BISMARCK, N.D., Nov. 23, 2021 /PRNewswire/ -- MDU Resources
Group, Inc. (NYSE: MDU) today announced that it plans to make
capital investments totaling $3.0
billion for the five-year period from 2022-26.
"Our capital investment plan supports the significant
opportunities we see for organic growth at all our businesses,
particularly a focus on infrastructure development and grid
reliability and resiliency," said David L.
Goodin, president and CEO of MDU Resources.
Acquisitions would be incremental to the company's 2022-26
outlined capital investment plan. The company will provide updates
as it identifies opportunities outside the plan.
Capital
Expenditures
|
|
Forecast
|
Actual
+ 2021
Forecast
|
Forecast
|
|
2021
|
2022
|
2023
|
2024
|
2017-2021
|
2022-2026
|
|
(in
millions)
|
Regulated energy
delivery
|
|
|
|
|
|
|
Electric
|
$
|
93
|
|
$
|
165
|
|
$
|
116
|
|
$
|
85
|
|
$
|
603
|
|
$
|
551
|
|
Natural gas
distribution
|
179
|
|
248
|
|
232
|
|
207
|
|
931
|
|
1,033
|
|
Pipeline
|
246
|
|
72
|
|
159
|
|
106
|
|
481
|
|
413
|
|
|
518
|
|
485
|
|
507
|
|
398
|
|
2,015
|
|
1,997
|
|
Construction
materials and services
|
|
|
|
|
|
|
Construction materials
and contracting
|
428
|
|
189
|
|
166
|
|
172
|
|
1,134
|
|
807
|
|
Construction
services
|
46
|
|
47
|
|
42
|
|
43
|
|
234
|
|
221
|
|
|
474
|
|
236
|
|
208
|
|
215
|
|
1,368
|
|
1,028
|
|
Total*
|
$
|
992
|
|
$
|
721
|
|
$
|
715
|
|
$
|
613
|
|
$
|
3,383
|
|
$
|
3,025
|
|
* Excludes "Other"
category, as well as assumed net proceeds from the sale or
disposition of property.
|
MDU Resources continues to make substantial investments in its
utility operations. The outlined capital investment plan includes
meeting service needs related to customer growth as well as
replacing, expanding and modernizing infrastructure within the
electric and natural gas distribution systems. These infrastructure
investments will ensure the reliability and safety of the company's
systems and support continued customer growth and subsequent demand
increases. The plan includes construction of the previously
announced Heskett Station Unit IV, an 88-megawatt simple-cycle,
natural gas-fired combustion turbine near Mandan, North Dakota, to replace the company's
Heskett Station Units I and II, which are coal fired electric
generation facilities being retired in early 2022. Utility
operations cross eight states where customer growth is expected to
continue at a rate of 1-2% annually. The company anticipates its
electric and natural gas utilities will grow rate base by
approximately 5% annually over the next five years on a compound
basis.
Capital investments at the pipeline business reflect organic
growth projects and include the previously announced North Bakken
Expansion project, which will be placed in service in early 2022,
and the Wahpeton Expansion project planned for 2024. These
projects, as designed, will bring pipeline system capacity to over
2.4 billion cubic feet of natural gas per day and will help reduce
natural gas flaring in the Bakken while allowing producers to move
more gas to market. This business is focused on growth through
additional system expansions and potential industrial-related
projects.
At the company's construction materials and services businesses,
capital expenditures will be focused primarily on organic expansion
opportunities and normal equipment and plant replacements and
upgrades. Included in the forecast is the construction of a
prestress concrete plant in Spokane,
Washington, continued development of the company's
Honey Creek Quarry in Texas and completion of the company's training
facility in Oregon. The company
expects public sector workload growth from infrastructure spending
initiatives. The American Rescue Plan Act, approved in early 2021,
provides $1.9 trillion in COVID-19
relief funding for states and local governments, with investments
to include transportation enhancements, technology-based facility
buildout and telecommunications infrastructure. Additionally, the
company expects the bipartisan Infrastructure Investment and Jobs
Act will provide significant opportunities for both construction
materials and services companies through much-needed investment in
America's infrastructure. The construction businesses also are
focused on growth through mergers and acquisitions, with any future
acquisitions being incremental to the outlined capital
forecast.
The capital program is subject to continued review and
modification by the company. Actual expenditures may vary from the
estimates due to changes in load growth and regulatory decisions,
future acquisitions, and other factors.
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, underlying expectations, 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 subsequent filings with the SEC.
About MDU Resources
MDU Resources Group, Inc., a
Fortune 500 company and a member of the S&P MidCap 400 and the
S&P High-Yield Dividend Aristocrats indices, 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,
visit www.mdu.com or contact the Investor Relations Department
at investor@mduresources.com.
Financial Contact: Jason
Vollmer, vice president and chief financial officer,
701-530-1755
Media Contact: Laura Lueder,
manager of communications and public relations, 701-530-1095
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SOURCE MDU Resources Group, Inc.