MDU Resources Group, Inc.

MDU Resources Group supplies electricity and distributes natural gas through regulated utilities, alongside WBI Energy's pipeline and storage operations. Shares trade on the New York Stock Exchange under MDU. The company is a member of the S&P SmallCap 600.

Operating history

The electricity segment benefited from new rates, Badger Wind and higher sales. Third-quarter retail electricity volume rose 9.3%, including warmer weather and 18.4% growth in data-center sales. Gas distribution had a larger seasonal loss; pipeline earnings declined as costs increased and interruptible transportation and storage activity weakened.

MDU reported adjusted Q3 EPS of $0.08, compared with $0.09 a year earlier, excluding the abandoned Knott Landfill renewable-gas project and noncapitalized Bakken East advisory costs. The earnings release's net-income presentation differs slightly from the exact quarterly-report amounts used in the table.

Earlier expectations and current outlook

November's 2026 EPS outlook remains $0.93 to $1.00, the same range reaffirmed in August. The long-term annual EPS growth objective remains 6% to 8%.

The annual capital estimate increased from $529.2 million in the June report to $594.4 million. The revision includes Bakken East preliminary project costs moving into construction accounting, alongside changes to other projects. It is not a matching increase in new cash spending: $11 million of costs from earlier years were reclassified without a current cash payment.

Cash flow and financing

Lower collections of gas and carbon-compliance costs and receivables weighed on operating cash, partly offset by deferred taxes and customer-related balances. Net removal costs were another $13.1 million and dividends paid were $86.7 million. Net cash equity proceeds were $170 million; cash long-term debt issuance was $497.2 million and repayments were $577.3 million.

September 30 cash, including restricted cash, was $27.6 million. Available borrowing capacity across the group was $588.5 million. Carrying debt totaled $2,594.9 million, including $24.7 million due within one year. The company reported covenant compliance and investment-grade ratings at its debt-issuing entities.

Outstanding forward stock-sale agreements could have delivered approximately $139.6 million for 7.4 million shares if physically settled at September 30. These were potential proceeds rather than cash already received.

Investment and company changes

MDU completed its acquisition of a 49% interest in Badger Wind Farm and placed it in service in December 2025. The Everus separation was completed in October 2024, and transition services ended in March 2026.

Bakken East received board investment approval on September 30, 2026. The roughly 350-mile gas pipeline is designed for 1.4 billion cubic feet per day. Customer precedent agreements cover nearly 1.2 billion, subject to conditions. State support includes up to $50 million annually for 10 years of capacity commitments.

The latest estimated project cost is $2.8 billion to $3.1 billion, versus August's $2.7 billion to $3.2 billion. Both have a $2.95 billion midpoint. The federal application is anticipated in Q4 2026; the two phases target late 2029 and late 2030, subject to approval.

MDU expects to retain majority ownership and operational control, while evaluating debt, equity and outside partners. The quarterly report says definitive financing and partners are not secured and that a partnership could share returns and control. The eventual funding terms, ownership allocation and regulatory approvals are the key milestones to follow.