BISMARCK, N.D., Nov. 22, 2016 /PRNewswire/ -- MDU Resources
Group, Inc. (NYSE: MDU) today announced its capital expenditure
forecast for 2017 through 2021.
"Our capital forecast reflects our resolve to grow our company,"
said David L. Goodin, president and
CEO of MDU Resources. "After completing recent sales of our
exploration and production and refining businesses, our more
streamlined business operations are focused on the growth
opportunities at the regulated energy delivery and construction
materials and services businesses. These businesses provide
opportunities for growth with a lower business-risk profile that is
now much less exposed to commodity prices."
Capital
Expenditures
|
|
Forecast
|
Actual + 2016
Forecast
|
Forecast
|
(in
millions)
|
2016
|
2017
|
2018
|
2019
|
2012 –
2016
|
2017 -
2021
|
Construction
materials and services
|
|
|
|
|
|
|
Construction
materials and contracting
|
$
38
|
$ 43
|
$
55
|
$
46
|
$
204
|
$
236
|
Construction
services
|
32
|
9
|
9
|
10
|
127
|
49
|
Total
|
$
70
|
$ 52
|
$
64
|
$
56
|
$
331
|
$
285
|
Regulated energy
delivery
Electric
|
$
127
|
$ 135
|
$ 140
|
$ 110
|
$
926
|
$
582
|
Natural gas
distribution
|
134
|
135
|
134
|
147
|
617
|
659
|
Pipeline and
midstream
|
40
|
37
|
57
|
120
|
294
|
382
|
Total
|
$
301
|
$ 307
|
$ 331
|
$ 377
|
$ 1,837
|
$ 1,623
|
Additional growth
capital
|
$
-
|
$ 150
|
$ 150
|
$
-
|
$
-
|
$
300
|
Total*
|
$
371
|
$ 509
|
$ 545
|
$ 433
|
$ 2,168
|
$ 2,208
|
* Excludes "Other"
category as well as assumed net proceeds from the sale or
disposition of property.
|
"Our forecast for 2017 through 2021 includes line-of-sight
opportunities at our business units as well as additional growth
capital. This additional capital is not allocated to a specific
business unit and will be invested based on the risk-adjusted
return potential of opportunities that are identified by our
business development teams," Goodin said.
The company expects its electric and natural gas utility to grow
its rate base approximately 4 percent annually over the next
five years on a compound basis. This growth projection is on a much
larger base, having grown rate base at a record pace of
11 percent compounded annually over the past five-year period.
MDU Resources' utility operations are spread across eight states
where customer growth is expected to be higher than the national
average. This customer growth, along with system upgrades and
replacements needed to supply safe and reliable service, will
require investments in new electric generation and transmission,
and electric and natural gas distribution.
Included in the utility's five-year capital investment program
is a 345-kilovolt transmission line from Ellendale, North Dakota, to Big Stone City, South Dakota, about 160 miles,
which is expected to be completed in 2019. The company also is in
the process of completing its 2017 Integrated Resource Plan and is
evaluating its future generation and power supply portfolio
options. The IRP will be finalized and filed by mid-2017. Future
resource requirements identified in the IRP could require
additional investment that would be incremental to the company's
five-year capital expenditures forecast.
The capital investment program at the pipeline and midstream
business reflects organic growth projects and includes the
previously announced Valley Expansion project, a 38-mile pipeline
that will deliver natural gas supply to eastern North Dakota and far western Minnesota. This business is focused on
improving existing operations and accelerating growth in its
current markets while evaluating expansion into other basins.
At the company's construction materials and services businesses,
the capital expenditures forecast is focused primarily on normal
equipment and plant replacements and upgrades. The passage of the
$305 billion, five-year highway bill for funding of
transportation infrastructure projects is a key part of the
construction materials market and is expected to provide organic
growth opportunities for this business. The company has sufficient
working capital liquidity under its short-term credit facilities to
take advantage of these opportunities. In addition to organic
growth, the construction businesses are focused on growth through
mergers and acquisitions, which would be funded through the
additional growth capital of our five-year forecast.
"We are well-positioned to grow through organic opportunities at
our regulated energy delivery businesses, as well as through the
robust momentum we see in our construction businesses," Goodin
said. "We also see potential for merger and acquisition
opportunities in all of our businesses. We expect, with a lower
overall business-risk profile, to grow and generate solid long-term
value for MDU Resources' shareholders."
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 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 Form
10‑Q.
About MDU Resources
MDU Resources Group, Inc., a
member of the S&P MidCap 400 index and the S&P High-Yield
Dividend Aristocrats index, provides essential products and
services through its regulated energy delivery and construction
materials and services businesses. For more information about MDU
Resources, see the company's website at www.mdu.com or contact the
Investor Relations Department at investor@mduresources.com.
Contacts
Financial:
Janelle Steiner, assistant treasurer,
701-530-1031
Media:
Laura Lueder,
manager of communications and public relations, 701-530-1095
Logo - http://photos.prnewswire.com/prnh/20161102/435402LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mdu-resources-provides-five-year-capital-plan-forecast-300367657.html
SOURCE MDU Resources Group, Inc.