MDU Resources Group, Inc. Q3 FY2025 earnings call

• Pipeline segment strong performance drove Q3 results; utility retail customer growth 1.5% within targeted annual rate. - Electric segment: North Dakota PSC approved advanced determination of prudence for Badger Wind Farm acquisition (122.5 MW of 250 MW), expect completion at year-end; filed general rate case in Montana requesting $14.1M annual increase including Badger Wind Farm recovery; wildfire mitigation plans on track for filings in ND, MT, WY by year-end; 580 MW data center load under signed agreements, with online and expected online timelines; nonbinding MOU for North Plains Connector project. - Natural Gas segment: Settlement agreements in Wyoming general rate case (annual $2.1M increase, rates effective 8/1/25), Montana general rate case ($7.3M annual increase, rates effective 11/1/25), and Idaho general rate case ($13M annual increase, hearing 11/18-19/25, rates effective 1/1/26); plan to file general rate case in Oregon by end of year. - Pipeline segment: Minot expansion project in service, Line Section 32 Expansion Project surveys ongoing, targeting FERC application Q1 2026 and construction completion late 2028; Bakken East pipeline project selected by NDIC for firm capacity commitments, actively marketing; signed agreement for Minot Industrial Pipeline project early-stage development.

Electric Utility: Third quarter earnings of $21.5 million compared to $24.3 million in 2024. Higher retail sales revenues positively impacted results but were offset by higher operation and maintenance expense, primarily from higher payroll-related costs and higher contract services, along with higher depreciation from capital projects. Natural Gas utility: Seasonal loss of $18.2 million in Q3 2025 compared to $17.5 million in 2024. Increased operation and maintenance expense (higher payroll and depreciation from capital projects) drove the loss, partially offset by higher retail sales revenue from rate relief in Washington, Montana, and Wyoming. Pipeline: Record third quarter earnings of $16.8 million compared to $15.1 million in 2024. Driven by higher transportation revenue from growth projects and customer demand for short-term firm natural gas transportation contracts, offset by higher operation and maintenance expense, increased property taxes, and depreciation. Revenue contributions: Pipeline had record earnings, Electric had $21.5M, Natural Gas had a seasonal loss.

• Raised the bottom end of earnings per share guidance to a new range of $0.90 to $0.95 per share from previous $0.88 to $0.95, dependent on normal weather and operating conditions in Q4. - Anticipate long-term EPS growth rate of 6% to 8% while targeting a 60% to 70% annual dividend payout ratio.

Q: There are no questions at this time A: [Operator indicates no questions]