Skip to main content AGA FINANCIAL FORUM – MDU Resources Group Inc. Investor Presentation | Shale Experts
Loading...
Pm

AGA FINANCIAL FORUM – MDU Resources Group Inc.

MDU Resources Group Inc. · May 10, 2013 · 44 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. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 1
    MDU AGA Financial Forum May 2013 RESOURCES David L. Goodin Group, Inc. President & Chief Executive Officer 1
  2. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 2
    Diversified Natural Resources Company Earnings Contribution 2012 Utilities Pipeline & Energy Services Regulated 34% Construction Exploration 33% & Production 33% Note: Based on 2012 adjusted earnings which excludes…
  3. AGA FINANCIAL FORUM – 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. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 4
    Shareholder Returns Total Annualized Shareholder Returns MDU YeartoDate YTD 18% 18% 15% 15% 1 Year 13% 11% 10 Year 10% 20 Year 11% MDU S&P 500 S&P 400 Peer Avg. Note: At March 31, 2013 RESOURCES Building A Strong…
  5. AGA FINANCIAL FORUM – 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 Recently broke…
  6. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 6
    Vertically Integrated Advantage Ability to leverage our expertise across business units Planned diesel topping plant in Bakken region has potential to engage all business segments Strong balance sheet Improved financing options…
  7. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 7
    Exploration & Production Significantly grow earnings and NAV Targeting oil to maximize profitability Focusing on best basins in Rockies, Texas and Mid-Continent regions Expanding key existing positions and exploring emerging…
  8. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 8
    Returns Based Investing Exploration & Production Production Mix 2007 2012 Natural Gas Natural Gas 81% 48% Oil/Liquids Oil/Liquids 19% 52% E&P Rebalancing portfolio toward higher returns for oil Note: Fourth quarter…
  9. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 9
    Oil Growth Oil Production by Quarter 46% Increase Increased oil production by 1,200 Y/Y 36% in 2012 1,000 1Q 2013 oil production increased to 1.1 million 800 barrels, 46% over 1Q 2012 1,139 1,118 2012 Oil Reserve…
  10. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 10
    Bakken Oil Play 1Q 2013 oil production up 63% over 1Q 2012 2012 Oil Production 200 million in capital spending planned for 2013 2.1 Million Mountrail County Current 2 rig program drilling Net Barrels Middle Bakken & Three Forks wells…
  11. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 11
    Bakken Mountrail County Exploration & Production Key development area - 16,000 net acres Strong well results Potential upside with Three Forks formation and downspacing Currently 85 operated wells and interest in over 200…
  12. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 12
    Bakken Saskatchewan Manitoba Bakken Stark County Exploration & Production MT ND Primary target Stark County SD Three Forks formation Approx. 51,000 net acres Currently 24 gross operated wells Estimated gross EUR 200…
  13. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 13
    Bakken Richland County Exploration & Production Primary target Bakken Shale Sidney, MT and Three Forks Approx. 60,000 net acres Estimated gross EUR 250 500 MBO per well Saskatchewan Bakken Richland County MT…
  14. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 14
    Paradox WY Paradox Basin UT CO Grand County Exploration & Production Cane Creek Unit Approx. 92,000 net acres, AZ San Juan County plus 20,000 acres under option Believe play could be substantial for company Recently…
  15. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 15
    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…
  16. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 16
    South Texas Exploration & Production Hold approx. 9,000 net acres Multi-zone potential (stacked pays) Liquids rich gas Plan to invest approx. 40 million in 2013 Estimated gross EUR 250 400 MBOE per well E&P Building A…
  17. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 17
    Operational Improvements Exploration & Production Well Cost Efficiency Gains Bakken (1280 Acre Lateral With 30 Stages) 1Q 2012 - 8.5 - 9.5 million 1Q 2013 - 7.0 - 7.5 million Paradox (1st Well On Pad) 1Q 2012 - 8.0+ million 1Q…
  18. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 18
    2013 Outlook Exploration & Production Hedged to Support Oil Growth Returns Based Investment Philosophy 2013 Accelerating oil growth Oil 25% to 30% increase in oil production Led by growth in Bakken & Paradox Amount hedged (BOPD)…
  19. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 19
    Regulated Businesses Electric & Natural Gas Utilities Distributes natural gas and electricity to 997,000 customers Generates and transmits electricity Pipeline & Energy Services Provides natural gas transportation, underground…
  20. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 20
    Electric & Natural Gas Utilities Electric WA 132,000 customers 3,100 miles of transmission lines MT ND MN 4,700 miles of distribution lines OR ID Generation: SD Owned: W Y - 392 MW Coal Fired 56% - 98 MW Gas Turbines 14% -…
  21. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 21
    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…
  22. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 22
    Substantial Growth Opportunities Approx. 75 million capital expenditures targeted for Bakken area in 2013 building infrastructure to accommodate electric and gas load growth 9% electric and 7% natural gas customer growth in Bakken in…
  23. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 23
    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…
  24. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 24
    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…
  25. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 25
    Opportunities Through Growing Production Bakken Oil Bakken Natural Gas (MBopd) (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…
  26. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 26
    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…
  27. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 27
    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…
  28. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 28
    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…
  29. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 29
    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…
  30. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 30
    Construction Materials & Services Materials Top 10 U.S. producer 5th Sand and gravel 9th Aggregate 9th Ready-mixed concrete Increasingly valuable aggregate reserves totaling 1.1 billion tons in strategic locations Services…
  31. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 31
    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…
  32. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 32
    Building Momentum Construction Earnings Combined Backlog (Millions) (Millions) 140 1,054 1,100 120 1,000 100 865 900 80 800 60 40 700 20 600 0 500 2007 2008 2009 2010 2011 2012 3/31/12 3/31/13 Margin and volume expansion…
  33. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 33
    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.…
  34. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 34
    Growing Demand Strength in North Dakota - Combined backlog of approx. 67 million at March 31 - Greenfielding materials locations in key growth markets within region - Services expertise in transmission and distribution, substation…
  35. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 35
    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…
  36. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 36
    MDU Doran N. Schwartz RESOURCES Vice President & Chief Financial Officer Group, Inc. 37
  37. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 37
    Consolidated Results First Quarter Consolidated Results (Millions) 56.3 58% Earnings 35.6 Increase 2012 2013 EPS 0.19 0.30 Building A Strong America 38
  38. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 38
    Earnings per Share Guidance 2013 EPS by Quarter: 2nd Quarter: approx. 20% 3rd Quarter: approx. 30% 1.30 4th Quarter: approx. 25% to Increased guidance from 1.20 - 1.35 to 1.30 to 1.40 effective April 30 1.40 Note: As of April 30,…
  39. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 39
    Capital Expenditures Growth 3.9B 3.1B Increase Cap Ex Construction E&P 26% Regulated next 5 years 20082012 20132017 Note: Excludes unidentified acquisitions. RESOURCES Building A Strong America 40
  40. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 40
    Strong Financial Position 2012 60% Equity 4,500 4,000 3,500 3,000 Debt/Equity (Millions) 2,500 2,000 1,500 1,000 500 0 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 Equity Debt RESOURCES Building A…
  41. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 41
    Credit & Liquidity At March 31, 2013 (Millions) Capacity Outstanding Available Commercial Paper Programs 625 301 324 40% Revolving Credit Agreements 115 38 77 Construction Total Exploration 740 339 401 24% & Production 36%…
  42. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 42
    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…
  43. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 43
    Outlook 2013 off to a great start Increased and narrowed our EPS guidance Utility record 252 million capital program in 2013 driven by customer and load growth particularly in North Dakota Pipeline reinventing itself with expansion…
  44. AGA FINANCIAL FORUM – MDU Resources Group Inc. – slide 44
    MDU Building A Strong America RESOURCES Group, Inc. 45

From the store

Browse maps, data & reports in the Shale Experts store