MDU Resources Group Powers Ahead with Record-Breaking First Quarter
MDU Resources Group, a leading energy and utility company, is off to a strong start in 2025, reporting income from continuing operations of $82.5 million or $0.40 per share for the first quarter, a 10.4% increase compared to this time last year.
The company's pipeline and natural gas distribution segments grew earnings by 13.9% and 11.5%, respectively, year-over-year, driving its solid first-quarter performance. This growth is attributed to the company's core strategy of delivering excellent performance and positioning MDU Resources with compelling long-term growth prospects.
"I am extremely proud of our employees whose dedication to our core strategy continues to deliver excellent performance," said Nicole Kivisto, President and CEO of MDU Resources. "Our utility experienced 1.4% combined retail customer growth compared to a year ago, which is in line with our 1% to 2% annual projected growth rate."
This growth reinforces the need for the company to invest in its utility infrastructure to meet the demands of its growing customer base.
At the Electric segment, MDU Resources signed a purchase agreement to acquire a 49% ownership interest in the Badger Wind Farm during the quarter. The purchase is contingent on certain regulatory approvals and has filed an advanced determination of prudence with the North Dakota Public Service Commission for this project.
The company also anticipates filing general rate cases in Montana and Wyoming at its electric segment yet this year. From a legislative perspective, wildfire prevention and liability limitation bills have passed in 3 of their 4 electric states, providing greater certainty going forward and limiting liability.
MDU Resources continues to see data center opportunities, including the 580 megawatts of data center load they have under signed electric service agreements. Of that total, 180 megawatts is currently online with an additional 100 megawatts expected to come online late this year and the balance expected to continue through the next few years.
The company's current approach is to serve these large customer opportunities with a capital-light business model, which not only benefits their earnings and returns but also provides cost savings to other retail customers.
At its natural gas distribution segment, rate relief was a strong contributor to the quarterly results. In Washington, they received a final order approving their multiyear rate case with year 1 rates effective March 5, 2025, and year 2 rates effective March 1, 2026. Subsequently, they did file a revision to decrease revenue slightly due to forecasted plant that was not placed in service by December 31, 2024.
In Montana, they received approval of interim rates effective February 1 and also filed a settlement agreement on April 3, 2025. In Wyoming, they have reached a settlement in principle in their rate case there and anticipate filing that settlement in the near term. They also anticipate filing a general rate case in Idaho yet in the second quarter.
The company's Pipeline segment achieved record first-quarter earnings, up 13.9% from the first quarter of 2024. This segment is executing well on their core strategy and delivering strong results driven by strategic expansion and increased demand for transportation and storage services.
