30-1133956
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


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


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐


Index
			Page
Definitions			3
Introduction			5
Part I -- Financial Information
Item 1. Financial Statements			6
Consolidated Statements of Income -- Three Months Ended March 31, 2022 and 2021			6
Consolidated Statements of Comprehensive Income -- Three Months Ended March 31, 2022 and 2021			7
Consolidated Balance Sheets -- March 31, 2022 and 2021, and December 31, 2021			8
Consolidated Statements of Equity -- Three Months Ended March 31, 2022 and 2021			9
Consolidated Statements of Cash Flows -- Three Months Ended March 31, 2022 and 2021			10
Notes to Consolidated Financial Statements			11
1. Basis of presentation			11
2. New accounting standards			11
3. Seasonality of operations			11
4. Receivables and allowance for expected credit losses			12
5. Inventories and natural gas in storage			12
6. Earnings per share			13
7. Equity			13
8. Accumulated other comprehensive loss			13
9. Revenue from contracts with customers			15
10. Business combinations			16
11. Leases			17
12. Goodwill and other intangible assets			17
13. Regulatory assets and liabilities			19
14. Fair value measurements			20
15. Debt			22
16. Cash flow information			23
17. Business segment data			24
18. Employee benefit plans			26
19. Regulatory matters			26
20. Contingencies			27

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			29
Item 3. Quantitative and Qualitative Disclosures About Market Risk			47
Item 4. Controls and Procedures			48
Part II -- Other Information
Item 1. Legal Proceedings			49
Item 1A. Risk Factors			49
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			49
Item 4. Mine Safety Disclosures			49
Item 5. Other Information			49
Item 6. Exhibits			49
Exhibits Index			50
Signatures			51


Abbreviation or Acronym
2021 Annual Report			Company's Annual Report on Form 10-K for the year ended December 31, 2021
AFUDC			Allowance for funds used during construction
ASC			FASB Accounting Standards Codification
ASU			FASB Accounting Standards Update
Cascade			Cascade Natural Gas Corporation, an indirect wholly owned subsidiary of MDU Energy Capital
Centennial			Centennial Energy Holdings, Inc., a direct wholly owned subsidiary of the Company
Centennial Capital			Centennial Holdings Capital LLC, a direct wholly owned subsidiary of Centennial
Company			MDU Resources Group, Inc.
COVID-19			Coronavirus disease 2019. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic and the President of the United States declared the COVID-19 outbreak a national emergency.
Coyote Creek			Coyote Creek Mining Company, LLC, a subsidiary of The North American Coal Corporation
Coyote Station			427-MW coal-fired electric generating facility near Beulah, North Dakota (25 percent ownership)
dk			Decatherm
Dodd-Frank Act			Dodd-Frank Wall Street Reform and Consumer Protection Act
EPA			United States Environmental Protection Agency
Exchange Act			Securities Exchange Act of 1934, as amended
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission
Fidelity			Fidelity Exploration & Production Company, a direct wholly owned subsidiary of WBI Holdings (previously referred to as the Company's exploration and production segment)
GAAP			Accounting principles generally accepted in the United States of America
GHG			Greenhouse gas
Great Plains			Great Plains Natural Gas Co., a public utility division of Montana-Dakota
Intermountain			Intermountain Gas Company, an indirect wholly owned subsidiary of MDU Energy Capital
IRS			Internal Revenue Service
Knife River			Knife River Corporation, a direct wholly owned subsidiary of Centennial
kWh			Kilowatt-hour
LIBOR			London Inter-bank Offered Rate
MDU Construction Services			MDU Construction Services Group, Inc., a direct wholly owned subsidiary of Centennial
MDU Energy Capital			MDU Energy Capital, LLC, a direct wholly owned subsidiary of the Company
MISO			Midcontinent Independent System Operator, Inc., the organization that provides open-access transmission services and monitors the high-voltage transmission system in the Midwest United States and Manitoba, Canada and a southern United States region which includes much of Arkansas, Mississippi, and Louisiana.
MMcf			Million cubic feet
MMdk			Million dk
MNPUC			Minnesota Public Utilities Commission
Montana-Dakota			Montana-Dakota Utilities Co., a direct wholly owned subsidiary of MDU Energy Capital
MW			Megawatt
NDDEQ			North Dakota Department of Environmental Quality
NDPSC			North Dakota Public Service Commission
Oil			Includes crude oil and condensate
PHMSA			Pipeline and Hazardous Materials Safety Administration


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Regional Haze Rule			The EPA developed the Regional Haze Rule requiring states to develop and implement comprehensive plans to reduce human-caused regional haze in designated areas such as national parks and wilderness areas.
SDPUC			South Dakota Public Utilities Commission
SEC			United States Securities and Exchange Commission
SOFR			Secured Overnight Financing Rate
VIE			Variable interest entity
Washington DOE			Washington State Department of Ecology
WBI Energy			WBI Energy, Inc., an indirect wholly owned subsidiary of WBI Holdings
WBI Holdings			WBI Holdings, Inc., a direct wholly owned subsidiary of Centennial
WUTC			Washington Utilities and Transportation Commission
Wygen III			100-MW coal-fired electric generating facility near Gillette, Wyoming (25 percent ownership)


MDU Resources Group, Inc.
Consolidated Statements of Income
(Unaudited)
	Three Months Ended
	March 31,
		2022		2021
		(In thousands, except per share amounts)
Operating revenues:
Electric, natural gas distribution and regulated pipeline		$	553,456	$	442,381
Non-regulated pipeline, construction materials and contracting, construction services and other		863,103		785,557
Total operating revenues		1,416,559		1,227,938
Operating expenses:
Operation and maintenance:
Electric, natural gas distribution and regulated pipeline		97,665		94,333
Non-regulated pipeline, construction materials and contracting, construction services and other		810,232		717,326
Total operation and maintenance		907,897		811,659
Purchased natural gas sold		267,353		176,237
Depreciation, depletion and amortization		80,121		73,723
Taxes, other than income		67,484		62,534
Electric fuel and purchased power		26,361		18,621
Total operating expenses		1,349,216		1,142,774
Operating income		67,343		85,164
Other income (expense)		(2,400)		3,354
Interest expense		25,260		23,453
Income before income taxes		39,683		65,065
Income taxes		7,950		12,949
Income from continuing operations		31,733		52,116
Income from discontinued operations, net of tax		30		15
Net income		$	31,763	$	52,131
Earnings per share - basic:
Income from continuing operations		$	.16	$	.26
Discontinued operations, net of tax		—		—
Earnings per share - basic		$	.16	$	.26
Earnings per share - diluted:
Income from continuing operations		$	.16	$	.26
Discontinued operations, net of tax		—		—
Earnings per share - diluted		$	.16	$	.26
Weighted average common shares outstanding - basic		203,351		200,708
Weighted average common shares outstanding - diluted		203,391		200,952


MDU Resources Group, Inc.
Consolidated Balance Sheets
(Unaudited)
	March 31, 2022		March 31, 2021		December 31, 2021
Assets	(In thousands, except shares and per share amounts)
Current assets:
Cash and cash equivalents	$	64,904	$	55,094	$	54,161
Receivables, net	948,024		784,582		946,741
Inventories	380,316		316,737		335,609
Current regulatory assets	89,078		98,452		118,691
Prepayments and other current assets	89,586		68,409		95,741
Total current assets	1,571,908		1,323,274		1,550,943
Noncurrent assets:
Property, plant and equipment	8,958,600		8,288,879		8,972,849
Less accumulated depreciation, depletion and amortization	3,158,091		3,096,371		3,216,461
Net property, plant and equipment	5,800,509		5,192,508		5,756,388
Goodwill	763,262		714,963		765,386
Other intangible assets, net	21,389		23,961		22,578
Regulatory assets	359,228		379,917		357,851
Investments	174,555		167,741		175,476
Operating lease right-of-use assets	119,845		116,663		124,138
Other	160,019		150,248		157,675
Total noncurrent assets	7,398,807		6,746,001		7,359,492
Total assets	$	8,970,715	$	8,069,275	$	8,910,435
Liabilities and Stockholders' Equity
Current liabilities:
Short-term borrowings	$	99,958	$	50,000	$	—
Long-term debt due within one year	147,953		1,552		148,053
Accounts payable	449,746		379,348		478,933
Taxes payable	90,572		88,711		80,372
Dividends payable	44,229		42,740		44,229
Accrued compensation	64,796		69,612		81,904
Operating lease liabilities due within one year	34,618		32,562		35,368
Regulatory liabilities due within one year	31,186		34,266		16,303
Other accrued liabilities	203,670		201,246		207,078
Total current liabilities	1,166,728		900,037		1,092,240
Noncurrent liabilities:
Long-term debt	2,599,810		2,251,722		2,593,847
Deferred income taxes	587,940		528,551		591,962
Asset retirement obligations	463,080		445,170		458,061
Regulatory liabilities	433,628		429,060		428,790
Operating lease liabilities	85,874		84,494		89,253
Other	272,937		329,935		273,408
Total noncurrent liabilities	4,443,269		4,068,932		4,435,321
Commitments and contingencies
Stockholders' equity:
Common stock Authorized - 500,000,000 shares, $1.00 par value Shares issued - 203,889,661 at March 31, 2022, 201,733,458 at March 31, 2021 and 203,889,661 at December 31, 2021	203,889		201,733		203,889
Other paid-in capital	1,451,464		1,382,158		1,461,205
Retained earnings	1,749,726		1,567,551		1,762,410
Accumulated other comprehensive loss	(40,735)		(47,510)		(41,004)
Treasury stock at cost - 538,921 shares	(3,626)		(3,626)		(3,626)
Total stockholders' equity	3,360,718		3,100,306		3,382,874
Total liabilities and stockholders' equity	$	8,970,715	$	8,069,275	$	8,910,435


MDU Resources Group, Inc.
Consolidated Statements of Equity
(Unaudited)
				Other Paid-in Capital		Retained Earnings		Accumu-lated Other Compre-hensive Loss
	Common Stock									Treasury Stock
	Shares	Amount								Shares	Amount		Total
	(In thousands, except shares)
At December 31, 2021	203,889,661	$	203,889	$	1,461,205	$	1,762,410	$	(41,004)	(538,921)	$	(3,626)	$	3,382,874
Net income	—	—		—		31,763		—		—	—		31,763
Other comprehensive income	—	—		—		—		269		—	—		269
Dividends declared on common stock	—	—		—		(44,447)		—		—	—		(44,447)
Stock-based compensation	—	—		2,689		—		—		—	—		2,689
Repurchase of common stock	—	—		—		—		—		(266,821)	(7,399)		(7,399)
Issuance of common stock upon vesting of stock-based compensation, net of shares used for tax withholdings	—	—		(12,303)		—		—		266,821	7,399		(4,904)
Issuance of common stock	—	—		(127)		—		—		—	—		(127)
At March 31, 2022	203,889,661	$	203,889	$	1,451,464	$	1,749,726	$	(40,735)	(538,921)	$	(3,626)	$	3,360,718


MDU Resources Group, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Operating activities:
Net income	$	31,763	$	52,131
Income from discontinued operations, net of tax	30		15
Income from continuing operations	31,733		52,116
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	80,121		73,723
Deferred income taxes	(6,466)		9,843
Provision for credit losses	1,735		(317)
Amortization of debt issuance costs	341		332
Employee stock-based compensation costs	2,689		2,574
Pension & postretirement benefit plan net periodic benefit credit	(1,491)		(1,226)
Unrealized losses on investments	5,147		529
Gains on sales of assets	(3,136)		(2,919)
Changes in current assets and liabilities, net of acquisitions:
Receivables	(5,723)		89,724
Inventories	(44,080)		(25,613)
Other current assets	34,491		(46,837)
Accounts payable	2,980		(41,965)
Other current liabilities	13,086		(13,977)
Pension & postretirement benefit plan contributions	(149)		(119)
Other noncurrent changes	1,139		(223)
Net cash provided by continuing operations	112,417		95,645
Net cash used in discontinued operations	(7)		(25)
Net cash provided by operating activities	112,410		95,620
Investing activities:
Capital expenditures	(150,288)		(111,091)
Acquisitions, net of cash acquired	(524)		(1,023)
Net proceeds from sale or disposition of property and other	4,586		9,035
Investments	(4,442)		(3,248)
Net cash used in investing activities	(150,668)		(106,327)
Financing activities:
Issuance of short-term borrowings	100,000		50,000
Repayment of short-term borrowings	—		(50,000)
Issuance of long-term debt	150,000		93,298
Repayment of long-term debt	(143,622)		(53,301)
Debt issuance costs	(718)		(3)
Net proceeds from issuance of common stock	(127)		19,699
Dividends paid	(44,229)		(42,611)
Repurchase of common stock	(7,399)		(6,701)
Tax withholding on stock-based compensation	(4,904)		(4,127)
Net cash provided by financing activities	49,001		6,254
Increase (decrease) in cash and cash equivalents	10,743		(4,453)
Cash and cash equivalents -- beginning of year	54,161		59,547
Cash and cash equivalents -- end of period	$	64,904	$	55,094


Standard	Description	Effective date	Impact on financial statements/disclosures
ASU 2021-10 - Government Assistance	In November 2021, the FASB issued guidance on modifying the disclosure requirements to increase the transparency of government assistance including disclosure of the types of assistance, an entity's accounting for the assistance and the effect of the assistance on an entity's financial statements.	January 1, 2022	The Company is currently evaluating the impact the guidance will have on its disclosures for the year ended December 31, 2022.
ASU 2020-04 - Reference Rate Reform	In March 2020, the FASB issued optional guidance to ease the facilitation of the effects of reference rate reform on financial reporting. The guidance applies to certain contract modifications, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Beginning January 1, 2022, LIBOR or other discontinued reference rates cannot be applied to new contracts. New contracts will incorporate a new reference rate, which includes SOFR. LIBOR or other discontinued reference rates cannot be applied to contract modifications or hedging relationships entered into or evaluated after December 31, 2022. Existing contracts referencing LIBOR or other reference rates expected to be discontinued must identify a replacement rate by June 30, 2023.	Effective as of March 12, 2020 and will continue through December 31, 2022	The Company has updated its credit agreements to include language regarding the successor or alternate rate to LIBOR, and a review of other contracts and agreements is on-going. The Company does not expect the guidance to have a material impact on its results of operations, financial position, cash flows or disclosures.


	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Total
	(In thousands)
At December 31, 2021	$	269	$	1,506	$	2	$	5,406	$	2,533	$	9,716
Current expected credit loss provision	565		1,369		—		(253)		54		1,735
Less write-offs charged against the allowance	597		932		—		27		71		1,627
Credit loss recoveries collected	124		180		—		—		28		332
At March 31, 2022	$	361	$	2,123	$	2	$	5,126	$	2,544	$	10,156


	Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges		Postretirement Liability Adjustment		Net Unrealized Gain (Loss) on Available-for-sale Investments		Total Accumulated Other Comprehensive Loss
	(In thousands)
At December 31, 2021	$	(538)	$	(40,461)	$	(5)	$	(41,004)
Other comprehensive loss before reclassifications	—		—		(320)		(320)
Amounts reclassified from accumulated other comprehensive loss	112		445		32		589
Net current-period other comprehensive income (loss)	112		445		(288)		269
At March 31, 2022	$	(426)	$	(40,016)	$	(293)	$	(40,735)


	March 31, 2022		March 31, 2021		December 31, 2021
	(In thousands)
Aggregates held for resale	$	195,489	$	180,450	$	184,363
Asphalt oil	93,816		59,853		57,002
Materials and supplies	35,967		26,481		30,629
Merchandise for resale	33,393		24,319		28,501
Natural gas in storage (current)	10,801		8,113		18,867
Other	10,850		17,521		16,247
Total	$	380,316	$	316,737	$	335,609


	March 31, 2022		March 31, 2021		December 31, 2021
	(In thousands)
Customer relationships	$	28,990	$	28,836	$	29,740
Less accumulated amortization	10,846		7,792		10,650
	18,144		21,044		19,090
Noncompete agreements	4,591		3,941		4,591
Less accumulated amortization	3,016		2,441		2,856
	1,575		1,500		1,735
Other	6,969		11,957		12,601
Less accumulated amortization	5,299		10,540		10,848
	1,670		1,417		1,753
Total	$	21,389	$	23,961	$	22,578


	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Amortization expense	$	3,630	$	4,470	$	4,200	$	2,206	$	1,716	$	5,167


	Estimated Recovery or Refund Period as of March 31, 2022	*	March 31, 2022		March 31, 2021		December 31, 2021
			(In thousands)
Regulatory assets:
Current:
Natural gas costs recoverable through rate adjustments	Up to 1 year		$	66,132	$	76,782	$	86,371
Decoupling	Up to 1 year		7,609		4,180		9,131
Conservation programs	Up to 1 year		7,567		6,679		8,225
Cost recovery mechanisms	Up to 1 year		3,432		7,130		4,536
Other	Up to 1 year		4,338		3,681		10,428
			89,078		98,452		118,691
Noncurrent:
Pension and postretirement benefits	**		142,681		155,924		142,681
Cost recovery mechanisms	Up to 10 years		67,989		15,508		44,870
Plant costs/asset retirement obligations	Over plant lives		63,325		72,250		63,116
Plant to be retired	-		29,452		73,498		50,070
Manufactured gas plant site remediation	-		26,089		26,002		26,053
Taxes recoverable from customers	Over plant lives		12,492		10,800		12,339
Long-term debt refinancing costs	Up to 38 years		3,636		4,268		3,794
Natural gas costs recoverable through rate adjustments	Up to 2 years		3,246		15,158		5,186
Other	Up to 17 years		10,318		6,509		9,742
			359,228		379,917		357,851
Total regulatory assets			$	448,306	$	478,369	$	476,542
Regulatory liabilities:
Current:
Natural gas costs refundable through rate adjustments	Up to 1 year		$	13,107	$	16,344	$	6,700
Taxes refundable to customers	Up to 1 year		3,470		3,092		3,841
Electric fuel and purchased power deferral	Up to 1 year		—		2,001		—
Other	Up to 1 year		14,609		12,829		5,762
			31,186		34,266		16,303
Noncurrent:
Taxes refundable to customers	Over plant lives		212,472		224,795		215,421
Plant removal and decommissioning costs	Over plant lives		171,485		169,430		168,152
Pension and postretirement benefits	**		20,434		16,965		20,434
Accumulated deferred investment tax credit	Up to 20 years		13,352		11,428		12,696
Other	Up to 20 years		15,885		6,442		12,087
			433,628		429,060		428,790
Total regulatory liabilities			$	464,814	$	463,326	$	445,093
Net regulatory position			$	(16,508)	$	15,043	$	31,449


	Three Months Ended				Location on Consolidated Statements of Income
	March 31,
	2022		2021
	(In thousands)
Reclassification adjustment for loss on derivative instruments included in net income	$	(148)	$	(148)		Interest expense
	36		37			Income taxes
	(112)		(111)
Amortization of postretirement liability losses included in net periodic benefit credit	(609)		(617)			Other income
	164		151			Income taxes
	(445)		(466)
Reclassification adjustment on available-for-sale investments included in net income	(40)		(44)			Other income
	8		9			Income taxes
	(32)		(35)
Total reclassifications	$	(589)	$	(612)


Three Months Ended March 31, 2022	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	37,304	$	258,816	$	—	$	—	$	—	$	—	$	296,120
Commercial utility sales	35,600		163,609		—		—		—		—		199,209
Industrial utility sales	10,306		13,024		—		—		—		—		23,330
Other utility sales	1,750		—		—		—		—		—		1,750
Natural gas transportation	—		12,381		31,574		—		—		—		43,955
Natural gas storage	—		—		3,719		—		—		—		3,719
Contracting services	—		—		—		114,267		—		—		114,267
Construction materials	—		—		—		241,732		—		—		241,732
Intrasegment eliminations	—		—		—		(46,033)		—		—		(46,033)
Electrical & mechanical specialty contracting	—		—		—		—		392,808		—		392,808
Transmission & distribution specialty contracting	—		—		—		—		148,466		—		148,466
Other	12,753		2,609		1,709		—		48		4,341		21,460
Intersegment eliminations	(124)		(136)		(25,940)		(130)		(1,059)		(4,341)		(31,730)
Revenues from contracts with customers	97,589		450,303		11,062		309,836		540,263		—		1,409,053
Revenues out of scope	(3,995)		115		58		—		11,328		—		7,506
Total external operating revenues	$	93,594	$	450,418	$	11,120	$	309,836	$	551,591	$	—	$	1,416,559


Three Months Ended March 31, 2021	Electric		Natural gas distribution		Pipeline		Construction materials and contracting		Construction services		Other		Total
	(In thousands)
Residential utility sales	$	33,436	$	203,137	$	—	$	—	$	—	$	—	$	236,573
Commercial utility sales	32,928		120,052		—		—		—		—		152,980
Industrial utility sales	10,029		8,812		—		—		—		—		18,841
Other utility sales	1,566		—		—		—		—		—		1,566
Natural gas transportation	—		12,452		29,417		—		—		—		41,869
Natural gas storage	—		—		4,029		—		—		—		4,029
Contracting services	—		—		—		96,025		—		—		96,025
Construction materials	—		—		—		216,412		—		—		216,412
Intrasegment eliminations	—		—		—		(46,716)		—		—		(46,716)
Electrical & mechanical specialty contracting	—		—		—		—		355,190		—		355,190
Transmission & distribution specialty contracting	—		—		—		—		151,363		—		151,363
Other	9,773		3,009		2,660		—		36		3,341		18,819
Intersegment eliminations	(136)		(142)		(26,229)		(62)		(1,042)		(3,324)		(30,935)
Revenues from contracts with customers	87,596		347,320		9,877		265,659		505,547		17		1,216,016
Revenues out of scope	(2,923)		2,886		36		—		11,923		—		11,922
Total external operating revenues	$	84,673	$	350,206	$	9,913	$	265,659	$	517,470	$	17	$	1,227,938


	March 31, 2022		December 31, 2021		Change		Location on Consolidated Balance Sheets
	(In thousands)
Contract assets	$	164,622	$	125,742	$	38,880	Receivables, net
Contract liabilities - current	(154,136)		(179,140)		25,004		Accounts payable
Contract liabilities - noncurrent	(40)		(118)		78		Noncurrent liabilities - other
Net contract assets (liabilities)	$	10,446	$	(53,516)	$	63,962


	Balance at January 1, 2022		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at March 31, 2022
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	276,426		—		(2,124)		274,302
Construction services	143,224		—		—		143,224
Total	$	765,386	$	—	$	(2,124)	$	763,262


	Balance at January 1, 2021		Goodwill Acquired During the Year		Measurement Period Adjustments		Balance at March 31, 2021
	(In thousands)
Natural gas distribution	$	345,736	$	—	$	—	$	345,736
Construction materials and contracting	226,003		—		—		226,003
Construction services	143,224		—		—		143,224
Total	$	714,963	$	—	$	—	$	714,963


March 31, 2022	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Mortgage-backed securities	$	8,778	$	3	$	310	$	8,471
U.S. Treasury securities	2,688		—		63		2,625
Total	$	11,466	$	3	$	373	$	11,096


	Fair Value Measurements at March 31, 2022, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at March 31, 2022
	(In thousands)
Assets:
Money market funds	$	—	$	13,131	$	—	$	13,131
Insurance contracts*	—		105,371		—		105,371
Available-for-sale securities:
Mortgage-backed securities	—		8,471		—		8,471
U.S. Treasury securities	—		2,625		—		2,625

Total assets measured at fair value	$	—	$	129,598	$	—	$	129,598


	Fair Value Measurements at December 31, 2021, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at December 31, 2021
	(In thousands)
Assets:
Money market funds	$	—	$	10,190	$	—	$	10,190
Insurance contracts*	—		109,603		—		109,603
Available-for-sale securities:
Mortgage-backed securities	—		8,706		—		8,706
U.S. Treasury securities	—		2,396		—		2,396

Total assets measured at fair value	$	—	$	130,895	$	—	$	130,895


	Weighted Average Interest Rate at March 31, 2022		March 31, 2022		March 31, 2021		December 31, 2021
			(In thousands)
Senior Notes due on dates ranging from October 22, 2022 to September 15, 2061	4.28	%	$	2,275,000	$	1,950,000	$	2,125,000
Commercial paper supported by revolving credit agreements	.90	%	348,500		218,900		450,300
Credit agreements due on June 7, 2024	3.25	%	85,800		43,350		127,500
Medium-Term Notes due on dates ranging from September 15, 2027 to March 16, 2029	7.32	%	35,000		35,000		35,000
Term Loan Agreement due on September 3, 2032	2.00	%	7,700		8,400		7,700
Other notes due on dates ranging from January 1, 2024 to January 1, 2061	.95	%	2,445		3,282		2,564
Less unamortized debt issuance costs			6,605		5,655		6,090
Less discount			77		3		74
Total long-term debt			2,747,763		2,253,274		2,741,900
Less current maturities			147,953		1,552		148,053
Net long-term debt			$	2,599,810	$	2,251,722	$	2,593,847


	Remainder of 2022		2023		2024		2025		2026		Thereafter
	(In thousands)
Long-term debt maturities	$	147,953	$	77,925	$	495,104	$	177,802	$	140,802	$	1,714,859


Operating statistics	Three Months Ended
	March 31,
	2022		2021
Revenues (millions):
Retail sales:
Residential	$	35.2	$	31.9
Commercial	33.6		31.4
Industrial	9.8		9.6
Other	1.6		1.5
	80.2		74.4
Transportation and other	13.5		10.4
	$	93.7	$	84.8
Retail sales (million kWh)
Residential	357.7		334.9
Commercial	364.1		361.8
Industrial	140.3		144.5
Other	19.5		19.2
	881.6		860.4
Average cost of electric fuel and purchased power per kWh	$	.027	$	.019


Operating statistics	Revenues					Gross margin
	Three Months Ended				Three Months Ended
	March 31,				March 31,
	2022		2021			2022		2021
	(In millions)
Aggregates	$	77.6	$	70.4		$	(2.8)	$	(2.7)
Asphalt	18.1		14.3			(6.1)		(4.8)
Ready-mix concrete	108.5		100.7			5.2		5.7
Other products*	37.5		31.0			(13.7)		(11.7)
Contracting services	114.3		96.0			2.2		3.9
Intracompany eliminations	(46.0)		(46.7)			—		—
	$	310.0	$	265.7		$	(15.2)	$	(9.6)


Company	Facility		Facility Limit			Amount Outstanding		Letters of Credit			Expiration Date
			(In millions)
Montana-Dakota Utilities Co.	Commercial paper/Revolving credit agreement	(a)	$	175.0		$	29.4	$	—		12/19/24
Cascade Natural Gas Corporation	Revolving credit agreement		$	100.0	(b)	$	49.9	$	2.2	(c)	6/7/24
Intermountain Gas Company	Revolving credit agreement		$	85.0	(d)	$	35.9	$	—		6/7/24
Centennial Energy Holdings, Inc.	Commercial paper/Revolving credit agreement	(e)	$	600.0		$	319.1	$	—		12/19/24


ISSUER PURCHASES OF EQUITY SECURITIES
Period	(a) Total Number of Shares (or Units) Purchased (1)	(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2)	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (2)
January 1 through January 31, 2022	—	$	—	—	—
February 1 through February 28, 2022	266,821	$	27.73	—	—
March 1 through March 31, 2022	—	$	—	—	—
Total	266,821	$	27.73	—	—


		MDU RESOURCES GROUP, INC.

DATE:	May 5, 2022	BY:	/s/ Jason L. Vollmer
			Jason L. Vollmer
			Vice President and Chief Financial Officer


		BY:	/s/ Stephanie A. Barth
			Stephanie A. Barth
			Vice President, Chief Accounting Officer and Controller


MSHA Identification Number/Contractor ID	Section 104 S&S Citations (#)	Section 107(a) Orders (#)	Total Dollar Value of MSHA Assessments Proposed ($)		Legal Actions Pending as of Last Day of Period (#)	Legal Actions Initiated During Period (#)	Legal Actions Resolved During Period (#)


04-05140	—	—	$	610	—	—	—
























































35-00426	—	—	266		—	—	—


35-00512	—	—	—		—	—	1


35-02382	—	—	—		—	—	1

35-02968	—	—	—		2	—	—
35-03022	1	—	928		1	1	—







35-03527	—	—	266		—	—	—
35-03558	—	—	133		—	—	—
35-03581	1	—	399		—	—	—
35-00634	4	1	6,333		—	—	—
35-00480	—	—	266		—	—	—
35-03771	—	—	725		—	—	—












39-00008	—	—	133		—	—	—


41-02639	—	—	250		—	—	—

41-05492	—	—	250		—	—	—

48-01383	—	—	—		4	—	—
48-01518	4	—	—		—	—	—
















	10	1	$	10,559	7	1	2


MSHA Identification Number	Contests of Citations and Orders	Contests of Proposed Penalties	Complaints for Compensation	Complaints of Discharge, Discrimination or Interference	Applications for Temporary Relief	Appeals of Judges' Decisions or Orders to the Commission
35-02968	2	—	—	—	—	—
35-03022	1	—	—	—	—	—
48-01383	4	—	—	—	—	—
	7	—	—	—	—	—