BISMARCK, N.D., Feb. 1, 2017 /PRNewswire/ -- MDU Resources Group,
Inc. (NYSE: MDU) today reported 2016 earnings from continuing
operations of $232.4 million, or
$1.19 per share, compared to 2015
earnings from continuing operations of $175.7 million, or 90
cents per share. In the fourth quarter of 2016, earnings
from continuing operations were $66.3
million, or 33 cents per
share, compared to $55.7 million, or 29
cents per share, in 2015.
Including discontinued operations, primarily the exploration and
production and refining businesses, MDU Resources reported 2016
earnings of $63.7 million, or
33 cents per share, compared to a
loss of $623.1 million, or
$3.20 per share, in 2015. In the
fourth quarter of 2016, earnings including discontinued operations
were $65.5 million, or 33 cents per share, compared to fourth quarter
2015's earnings of $52.4 million, or
27 cents per share.
Highlights include:
- Total construction materials and services earnings of
$136.6 million, an increase of 21
percent.
- Construction materials reported record earnings and record
year-end backlog.
- Construction services earnings increased 43 percent.
- Total regulated energy delivery earnings of $92.7 million, an increase of 27 percent.
- Electric and natural gas utility earnings increased 16
percent.
- Pipeline and midstream business experienced a 59 percent
increase in natural gas storage levels.
- Completion of strategic exit of commodity price-sensitive
businesses.
- Initiated 2017 earnings per share guidance in the range of
$1.10 to $1.25.
"We are building a strong America and have solid momentum going
into 2017," said David L. Goodin,
president and CEO of MDU Resources. "We successfully completed
several strategic moves, including fully exiting from our
exploration and production business, the refining business and,
more recently, our interest in the Pronghorn natural gas processing
plant, which have lowered our business risk profile and positioned
us for future growth.
"Our continuing operations increased earnings per share by 32
percent in 2016, led by record results at our construction
materials business," Goodin said. "As we move into 2017, we expect
to build on our momentum through organic growth opportunities, and
we are open to strategic acquisitions as they are identified by our
construction materials and services and regulated energy delivery
businesses. We previously announced our five-year, $1.9 billion capital plan with an additional
$300 million available in 2017 and
2018 for high-value projects.
"Also in 2017, our construction materials business anticipates
more projects being bid from the FAST (Fixing America's Surface
Transportation) Act, and our construction services business is
focused on projects with strong margins. Our utility operations
continue to pursue regulatory recovery for costs associated with
serving steady customer growth. Our pipeline and midstream business
also continues to work on projects to serve customer growth with
added capacity and improved reliability, like the Valley Expansion
pipeline in eastern North Dakota
and far western Minnesota that's
expected to be under construction in early 2018," Goodin said.
Business Unit Results
Construction Materials and
Services
The construction materials business reported record
earnings of $102.7 million for 2016,
up 15 percent from record earnings of $89.1
million in 2015. This business saw higher construction
margins and demand in all regions except the North Central, where
activity was down in North Dakota.
This business benefited from a $6.7 million (after tax) reduction to a
previously recorded multiemployer pension plan withdrawal
liability; while 2015 earnings reflect an increase to a
multiemployer pension plan withdrawal liability of $1.5 million (after tax). In addition,
asphalt and aggregate volumes and margins increased. Construction
materials had record year-end backlog of $538 million, which is 10 percent higher than the
previous record year-end backlog of $491
million set in 2015.
Earnings at the construction services business were $33.9 million, up 43 percent from $23.8 million in 2015 on 16 percent revenue
growth. The increase was driven mainly by higher construction
workloads and margins in the Western Region. In the fourth quarter,
this business completed the sale of one of the largest community
solar projects in the United
States, on which it provided turnkey engineering,
procurement and construction. This business ended 2016 with backlog
of $475 million, down slightly from
$493 million in 2015, but sees a
strong bidding environment in 2017.
Regulated Energy Delivery
The electric and natural gas
utility reported earnings of $69.3
million for 2016, up 16 percent compared to $59.5 million in 2015. The increase was driven
mainly by cost recovery through regulatory relief. Customer growth
and colder weather in certain regions also resulted in
4 percent higher natural gas retail sales volumes. The
utility's customer base grew 1.6 percent in 2016 to approximately
1.07 million customers, and it expects its customer base to
continue to grow at a rate of 1 to 2 percent annually. The
utility continues to seek regulatory recovery for costs associated
with upgrading and expanding facilities to meet customer demand.
Regulatory activity has resulted in $32.7 million in increases to final rates in
2016 and 2017 to date, including an electric rate increase of
$2.7 million approved
Jan. 18, 2017, by the Wyoming Public
Service Commission that will take effect March 1.
2016 earnings at the pipeline and midstream business were
$23.4 million, compared to earnings
of $13.3 million in 2015. Higher
customer utilization of natural gas storage services, which
increased 59 percent in 2016, led to a slight increase in
earnings even though this business recorded a $1.4 million (after tax) impairment in 2016 and a
$10.6 million (after tax) impairment
in 2015 associated with the sale of certain non-strategic assets.
On Jan. 1, this business closed on
the previously announced sale of its 50 percent non-operating
ownership interest in the Pronghorn natural gas processing plant in
North Dakota and the company
received proceeds of approximately $100
million.
Discontinued Operations
The results of the company's
former exploration and production and refining businesses have been
reported as discontinued operations. The company has included in
the "other" category any continuing results from these businesses,
such as general and administrative and interest expenses. These
expenses are expected to diminish over time, with an estimated
impact of 1 cent per share in
2017.
2017 Earnings Guidance
MDU Resources has initiated
2017 earnings per share guidance in the range of $1.10 to $1.25.
"This range reflects what we know today about our company's
operating conditions," Goodin said. "While we are optimistic about
what we anticipate will be positive impacts from potential tax
reform, incremental infrastructure spending and regulatory changes
proposed by our country's new administration, these opportunities
will be evaluated by our management team when they are
enacted."
Conference Call
The company will host a webcast at
10 a.m. EST Feb. 2 to discuss 2016 earnings results and 2017
guidance. The event can be accessed at www.mdu.com. Webcast and
audio replays will be available. The dial-in number for audio
replay, available through Feb. 16, is
855-859-2056, or 404-537-3406 for international callers, conference
ID 33818055.
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, 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, see the company's website
at www.mdu.com or contact the Investor Relations Department at
investor@mduresources.com.
Contacts
Financial: Doran Schwartz, vice president and chief
financial officer, 701-530-1750
Media: Laura Lueder, manager
of communications and public relations, 701-530-1095
Performance Summary and Future Outlook
The following information highlights the key growth
strategies, projections and certain assumptions for the company and
its subsidiaries and other matters for each of the company's
businesses. Many of these highlighted points are "forward-looking
statements." There is no assurance that the company's projections,
including estimates for growth and changes in earnings, will in
fact be achieved. Please refer to assumptions contained in this
section, as well as the various important factors listed at the end
of this document under the heading "Risk Factors and Cautionary
Statements that May Affect Future Results." Changes in such
assumptions and factors could cause actual future results to differ
materially from growth and earnings projections.
GAAP
Earnings
|
|
|
|
|
Business
Line
|
Fourth
Quarter
2016
Earnings
|
Fourth
Quarter
2015
Earnings
|
2016
Earnings
|
2015
Earnings
|
|
(In
millions)
|
Construction
materials and services
|
$
|
27.6
|
|
$
|
22.0
|
|
$
|
136.6
|
|
$
|
112.9
|
|
Regulated energy
delivery
|
37.7
|
|
35.6
|
|
92.7
|
|
72.8
|
|
Other and
eliminations*
|
1.0
|
|
(1.9)
|
|
3.1
|
|
(10.0)
|
|
Earnings from
continuing operations
|
66.3
|
|
55.7
|
|
232.4
|
|
175.7
|
|
Loss from
discontinued operations, net of tax
|
(.8)
|
|
(17.5)
|
|
(300.4)
|
|
(834.1)
|
|
Loss from
discontinued operations attributable to noncontrolling
interest
|
—
|
|
(14.2)
|
|
(131.7)
|
|
(35.3)
|
|
Earnings (loss) on
common stock
|
$
|
65.5
|
|
$
|
52.4
|
|
$
|
63.7
|
|
$
|
(623.1)
|
|
Earnings (loss) per
share:
|
|
|
|
|
Earnings from
continuing operations
|
$
|
.33
|
|
$
|
.29
|
|
$
|
1.19
|
|
$
|
.90
|
|
Discontinued
operations attributable to the company, net of tax
|
—
|
|
(.02)
|
|
(.86)
|
|
(4.10)
|
|
Earnings (loss) per
share
|
$
|
.33
|
|
$
|
.27
|
|
$
|
.33
|
|
$
|
(3.20)
|
|
* Includes
eliminations for the presentation of income tax adjustments between
continuing and discontinued operations.
|
On a consolidated basis, the following information highlights
the key growth strategies, projections and certain assumptions for
the company:
- Earnings per share for 2017 are projected to be in the range of
$1.10 to $1.25.
- The company's long-term compound annual growth goal on earnings
per share is 5 to 8 percent.
- The company continually seeks opportunities to expand through
organic growth opportunities and strategic acquisitions.
- Capital expenditures for 2016 and estimated capital
expenditures for 2017 through 2021 are noted in the following
table:
Capital
Expenditures
|
Business
Line
|
2016
Actual
|
2017
Estimated
|
2018
Estimated
|
2019
Estimated
|
2017 -
2021
Total
Estimated
|
|
|
|
(In
millions)
|
|
|
Construction
materials and services
|
|
|
|
|
|
Construction
materials and contracting
|
$
|
38
|
|
$
|
43
|
|
$
|
55
|
|
$
|
46
|
|
$
|
236
|
|
Construction
services
|
60
|
|
9
|
|
9
|
|
10
|
|
49
|
|
|
98
|
|
52
|
|
64
|
|
56
|
|
285
|
|
Regulated energy
delivery
|
|
|
|
|
|
Electric
|
111
|
|
142
|
|
140
|
|
110
|
|
589
|
|
Natural gas
distribution
|
126
|
|
135
|
|
134
|
|
147
|
|
659
|
|
Pipeline and
midstream
|
35
|
|
41
|
|
57
|
|
120
|
|
387
|
|
|
272
|
|
318
|
|
331
|
|
377
|
|
1,635
|
|
Other
|
2
|
|
3
|
|
2
|
|
2
|
|
11
|
|
Additional growth
capital
|
—
|
|
150
|
|
150
|
|
—
|
|
300
|
|
Net proceeds and
other*
|
(57)
|
|
(107)
|
|
(6)
|
|
(6)
|
|
(133)
|
|
Total capital
expenditures
|
$
|
315
|
|
$
|
416
|
|
$
|
541
|
|
$
|
429
|
|
$
|
2,098
|
|
|
|
|
|
|
|
* Excludes capital
expenditures for discontinued operations and sale proceeds for the
exploration and production and refining businesses.
|
Capital expenditures for 2017 through 2021 include line-of-sight
opportunities at the company's 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 the company's business development teams.
Based on the current level of capital expenditures and other key
assumptions in the 2017 financial forecast, the company is not
planning to issue equity this year. Estimated operating cash flows
from operations are $425 million to $475
million in 2017.
Construction
Materials and Services
|
Construction
Materials and Contracting
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
|
|
December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
(Dollars in
millions)
|
Operating
revenues
|
$
|
398.3
|
|
$
|
426.3
|
|
|
$
|
1,874.3
|
|
$
|
1,904.3
|
|
Operating
expenses:
|
|
|
|
|
|
Operation and
maintenance
|
352.0
|
|
385.8
|
|
|
1,595.4
|
|
1,652.3
|
|
Depreciation,
depletion and amortization
|
14.1
|
|
16.9
|
|
|
58.4
|
|
65.9
|
|
Taxes, other than
income
|
8.1
|
|
7.9
|
|
|
41.8
|
|
40.1
|
|
|
374.2
|
|
410.6
|
|
|
1,695.6
|
|
1,758.3
|
|
Operating
income
|
24.1
|
|
15.7
|
|
|
178.7
|
|
146.0
|
|
Earnings
|
$
|
13.9
|
|
$
|
14.8
|
|
|
$
|
102.7
|
|
$
|
89.1
|
|
Sales
(000's):
|
|
|
|
|
|
Aggregates
(tons)
|
6,299
|
|
6,213
|
|
|
27,580
|
|
26,959
|
|
Asphalt
(tons)
|
1,244
|
|
1,238
|
|
|
7,203
|
|
6,705
|
|
Ready-mixed concrete
(cubic yards)
|
815
|
|
869
|
|
|
3,655
|
|
3,592
|
|
|
|
|
|
|
Construction
Services
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
|
|
December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
(In
millions)
|
Operating
revenues
|
$
|
250.5
|
|
$
|
238.5
|
|
|
$
|
1,073.3
|
|
$
|
926.4
|
|
Operating
expenses:
|
|
|
|
|
|
Operation and
maintenance
|
215.2
|
|
214.5
|
|
|
965.3
|
|
838.5
|
|
Depreciation,
depletion and amortization
|
3.9
|
|
3.5
|
|
|
15.3
|
|
13.4
|
|
Taxes, other than
income
|
9.3
|
|
7.1
|
|
|
39.0
|
|
31.1
|
|
|
228.4
|
|
225.1
|
|
|
1,019.6
|
|
883.0
|
|
Operating
income
|
22.1
|
|
13.4
|
|
|
53.7
|
|
43.4
|
|
Earnings
|
$
|
13.7
|
|
$
|
7.2
|
|
|
$
|
33.9
|
|
$
|
23.8
|
|
The combined construction materials and services businesses
reported earnings of $136.6 million for 2016, compared to
$112.9 million in 2015. The
increase in earnings reflects higher construction workloads and
margins in the Western Region at the services business. Also
contributing to the increase were higher construction margins and
workloads; a $6.7 million (after tax)
reduction to a previously recorded multiemployer pension plan
withdrawal liability, while 2015 earnings reflect an increase to a
multiemployer pension plan withdrawal liability of $1.5 million (after tax); and higher asphalt
and aggregate volumes and margins at the materials business. These
increases were partially offset by higher income taxes at the
materials business and lower equipment sales and rental margins at
the services business.
Fourth quarter earnings for the combined construction materials
and services businesses were $27.6 million, compared to $22.0 million in 2015. The increase in
earnings reflects higher construction workloads and margins in the
Western Region at the services business, a $6.7 million (after tax) reduction to a
previously recorded multiemployer pension plan withdrawal liability
in 2016 at the material business, as well as higher aggregate
volumes and margins. These increases were partially offset by
higher income taxes, lower ready-mixed concrete volumes and margins
and lower other product line margins at the materials business.
The following information highlights the key growth strategies,
projections and certain assumptions for the construction
segments:
- The construction materials work backlog at Dec. 31 was $538
million, compared to $491
million a year ago.
- The construction services work backlog at 2016 year-end was
$475 million, compared to
$493 million a year ago. The
construction services backlog includes transmission, distribution,
substation, industrial, petrochemical, high technology, solar
energy renewables, research and development, higher education,
government, transportation, health care, hospitality, gaming,
commercial, institutional and service work.
- Projected revenues included in the company's 2017 earnings
guidance are in the range of $1.85 billion
to $1.95 billion for construction materials and $1.0 billion to $1.1 billion for construction
services.
- The company anticipates margins in 2017 to be slightly higher
at construction materials compared to 2016 and construction
services' 2017 margins are expected to be comparable to 2016.
- In December 2015, a $305 billion, five-year federal highway bill was
passed for funding of transportation infrastructure projects that
are a key part of the construction materials market.
- The construction services business continues to pursue
opportunities for expansion in energy projects, such as
petrochemical, transmission, substations, utility services, and
renewables. Initiatives are aimed at capturing additional market
share and expanding into new markets.
- As the country's fifth-largest sand and gravel producer,
construction materials will continue to strategically manage its 1
billion tons of aggregate reserves in all its markets, as well as
take further advantage of being vertically integrated.
- As the 13th-largest specialty contractor, as ranked on
Engineering News-Record's 2016 Top 600 Specialty Contractors list,
construction services continues to pursue opportunities for
expansion and execute initiatives in current and new markets that
align with the company's expertise, resources and strategic growth
plan.
Regulated Energy
Delivery
|
Electric
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
|
|
December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
(Dollars in millions,
where applicable)
|
Operating
revenues
|
$
|
83.4
|
|
$
|
70.0
|
|
|
$
|
322.3
|
|
$
|
280.6
|
|
Operating
expenses:
|
|
|
|
|
|
Fuel and purchased
power
|
20.8
|
|
22.5
|
|
|
75.5
|
|
86.2
|
|
Operation and
maintenance
|
30.5
|
|
22.6
|
|
|
115.2
|
|
87.7
|
|
Depreciation,
depletion and amortization
|
12.4
|
|
9.5
|
|
|
50.2
|
|
37.6
|
|
Taxes, other than
income
|
2.7
|
|
2.0
|
|
|
12.9
|
|
11.1
|
|
|
66.4
|
|
56.6
|
|
|
253.8
|
|
222.6
|
|
Operating
income
|
17.0
|
|
13.4
|
|
|
68.5
|
|
58.0
|
|
Earnings
|
$
|
10.4
|
|
$
|
9.1
|
|
|
$
|
42.2
|
|
$
|
35.9
|
|
Retail sales
(million kWh):
|
|
|
|
|
|
Residential
|
296.9
|
|
288.0
|
|
|
1,132.5
|
|
1,173.9
|
|
Commercial
|
402.2
|
|
382.8
|
|
|
1,491.8
|
|
1,499.6
|
|
Industrial
|
142.3
|
|
146.3
|
|
|
544.2
|
|
550.3
|
|
Other
|
23.5
|
|
23.1
|
|
|
90.0
|
|
92.2
|
|
|
864.9
|
|
840.2
|
|
|
3,258.5
|
|
3,316.0
|
|
Average cost of
fuel and purchased power per kWh
|
$
|
.023
|
|
$
|
.025
|
|
|
$
|
.021
|
|
$
|
.024
|
|
|
|
|
|
Natural Gas
Distribution
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
|
|
December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
(Dollars in
millions)
|
Operating
revenues
|
$
|
266.0
|
|
$
|
264.4
|
|
|
$
|
766.1
|
|
$
|
817.4
|
|
Operating
expenses:
|
|
|
|
|
|
Purchased natural gas
sold
|
157.8
|
|
162.5
|
|
|
431.5
|
|
499.0
|
|
Operation and
maintenance
|
41.5
|
|
40.0
|
|
|
158.1
|
|
153.5
|
|
Depreciation,
depletion and amortization
|
15.8
|
|
20.5
|
|
|
65.4
|
|
64.8
|
|
Taxes, other than
income
|
11.8
|
|
12.3
|
|
|
46.1
|
|
46.3
|
|
|
226.9
|
|
235.3
|
|
|
701.1
|
|
763.6
|
|
Operating
income
|
39.1
|
|
29.1
|
|
|
65.0
|
|
53.8
|
|
Earnings
|
$
|
22.2
|
|
$
|
19.8
|
|
|
$
|
27.1
|
|
$
|
23.6
|
|
|
|
|
|
|
|
Volumes
(MMdk)
|
|
|
|
|
|
Sales:
|
|
|
|
|
|
Residential
|
22.0
|
|
20.7
|
|
|
56.2
|
|
54.0
|
|
Commercial
|
14.4
|
|
13.4
|
|
|
38.9
|
|
37.6
|
|
Industrial
|
1.2
|
|
1.1
|
|
|
4.2
|
|
4.0
|
|
|
37.6
|
|
35.2
|
|
|
99.3
|
|
95.6
|
|
Transportation:
|
|
|
|
|
|
Commercial
|
.6
|
|
.6
|
|
|
1.8
|
|
1.8
|
|
Industrial
|
37.6
|
|
44.5
|
|
|
145.8
|
|
152.4
|
|
|
38.2
|
|
45.1
|
|
|
147.6
|
|
154.2
|
|
Total
throughput
|
75.8
|
|
80.3
|
|
|
246.9
|
|
249.8
|
|
Degree days (% of
normal)*
|
|
|
|
|
|
Montana-Dakota/Great
Plains
|
95
|
%
|
88
|
%
|
|
89
|
%
|
88
|
%
|
Cascade
|
97
|
%
|
89
|
%
|
|
87
|
%
|
83
|
%
|
Intermountain
|
100
|
%
|
95
|
%
|
|
96
|
%
|
89
|
%
|
* Degree days are a
measure of the daily temperature-related demand for energy for
heating.
|
The combined utility businesses reported earnings of
$69.3 million in 2016, compared
to $59.5 million in 2015. This
increase in earnings reflects higher electric retail sales margins,
largely due to approved final and interim rate increases reduced in
part by decreased electric sales volumes to residential customers.
Also contributing to higher earnings were higher natural gas retail
sales margins resulting from increased retail sales volumes to all
customer classes, due to customer growth and colder weather in
certain regions, and final and interim rate increases. Partially
offsetting these increases were higher operation and maintenance
expense, largely related to higher contract services and higher
payroll-related costs, higher depreciation, depletion and
amortization due to increased plant additions, and lower other
income, primarily lower allowance for funds used during
construction. Certain of the higher operation and maintenance
expense, higher depreciation, depletion and amortization expense
and higher production tax credits in 2016, due to increased capital
investments at the electric utility, are potentially recoverable
and/or refundable through the rate recovery process.
The combined utility businesses' fourth quarter earnings were
$32.6 million, compared to
$28.9 million in 2015. The
increase in earnings reflects higher electric retail sales margins
due to approved rate recovery and increased volumes, as well as
higher natural gas retail margins, largely the result of increased
volumes due to colder weather and approved final and interim rate
increases. Partially offsetting these increases were higher
operation and maintenance expense and lower other income, as
previously discussed.
The following information highlights the key growth strategies,
projections and certain assumptions for the utility segments:
- The company expects to grow its rate base by 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 12 percent compounded annually over the past
five-year period. The 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. Rate base at year-end
was $1.91 billion.
- The company expects its customer base to grow by 1 to 2 percent
per year.
- In June 2016, the company, along
with a partner, began to build a 345-kilovolt transmission line
from Ellendale, North Dakota, to
Big Stone City, South Dakota, a
distance of about 160 miles. The project has been approved as a
Midcontinent Independent System Operator multivalue project. More
than 97 percent of the necessary easements have been secured. The
company expects the project to be completed in 2019.
- The company signed a 25-year agreement to purchase the power
from a wind farm expansion in southwest North Dakota. The agreement also includes an
option to buy the project at the close of construction. The
expansion of the Thunder Spirit Wind farm will boost the combined
production at the wind farm to approximately 150 megawatts of
renewable energy and will increase the company's generation
portfolio from approximately 22 percent renewables to 27 percent.
The original 107.5-MW Thunder Spirit Wind farm includes 43
turbines; it was purchased by the company in December 2015. The expansion includes 13 to 16
turbines, depending on the turbine size selected. It is expected to
be online in December 2018. If the
company buys the project, the capital will be incremental to the
capital expenditure forecast. Construction costs for the project
are estimated to be $85 million.
- The company is in the process of completing its 2017 Integrated
Resource Plan and is evaluating its future generation and power
supply portfolio options, including a large-scale resource. The IRP
will be finalized and will be required to be filed by mid-2017.
Future resource requirements identified in the IRP could require
investment that would be incremental to the five-year capital
expenditures forecast.
- The company is involved with a number of pipeline projects to
enhance the reliability and deliverability of its system.
- The company is focused on organic growth, while monitoring
potential merger and acquisition opportunities.
- The company is evaluating the final Clean Power Plan rule
published by the Environmental Protection Agency in October 2015, which requires existing fossil
fuel-fired electric generation facilities to reduce carbon dioxide
emissions. It is unknown at this time what each state will require
for emissions limits or reductions from each of the company's owned
and jointly owned fossil fuel-fired electric generating units. In
February 2016, the U.S. Supreme Court
granted an application for a stay of the Clean Power Plan pending
the outcome of legal challenges. The company has not included
capital expenditures in its five-year forecast for the potential
compliance requirements of the Clean Power Plan.
- Regulatory actions
Completed Cases:
Since Jan. 1, 2015, the company has
finalized rate increases totaling $56.8
million in annual revenue. This includes electric rate
proceedings in Montana,
North Dakota, South Dakota, Wyoming and before the FERC, and natural gas
proceedings in Minnesota,
Montana, North Dakota, Oregon, South
Dakota, Washington and
Wyoming. Cases recently completed
were:
- On April 29, 2016, the company
filed an application with the Oregon Public Utility Commission for
a natural gas rate increase of approximately $1.9 million annually or approximately 2.8
percent above current rates. The request includes rate recovery
associated with pipeline replacement and improvement projects to
ensure the integrity of the company's system. On Oct. 6, 2016, the company, staff of the OPUC and
the interveners in the case filed a stipulation and settlement
agreement reflecting an annual increase of approximately
$754,000 to be effective March 1, 2017. The OPUC issued an order approving
the stipulation and settlement agreement on Dec. 12, 2016.
- On June 10, 2016, the company
filed an application for an increase in electric rates with the
WYPSC. The company requested an increase of approximately
$3.2 million annually or
approximately 13.1 percent above current rates to recover the
company's increased investment in facilities along with additional
depreciation, operation and maintenance expenses including
increased fuel costs, and taxes associated with the increases in
investment. On Dec. 28, 2016, the
company and the interveners of the case filed a stipulation and
agreement reflecting an increase of approximately $2.7 million annually or approximately 11.1
percent above current rates effective for service rendered on and
after March 1, 2017. The WYPSC
rendered a bench decision approving the stipulation and agreement
on Jan. 18, 2017.
- On Dec. 2, 2016, the company
filed an application with the Montana Public Service Commission
requesting authority to implement gas and electric tax tracking
adjustments for Montana state and
local taxes and fees that reflect the changes in state and local
property taxes applicable to the gas and electric utilities
pursuant to Montana law. The tax
tracking adjustments would result in an increase in revenues of
approximately $814,000. On
Jan. 17, 2017, the MTPSC issued an
order on the tax tracking adjustments. The gas tracking adjustment
was approved as an increase to revenues of approximately
$474,000 effective Jan. 1, 2017. The electric tax tracking
adjustment has not been determined, as discussed in pending
cases.
- On Sept. 1, 2016, and as amended
on Jan. 10, 2017, the company
submitted an update to its transmission formula rate under the MISO
tariff, including a revenue requirement for the company's
multivalue project along with a true-up of prior year expenditures
of $11.1 million, which was effective
Jan. 1, 2017.
Pending Cases:
The company is requesting rate increases totaling $55.4 million in annual revenue, which includes
$43.6 million in implemented interim
rates. Cases pending are:
- On Oct. 26, 2015, the company
filed an application with the North Dakota Public Service
Commission requesting a renewable resource cost adjustment rider
for the recovery of the Thunder Spirit Wind project. On
Jan. 5, 2016, the NDPSC approved the
rider to be effective Jan. 7, 2016,
resulting in an annual increase on an interim basis, subject to
refund, of $15.1 million based upon a
10.5 percent return on equity. The interim rate is pending the
determination of the return on equity in the general rate case
application filed Oct. 14, 2016.
- On Oct. 26, 2015, the company
filed an application with the NDPSC for an update to the electric
generation resource recovery rider. On March
9, 2016, the NDPSC approved the rider to be effective with
service rendered on and after March 15,
2016, which resulted in interim rates, subject to refund, of
$9.7 million based upon a 10.5
percent return on equity. The interim rates include recovery of the
company's investment in the 88-MW simple-cycle natural gas turbine
and associated facilities near Mandan,
North Dakota, and the 19 MW of new generation from natural
gas-fired internal combustion engines and associated facilities
near Sidney, Montana. The net
investment authorized for the natural gas-fired internal combustion
engines and the return on equity on both investments are pending in
the general rate case application filed Oct.
14, 2016.
- On Nov. 25, 2015, the company
filed an application with the NDPSC for an update of its
transmission cost adjustment rider for recovery of MISO-related
charges and two transmission projects in North Dakota. On Feb.
10, 2016, the NDPSC approved the transmission cost
adjustment effective with service rendered on and after
Feb. 12, 2016, resulting in an annual
increase on an interim basis, subject to refund, of $6.8 million based upon a 10.5 percent return on
equity. The interim rate is pending the determination of the return
on equity in the general rate case application filed Oct. 14, 2016.
- On Aug. 12, 2016, the company
filed an application with the Idaho Public Utilities Commission for
a natural gas rate increase of approximately $10.2 million annually or approximately 4.1
percent above current rates. The request includes rate recovery
associated with increased investment in facilities and increased
operating expenses. On Nov. 23, 2016,
the company provided the IPUC with an updated revenue request of
approximately $9.6 million. A hearing
has been scheduled for March 1-2,
2017. This matter is pending before the IPUC.
- On Oct. 14, 2016, the company
filed an application with the NDPSC for an electric rate increase
of approximately $13.4 million
annually or approximately 6.6 percent above current rates. The
request includes rate recovery associated with increased investment
in facilities, along with the related depreciation, operation and
maintenance expenses and taxes associated with the increased
investment. The company requested an interim increase of
approximately $13.0 million or 6.5
percent, subject to refund, to be effective within 60 days of the
filing. On Nov. 21, 2016, the company
filed a revised interim increase of approximately $11.7 million, based on adjustments accepted by
the NDPSC, or approximately 5.8 percent above current rates,
subject to refund. The NDPSC approved the revised interim rates
effective with service rendered on or after Dec. 13, 2016. A technical hearing is scheduled
for April 10, 2017. This matter is
pending before the NDPSC.
- On Dec. 2, 2016, the company
filed an application with the MTPSC requesting authority to
implement gas and electric tax tracking adjustments for
Montana state and local taxes and
fees that reflect the changes in state and local property taxes
applicable to the gas and electric utilities pursuant to
Montana law. The tax tracking
adjustments would result in an increase in revenues of
approximately $814,000. On
Jan. 17, 2017, the MTPSC issued an
order on the tax tracking adjustments. The gas tracking adjustment
for $474,000 was approved, as
discussed in completed cases. The electric tax tracking adjustment,
to be effective May 15, 2017, has not
been determined.
- On Dec. 21, 2016, the company
filed an application with the Minnesota Public Utilities Commission
requesting authority to implement a gas utility infrastructure cost
tariff of approximately $456,000
annually, effective beginning with service rendered May 20, 2017. The tariff will allow the company
to recover infrastructure investments, not previously included in
rates, mandated by federal or state agencies associated with the
company's pipeline integrity programs. This matter is pending
before the MNPUC.
Pipeline and
Midstream
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
|
|
December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
(Dollars
in millions)
|
Operating
revenues
|
$
|
35.8
|
|
$
|
36.9
|
|
|
$
|
141.6
|
|
$
|
154.9
|
|
Operating
expenses:
|
|
|
|
|
|
Operation and
maintenance
|
18.3
|
|
15.8
|
|
|
61.4
|
|
84.7
|
|
Depreciation,
depletion and amortization
|
6.4
|
|
6.2
|
|
|
24.9
|
|
28.0
|
|
Taxes, other than
income
|
3.0
|
|
2.6
|
|
|
11.9
|
|
12.2
|
|
|
27.7
|
|
24.6
|
|
|
98.2
|
|
124.9
|
|
Operating
income
|
8.1
|
|
12.3
|
|
|
43.4
|
|
30.0
|
|
Earnings
|
$
|
5.1
|
|
$
|
6.7
|
|
|
$
|
23.4
|
|
$
|
13.3
|
|
Transportation
volumes (MMdk)
|
68.1
|
|
79.7
|
|
|
285.3
|
|
290.5
|
|
Natural gas
gathering volumes (MMdk)
|
5.1
|
|
6.8
|
|
|
20.0
|
|
33.4
|
|
Customer natural
gas storage balance (MMdk):
|
|
|
|
|
|
Beginning of
period
|
35.3
|
|
19.3
|
|
|
16.6
|
|
14.9
|
|
Net injection
(withdrawal)
|
(8.9)
|
|
(2.7)
|
|
|
9.8
|
|
1.7
|
|
End of
period
|
26.4
|
|
16.6
|
|
|
26.4
|
|
16.6
|
|
The pipeline and midstream business reported earnings of
$23.4 million, compared to
$13.3 million in 2015. The
earnings increase reflects lower operation and maintenance expense,
primarily the absence in 2016 of impairments of natural gas
gathering assets of $10.6 million (after tax), lower payroll
costs and material costs, partially offset by a fair value
impairment of $1.4 million
(after tax) associated with the Pronghorn sale. Also contributing
to the increase were lower depreciation, depletion and amortization
expense, largely due to the sale of certain non-strategic natural
gas gathering assets in the fourth quarter of 2015, and higher
storage services earnings. Partially offsetting these increases
were lower gathering and processing earnings due to the sale of
certain non-strategic assets, as previously discussed, and lower
earnings at Pronghorn.
Fourth quarter earnings were $5.1 million, compared to $6.7 million in 2015. The decrease in
earnings is primarily the result of a $1.4 million (after tax) fair value
impairment associated with the sale of Pronghorn, as previously
discussed. The business also experienced lower gathering and
processing earnings due to lower natural gas gathering volumes,
primarily due to the sale of certain non-strategic assets, as
previously discussed, offset by higher storage services
earnings.
The following information highlights the key growth strategies,
projections and certain assumptions for this segment:
- In September 2016, the company
secured sufficient capacity commitments and started survey work on
a 38-mile pipeline that will deliver natural gas supply to eastern
North Dakota and far western
Minnesota. The Valley Expansion
project will connect the Viking Gas Transmission Co. pipeline near
Felton, Minnesota, to the
company's existing pipeline near Mapleton, North Dakota. Cost of the expansion
is estimated at $55 million to $60
million. The project, which is designed to transport 40
million cubic feet of natural gas per day, is under the
jurisdiction of the Federal Energy Regulatory Commission. In
October, the company received FERC approval on its pre-filing for
the Valley Expansion project. With minor enhancements, the pipeline
will be able to transport significantly more volume if required,
based on capacity requested or as needed in the future as the
region's demand grows. Following receipt of necessary permits and
regulatory approvals, construction is expected to begin in early
2018 with completion expected late that same year.
- The company signed agreements to complete expansion projects,
including the Charbonneau and Line Section 25 expansion project.
The Charbonneau and Line Section 25 expansion project will include
a new compression station as well as other compression
modifications and is expected to be in service in the second
quarter of 2017. In addition, the company completed the North
Badlands project, which includes a 4-mile loop of the Garden Creek
pipeline segment and other ancillary facilities, and it was placed
in service on Aug. 1, 2016. The
Northwest North Dakota project,
which includes modification of existing compression, a new
compression unit and re-cylindering, was put into service in
June 2016.
- The company continues to target profitable growth by means of
both organic projects in areas of existing operations and by
looking for potential acquisitions that fit existing expertise and
capabilities.
- The company is focused on improving existing operations and
accelerating growth in its current markets while evaluating
expansion into other basins.
Other
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
|
|
December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
(In
millions)
|
Operating
revenues
|
$
|
1.9
|
|
$
|
2.1
|
|
|
$
|
8.6
|
|
$
|
9.2
|
|
Operating
expenses:
|
|
|
|
|
|
Operation and
maintenance
|
.3
|
|
3.6
|
|
|
6.6
|
|
15.4
|
|
Depreciation,
depletion and amortization
|
.5
|
|
.5
|
|
|
2.1
|
|
2.1
|
|
Taxes, other than
income
|
—
|
|
—
|
|
|
.1
|
|
.1
|
|
|
.8
|
|
4.1
|
|
|
8.8
|
|
17.6
|
|
Operating income
(loss)
|
1.1
|
|
(2.0)
|
|
|
(.2)
|
|
(8.4)
|
|
Earnings
(loss)
|
$
|
.3
|
|
$
|
(3.4)
|
|
|
$
|
(3.2)
|
|
$
|
(15.0)
|
|
Included in Other are operation and maintenance expense and
interest expense previously allocated to the exploration and
production and refining businesses that do not meet the criteria
for income (loss) from discontinued operations.
The loss decreased $11.8 million in 2016 compared to 2015,
primarily the result of lower operation and maintenance expense and
interest expense previously allocated to the exploration and
production business, due to the sale of this business which
included the repayment of long-term debt. The absence in 2016 of a
foreign currency translation loss including effects of the sale of
the company's remaining interest in the Brazilian Transmission
Lines also contributed to the decreased loss.
Fourth quarter earnings were $300,000 in 2016, compared to a loss of
$3.4 million in 2015. The increase
primarily resulted from lower operation and maintenance expense and
interest expense previously allocated to the exploration and
production business, as previously discussed. Also contributing to
the increase was lower operation and maintenance expense due to the
absence in 2016 of a corporate asset impairment.
Discontinued
Operations
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
|
|
December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
(In
millions)
|
Loss from discontinued
operations before intercompany eliminations, net of tax
|
$
|
(.1)
|
|
$
|
(18.2)
|
|
|
$
|
(303.2)
|
|
$
|
(829.9)
|
|
Intercompany
eliminations*
|
(.7)
|
|
.7
|
|
|
2.8
|
|
(4.2)
|
|
Loss from
discontinued operations, net of tax
|
(.8)
|
|
(17.5)
|
|
|
(300.4)
|
|
(834.1)
|
|
Loss from
discontinued operations attributable to noncontrolling
interest
|
—
|
|
(14.2)
|
|
|
(131.7)
|
|
(35.3)
|
|
Loss from
discontinued operations attributable to the company, net of
tax
|
$
|
(.8)
|
|
$
|
(3.3)
|
|
|
$
|
(168.7)
|
|
$
|
(798.8)
|
|
* Includes
eliminations for the presentation of income tax adjustments between
continuing and discontinued operations.
|
The results of operations for the exploration and production and
refining businesses, except certain general and administrative
costs and interest expense that do not meet the criteria for income
(loss) from discontinued operations (recorded in "Other") are
included in income (loss) from discontinued operations.
The company's discontinued operations reported a loss of
$168.7 million for 2016, compared to
a loss of $798.8 million in 2015. The
decreased loss is primarily due to the completion of the sales of
the company's exploration and production and refining businesses.
The decreased loss was largely the result of the absence in 2016 of
a noncash write-down of oil and natural gas properties of
$315.3 million (after tax) and
fair value impairments of the exploration and production business's
assets held for sale of $475.4 million (after tax), partially offset
by a fair value impairment of the refining business of $156.7 million (after tax) in 2016.
The company's discontinued operations reported a loss of
$800,000 in the fourth quarter of
2016, compared to a loss of $3.3
million in 2015, due to the completion of the sales of the
exploration and production and refining businesses.
Risk Factors and Cautionary Statements That May Affect Future
Results
The information in this release includes certain forward-looking
statements, including earnings per share guidance and statements by
the president and CEO of MDU Resources, within the meaning of
Section 21E of the Securities Exchange Act of 1934. Although the
company believes that its expectations are based on reasonable
assumptions, actual results may differ materially. Following are
important factors that could cause actual results or outcomes for
the company to differ materially from those discussed in
forward-looking statements.
- The company's pipeline and midstream business is dependent on
factors, including commodity prices and commodity price basis
differentials, that are subject to various external influences that
cannot be controlled.
- The regulatory approval, permitting, construction, startup
and/or operation of pipelines and power generation and transmission
facilities may involve unanticipated events or delays that could
negatively impact the company's business and its results of
operations and cash flows.
- Economic volatility, including volatility in North Dakota's Bakken region, affects the
company's operations, as well as the demand for its products and
services and the value of its investments and investment returns
including its pension and other postretirement benefit plans, and
may have a negative impact on the company's future revenues and
cash flows.
- The company relies on financing sources and capital markets.
Access to these markets may be adversely affected by factors beyond
the company's control. If the company is unable to obtain cost
effective financing in the future, the company's ability to execute
its business plans, make capital expenditures or pursue
acquisitions that the company may otherwise rely on for future
growth could be impaired. As a result, the market value of the
company's common stock may be adversely affected. If the company
issues a substantial amount of common stock it could have a
dilutive effect on its existing shareholders.
- The company is exposed to credit risk and the risk of loss
resulting from the nonpayment and/or nonperformance by the
company's customers and counterparties.
- The backlogs at the company's construction materials and
contracting and construction services businesses are subject to
delay or cancellation and may not be realized.
- The company's operations are subject to environmental laws and
regulations that may increase costs of operations, impact or limit
business plans, or expose the company to environmental
liabilities.
- Initiatives to reduce greenhouse gas emissions could adversely
impact the company's operations.
- The company is subject to government regulations that may delay
and/or have a negative impact on its business and its results of
operations and cash flows. Statutory and regulatory requirements
also may limit another party's ability to acquire the company or
impose conditions on an acquisition of or by the company.
- The company's electric and natural gas transmission and
distribution operations involve risks that may result in accidents.
These events and pipeline safety regulation costs could adversely
affect the company's business and its results of operations and
cash flows.
- Weather conditions can adversely affect the company's
operations, revenues and cash flows.
- Competition exists in all of the company's businesses.
- The company could be subject to limitations on its ability to
pay dividends.
- Costs related to obligations under multiemployer pension plans
could have a material negative effect on the company's results of
operations and cash flows.
- The company's operations may be negatively impacted by cyber
attacks or acts of terrorism.
- The company may be subject to potential material liabilities
relating to the past sale of assets or businesses, primarily
arising from events prior to sale.
- Other factors that could cause actual results or outcomes for
the company to differ materially from those discussed in
forward-looking statements include:
- Acquisition, disposal and impairments of assets or
facilities.
- Changes in operation, performance and construction of plant
facilities or other assets.
- Changes in present or prospective generation.
- The ability to obtain adequate and timely cost recovery for the
company's regulated operations through regulatory proceedings.
- The availability of economic expansion or development
opportunities.
- Population growth rates and demographic patterns.
- Market demand for, available supplies of, and/or costs of,
energy- and construction-related products and services.
- The cyclical nature of large construction projects at certain
operations.
- Changes in tax rates or policies.
- Unanticipated project delays or changes in project costs,
including related energy costs.
- Unanticipated changes in operating expenses or capital
expenditures.
- Labor negotiations or disputes.
- Inability of the contract counterparties to meet their
contractual obligations.
- Changes in accounting principles and/or the application of such
principles to the company.
- Changes in technology.
- Changes in legal or regulatory proceedings.
- The ability to effectively integrate the operations and the
internal controls of acquired companies.
- The ability to attract and retain skilled labor and key
personnel.
- Increases in employee and retiree benefit costs and funding
requirements.
For a further discussion of these risk factors and cautionary
statements, refer to Item 1A – Risk Factors in the company's most
recent Form 10-K and Form 10-Q.
MDU Resources
Group, Inc.
|
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
|
December 31,
|
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(In millions, except
per share amounts)
|
|
(Unaudited)
|
Operating
revenues
|
$
|
1,016.1
|
|
$
|
1,016.8
|
|
$
|
4,128.8
|
|
$
|
4,014.0
|
|
Operating
expenses:
|
|
|
|
|
Fuel and purchased
power
|
20.8
|
|
22.5
|
|
75.5
|
|
86.2
|
|
Purchased natural gas
sold
|
140.0
|
|
144.8
|
|
382.8
|
|
450.1
|
|
Operation and
maintenance
|
655.8
|
|
678.6
|
|
2,893.3
|
|
2,805.2
|
|
Depreciation,
depletion and amortization
|
53.1
|
|
57.1
|
|
216.3
|
|
211.8
|
|
Taxes, other than
income
|
34.9
|
|
31.9
|
|
151.8
|
|
140.9
|
|
|
904.6
|
|
934.9
|
|
3,719.7
|
|
3,694.2
|
|
Operating
income
|
111.5
|
|
81.9
|
|
409.1
|
|
319.8
|
|
Other
income
|
1.3
|
|
12.8
|
|
5.0
|
|
18.4
|
|
Interest
expense
|
20.5
|
|
22.3
|
|
87.9
|
|
91.2
|
|
Income before
income taxes
|
92.3
|
|
72.4
|
|
326.2
|
|
247.0
|
|
Income
taxes
|
25.8
|
|
16.5
|
|
93.1
|
|
70.6
|
|
Income from
continuing operations
|
66.5
|
|
55.9
|
|
233.1
|
|
176.4
|
|
Loss from
discontinued operations, net of tax
|
(.8)
|
|
(17.5)
|
|
(300.4)
|
|
(834.1)
|
|
Net income
(loss)
|
65.7
|
|
38.4
|
|
(67.3)
|
|
(657.7)
|
|
Loss from
discontinued operations attributable to noncontrolling
interest
|
—
|
|
(14.2)
|
|
(131.7)
|
|
(35.3)
|
|
Dividends declared
on preferred stocks
|
.2
|
|
.2
|
|
.7
|
|
.7
|
|
Earnings (loss) on
common stock
|
$
|
65.5
|
|
$
|
52.4
|
|
$
|
63.7
|
|
$
|
(623.1)
|
|
|
|
|
|
|
Earnings (loss)
per common share – basic:
|
|
|
|
|
Earnings before
discontinued operations
|
$
|
.34
|
|
$
|
.29
|
|
$
|
1.19
|
|
$
|
.90
|
|
Discontinued
operations attributable to the company, net of tax
|
—
|
|
(.02)
|
|
(.86)
|
|
(4.10)
|
|
Earnings (loss)
per common share – basic
|
$
|
.34
|
|
$
|
.27
|
|
$
|
.33
|
|
$
|
(3.20)
|
|
Earnings (loss)
per common share – diluted:
|
|
|
|
|
Earnings before
discontinued operations
|
$
|
.33
|
|
$
|
.29
|
|
$
|
1.19
|
|
$
|
.90
|
|
Discontinued
operations attributable to the company, net of tax
|
—
|
|
(.02)
|
|
(.86)
|
|
(4.10)
|
|
Earnings (loss)
per common share – diluted
|
$
|
.33
|
|
$
|
.27
|
|
$
|
.33
|
|
$
|
(3.20)
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
.1925
|
|
$
|
.1875
|
|
$
|
.7550
|
|
$
|
.7350
|
|
Weighted average
common shares outstanding – basic
|
195.3
|
|
195.3
|
|
195.3
|
|
194.9
|
|
Weighted average
common shares outstanding – diluted
|
195.9
|
|
195.3
|
|
195.6
|
|
195.0
|
|
|
December 31,
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
Book value per common
share
|
$
|
11.78
|
|
|
$
|
12.83
|
|
|
Market price per
common share
|
$
|
28.77
|
|
|
$
|
18.32
|
|
|
Dividend yield
(indicated annual rate)
|
2.7%
|
|
|
4.1%
|
|
|
Price/earnings from
continuing operations ratio (12 months ended)
|
24.2x
|
|
|
20.4x
|
|
|
Market value as a
percent of book value
|
244.2%
|
|
|
142.8%
|
|
|
Net operating cash
flow (12 months ended)*
|
$
|
462
|
|
|
$
|
662
|
|
|
Total
assets*
|
$
|
6,284
|
|
|
$
|
6,565
|
|
|
Total
equity*
|
$
|
2,316
|
|
|
$
|
2,521
|
|
|
Total
debt*
|
$
|
1,790
|
|
|
$
|
1,796
|
|
|
Capitalization
ratios:
|
|
|
|
|
Total
equity
|
56.4%
|
|
|
58.4%
|
**
|
|
Total debt
|
43.6
|
|
|
41.6
|
**
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
*
|
In
millions
|
**
|
Includes
noncontrolling interest
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mdu-resources-reports-2016-earnings-initiates-guidance-for-2017-300400767.html
SOURCE MDU Resources Group, Inc.