Investment plan

MDU Resources announces five-year capital investment plan

BISMARCK, ND, 23 November 2021 / PRNewswire / – MDU Resources Group, Inc. (NYSE: MDU) today announced its intention to make capital investments totaling $ 3.0 billion for the five-year period 2022-2026.

“Our capital investment plan supports the significant opportunities we see for organic growth across all of our businesses, particularly the focus on infrastructure development and network reliability and resilience,” said David L. Goodin, President and CEO of MDU Resources.

The acquisitions would be in addition to the capital investment plan described for 2022-2026 of the company. The company will provide updates as it identifies opportunities outside of the plan.

Capital expenditure


Provide

Real

+ 2021
Provide

Provide


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


1997


Building materials and services







Construction materials and subcontracting

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 the “Other” category, as well as deemed net proceeds from the sale or disposition of property.

MDU Resources continues to make substantial investments in its utility operations. The investment plan described includes the satisfaction of service needs related to customer growth as well as the replacement, expansion and modernization of the infrastructure of the electricity and natural gas distribution networks. These infrastructure investments will ensure the reliability and security of the company’s systems and support continued customer growth and subsequent increased demand. The plan includes the construction of the previously announced Heskett Station Unit IV, an 88-megawatt single-cycle natural gas-fired combustion turbine near Mandan, North Dakota, to replace Units I and II at the company’s Heskett Station, which are coal-fired power generation facilities that will be phased out in early 2022. Utility operations cross eight states where customer growth is expected continue at a rate of 1 to 2% per annum. The company expects its electric and natural gas utilities to increase rate base by approximately 5% per year over the next five years on a compound basis.

Capital investments in the pipeline business reflect organic growth plans and include the previously announced North Bakken expansion project, which will be commissioned in early 2022, and the Wahpeton expansion project slated for 2024. These projects, as designed, will bring the pipeline system capacity to more than 2.4 billion cubic feet of natural gas per day and help reduce natural gas flaring in the Bakken while allowing producers to move more. of gas to the market. This business is focused on growth through additional system expansions and potential industry related projects.

In the Company’s building materials and services business, capital spending will be primarily focused on organic expansion opportunities and normal equipment and plant replacements and upgrades. The plan includes the construction of a pre-stressed concrete plant at Spokane, Washington, the continued development of the company Honey Creek Quarry in Texas and the completion of the company’s training center in Oregon. The company expects an increase in the workload of the public sector thanks to the infrastructure spending initiatives. The American Rescue Plan Act, approved in early 2021, provides for $ 1.9 trillion in COVID-19 relief funding for states and local governments, with investments to include transportation improvements, construction of technology-based facilities and telecommunications infrastructure. In addition, the company expects the bipartisan Infrastructure Investment and Jobs Act to provide significant opportunities for building materials and service companies through much-needed investment in U.S. infrastructure. Construction activities are also focused on growth through mergers and acquisitions, with any future acquisitions in addition to the capital projections described.

The capital program is subject to ongoing review and modification by the Company. Actual expenses may differ from estimates due to changes in load growth and regulatory decisions, future acquisitions and other factors.

Forward-looking statements
The information contained in this press 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 press release, including forecasts of capital expenditures, underlying expectations and statements of the Chairman and Chief Executive Officer of MDU Resources, are expressed in good faith and are considered by the company to have a reasonable basis. However, actual results may differ materially from the projected results expressed in forward-looking statements. For a discussion of the significant factors that could cause actual results to differ materially from those expressed in forward-looking statements, see Section 1A-Risk Factors in the most recent MDU Resources 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 S&P High-Yield Dividend Aristocrats Indices, is building a strong America® by providing essential products and services through its regulated energy delivery and building materials and service companies. For more information on MDU resources, visit www.mdu.com or contact the Investor Relations Department at [email protected].

Financial contact: Jason vollmer, vice president and chief financial officer, 701-530-1755
Media contact: Laura Lueder, communications and public relations manager, 701-530-1095

SOURCE MDU Resources Group, Inc.


Source link