BISMARCK, N.D., Nov. 21,
2023 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:
MDU) announced today that it plans to make capital investments
totaling $2.8 billion from 2024
through 2028.
"Our capital investment plans over the next five years are
heavily focused on our regulated energy delivery businesses, with a
15% increase in planned spending as compared to the previous five
years," said David L. Goodin,
president and CEO of MDU Resources. "We plan to expand our energy
delivery systems to meet growing demand while upgrading existing
infrastructure to ensure continued reliable and safe service to our
customers. As we expect to complete the spinoff of our construction
services business late next year, our planned capital investments
for that business are limited to 2024."
On Nov. 2, MDU Resources announced
it intends to pursue a tax-free spinoff of its construction
services subsidiary, MDU Construction Services Group. MDU Resources
intends to become a pure-play regulated energy delivery business
consisting of electric and natural gas utilities and a natural gas
pipeline business.
Capital
Expenditures
|
|
Forecast
|
Actual + 2023
Forecast
|
Forecast
|
|
2023
|
2024
|
2025
|
2026
|
2019-2023
|
2024-2028
|
(in
millions)
|
Regulated energy
delivery
|
|
|
|
|
|
|
Electric
|
$102
|
$113
|
$154
|
$199
|
$532
|
$880
|
Natural
gas distribution
|
256
|
337
|
301
|
288
|
1,066
|
1,423
|
Pipeline
|
134
|
107
|
77
|
42
|
564
|
405
|
|
492
|
557
|
532
|
529
|
2,162
|
2,708
|
Construction
services*
|
38
|
52
|
0
|
0
|
248
|
52
|
Total**
|
$530
|
$609
|
$532
|
$529
|
$2,410
|
$2,760
|
*Assumes proposed
tax-free spinoff completed in late 2024
**Excludes "Other" category, as well as assumed net proceeds from
the sale or disposition of property
|
MDU Resources plans to increase investments in its electric and
natural gas utilities 44% over the next five years as compared to
2019-23. Planned investments include:
- Construction of electric transmission lines and substations, as
well as natural gas delivery infrastructure, to serve a customer
base that is expected to continue growing at 1%-2% annually over
the next five years.
- Construction of a Midwest Independent System Operator-approved
345-kilovolt transmission line project from Jamestown, North Dakota, to Ellendale, North Dakota, in partnership with
Otter Tail Power Company.
- Replacing and modernizing certain existing electric and natural
gas utility infrastructure to ensure continued safe and reliable
service to customers.
Rate base for the utilities is expected to grow 6%-7% on a
compounded annual basis over the next five years.
MDU Resources' planned capital investments at the pipeline
business will focus on system growth to expand natural gas
transmission capacity. A number of projects are included in the
planned investments, including the Wahpeton Expansion project in
North Dakota that is expected to
be constructed in 2024.
In 2024, MDU Resources plans to invest $52 million in MDU Construction Services Group,
primarily on normal replacements and upgrades of the equipment that
is used in the transmission and distribution, and electrical and
mechanical services the company performs.
MDU Resources continually reviews its capital program and
modifies it as needed. Actual expenditures may differ from
estimates because of changes in load growth, regulatory decisions
or other factors. The company provides periodic updates about its
capital investments.
Acquisitions are not included in, and would be incremental to,
MDU Resources' capital investment plan.
Forward-Looking Statements
Information in this
release includes certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
The words "continue," "expect," "estimate," "forecast," "may,"
"will," "would" or the negative thereof, and similar expressions,
are intended to identify such forward-looking statements. The
forward-looking statements in this release, including information
about capital expenditure forecasts; expected projects; key growth
strategies; projections; certain assumptions and strategies of MDU
Resources; the planned spinoff of MDU Construction Services Group
and the expected timing of the spinoff; statements regarding the
company's planned investments, including customer growth rates; 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, but they are subject to risks and uncertainties and are made
pursuant to the safe harbor provisions of Section 27A of the
Securities Act of 1993, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. 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, refer
to Item 1A — Risk Factors in MDU Resources' most recent Form 10-K
and Form 10-Q and subsequent filings with the SEC.
About MDU Resources
MDU Resources Group, Inc., a
member of the S&P MidCap 400 index, provides essential products
and services through its regulated energy delivery and construction
services businesses. For more information about MDU Resources,
visit www.mdu.com or contact the Investor Relations Department at
investor@mduresources.com.
Investor Contact: Brent
Miller, assistant treasurer, 701-530-1730
Media Contact: Laura Lueder, manager of communications
and public relations, 701-530-1095
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SOURCE MDU Resources Group, Inc.