Skip to main content DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. Investor Presentation | Shale Experts
Loading...
Pm

DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc.

MDU Resources Group Inc. · Sep 10, 2013 · 43 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 1
    MDU D.A. Davidson Engineering & Construction Conference September 2013 RESOURCES David L. Goodin Group, Inc. President & Chief Executive Officer 1
  2. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 2
    Diversified Natural Resources Company Earnings Contribution Utilities Pipeline & Energy Services Regulated 33% Construction Exploration 32% & Production 35% Note: TTM at 6/30/2013 on adjusted basis. Building A Strong…
  3. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 3
    Our Vision With integrity, create superior shareholder value by expanding upon our expertise to be the supplier of choice in all of our markets while being a safe and great place to work. RESOURCES Building A Strong America…
  4. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 4
    Shareholder Returns Total Annualized Shareholder Returns MDU YeartoDate YTD 34% 34% 1 Year 29% 20% 22% 10 Year 10% 17% 20 Year 12% MDU S&P 500 S&P 400 Peer Avg. Note: At July 31, 2013 RESOURCES Building A Strong…
  5. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 5
    Execution Leads to Growth Projecting 6% annual rate base growth at Utility next 5 years Approx. 400 million additional rate base Considers organic growth opportunities only Enhancing midstream presence at the Pipeline Construction…
  6. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 6
    Vertically Integrated Advantage Ability to leverage our expertise across business units Planned diesel topping plant in Bakken region expected to engage all business segments Strong balance sheet Improved financing options Scale…
  7. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 7
    Construction Materials & Services Materials Top 10 U.S. producer 5th Sand and gravel 9th Aggregate 10th Ready-mixed concrete Increasingly valuable aggregate reserves totaling 1.1 billion tons in strategic locations Services…
  8. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 8
    Operational Capabilities Materials Services Products Inside Aggregate, asphalt, ready-mix Commercial concrete, liquid asphalt Mechanical Cement sales Fire suppression Prestress/precast concrete Outside Building materials Power…
  9. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 9
    Building Momentum Construction Earnings Combined Backlog (Millions) (Millions) 1,177 140 1,200 121 120 1,100 980 100 1,000 80 82 80 73 71 900 60 48 48 800 40 700 20 600 500 0 2007 2008 2009 2010 2011 2012 TTM 6/30/2012…
  10. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 10
    Congress Passes Transportation Bill MAP-21 Transportation Bill Multi-year bill provides funding and stability to transportation system Funds the surface transportation programs at about current FY 2012 levels and will provide approx.…
  11. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 11
    Growing Demand Strength in North Dakota - Combined backlog of approx. 165 million at June 30, compared to 86 million a year ago - Greenfielding materials locations in key growth markets within region - Services expertise in…
  12. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 12
    Outlook Strong national indicators for business Public work expanding supported by longer-term transportation funding/assistance Strengthening markets in key areas Improving backlog Expanded operations in North Dakota Anticipating…
  13. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 13
    Regulated Businesses Electric & Natural Gas Utilities Distributes natural gas and electricity to 1 million customers Generates and transmits electricity Pipeline & Energy Services Provides natural gas transportation, underground…
  14. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 14
    Electric & Natural Gas Utilities Electric WA 135,000 customers 3,100 miles of transmission lines MT ND MN 4,700 miles of distribution lines OR ID SD Generation: Owned: WY - 392 MW Coal Fired 56% - 98 MW Gas Turbines 14% -…
  15. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 15
    Rate Base & Earnings Growth Electric & Natural Gas Utilities Tripled rate base and Projecting 6% CAGR in earnings since 2006 rate base next 5 years 1,400 80 1,000 1,200 800 1,000 60 800 600 40 600 400 400 20 200…
  16. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 16
    Substantial Growth Opportunities Electric & Natural Gas Utilities Approx. 75 million capital expenditures targeted for Bakken area in 2013 building infrastructure to accommodate electric and gas load growth 9% electric and 7%…
  17. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 17
    Outlook Plan to invest approx. 1 billion during next 5 years Expect to grow rate base by approx. 6% compounded annually over next 5 years Large growth projects Rate cases Potential projects for accommodating load growth in…
  18. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 18
    Pipeline & Energy Services Regulated operations 3,800 miles of pipeline Engaged in transportation, gathering, storage, and energy service related activities. Over 1 Bcf/d system capacity 13 interconnecting points 3 storage fields…
  19. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 19
    Opportunities Through Growing Production Bakken Oil Bakken Natural Gas (MBO/d) (MMcf/d) 2,750 3,900 Historical Forecast Historical Forecast 3,600 2,500 3,300 2,250 3,000 2,000 2,700 1,750 2,400 1,500 2,100 1,250 1,800…
  20. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 20
    Expanding Midstream Business Pronghorn Asset Acquisition Purchased 50% interest in oil and natural gas midstream assets in Bakken area Invested approximately 100 million in 2012 Natural gas processing plant with 35 MMcfd inlet…
  21. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 21
    Bakken Diesel Topping Plant Process Bakken crude ND diesel consumption increased 74% in past four years 20,000 barrels/day Consumption is more than 53,000 bpd, expected to increase to Diesel fuel, market locally 75,000 bpd by 2025…
  22. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 22
    Proposed Bakken Natural Gas Pipeline 400-mile 24-inch pipe would transport Bakken natural gas from western ND to western MN Connection with Viking Gas Transmission Companys pipeline system Projected cost 650 million - 700 million…
  23. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 23
    Goal to Double Invested Capital Pipeline & Energy Services Capital Expenditures Invested Capital* Actual Projected (Millions) 428 800 450 700 Goal 400 Other 600 Projects 350 500 Dakota Prairie 300 224 Refining 250 400…
  24. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 24
    Outlook Pursuing liquid based midstream opportunities Purchased 50% interest in Pronghorn oil and natural gas midstream assets in western ND Formed joint venture to build and operate Bakken diesel refinery construction underway…
  25. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 25
    Exploration & Production Significantly grow earnings and NAV Targeting oil to maximize profitability Focusing on basins in Rockies, Texas and Mid-Continent regions Expanding key existing positions and exploring emerging…
  26. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 26
    Returns Based Investing Exploration & Production Production Mix 2008 2013 Natural Gas Natural Gas 80% 46% Oil - 16% Oil - 47% NGL 7% NGL 4% E&P Rebalancing portfolio toward higher returns for oil Note: Second…
  27. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 27
    Oil Growth Oil Production by Quarter Increased oil production by 1,400 37% Increase Y/Y 36% in 2012 1,200 2Q 2013 oil production increased to 1.2 million 1,000 barrels, 37% over 2Q 2012 800 2012 Oil Reserve 1,201 1,139…
  28. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 28
    Bakken Oil Play First half 2013 oil production up 52% YOY 2012 Oil Production 200 million in capital spending planned for 2013 2.1 Million Mountrail County Current 1 rig program drilling Net Barrels Middle Bakken & Three Forks wells…
  29. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 29
    Bakken Mountrail County Exploration & Production Key development area - 16,000 net acres First three-well pad in July Potential upside with Three Forks formation and downspacing Currently 89 operated wells and interest in over…
  30. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 30
    Bakken Saskatchewan Manitoba Bakken Stark County Exploration & Production MT ND Primary target Stark County SD Three Forks formation Approx. 51,000 net acres Currently 25 gross operated wells Estimated gross EUR 200…
  31. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 31
    Bakken Richland County Exploration & Production Primary target Bakken Shale Sidney, MT and Three Forks Approx. 60,000 net acres Refining completion techniques Studying another productive horizon Saskatchewan Bakken…
  32. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 32
    Paradox WY Paradox Basin UT CO Grand County Exploration & Production Moab Cane Creek Unit Approx. 92,000 net acres, AZ San Juan County plus 20,000 acres under option Net production 2,300 BOPD in 2Q, up 44% from 1Q…
  33. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 33
    Paradox Basin Clastics Upside Stratigraphic Cross Section NW SE Ismay Salt 1 Clastic 1 Clastic 2 Clastic 4 Clastic 5 Clastic 7 Clastic 8 Clastic 9 Clastic 10 Clastic 12 Clastic 14 Clastic 18 Cane Crk. Base Salt…
  34. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 34
    South Texas Exploration & Production Hold approx. 9,000 net acres Multi-zone potential (stacked pays) Liquids rich gas Plan to invest approx. 35 million in 2013 Estimated gross EUR 250 400 MBOE per well E&P Building A…
  35. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 35
    2013 Outlook Exploration & Production Hedged to Support Oil Growth 2013 Returns Based Investment Philosophy Accelerating oil growth Oil 25% to 35% increase in oil production Amount hedged (BOPD) Led by growth in Bakken & Paradox July…
  36. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 36
    MDU Doran N. Schwartz RESOURCES Vice President & Chief Financial Officer Group, Inc. 37
  37. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 37
    YTD June 30 Consolidated Results Adjusted Earnings Adjusted EPS (millions) 107.3 0.57 70.8 0.37 2012 2013 2012 2013 Reconciliation 2012 2013 GAAP earnings 89.6 102.7 Discontinued operations (5.0) .2 Unrealized commodity…
  38. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 38
    Capital Expenditures Growth 3.9B 3.1B Increase Cap Ex Construction E&P 26% Regulated next 5 years 20082012 20132017 Note: Excludes proposed 400-mile pipeline and unidentified acquisitions. RESOURCES Building A Strong…
  39. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 39
    Strong Financial Position 2012 60% Equity 4,500 4,000 39% 37% 36% 34% 40% 3,500 3,000 Debt/Equity (Millions) 2,500 2,000 1,500 1,000 61% 64% 66% 60% 63% 500 0 12/31/2008 12/31/2009 12/31/2010 12/31/2011…
  40. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 40
    Credit & Liquidity At June 30, 2013 (Millions) Capacity Outstanding Available Commercial Paper Programs 625 473 152 40% Revolving Credit Agreements 115 57 56 * Construction Total Exploration 740 530 208 24% & Production…
  41. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 41
    Dividend Growth 75 0.69 Years 75 consecutive years of quarterly dividend payments Dividend increased 0.45 November 2012, marking 22 consecutive years of increases Committed to paying a competitive dividend 2003 2004 2005 2006…
  42. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 42
    Outlook 2013 off to a great start Increased and narrowed our EPS guidance Utility record 280 million capital program in 2013 driven by customer and load growth particularly in North Dakota Pipeline expanding its liquids-based…
  43. DAVIDSON ENGINEERING AND CONSTRUCTION CONFERENCE – MDU Resources Group Inc. – slide 43
    MDU Building A Strong America RESOURCES Group, Inc. 44

From the store

Browse maps, data & reports in the Shale Experts store