Investor Relations December 2012 Regulated MDU Resources Group, Inc. E&P Building A Strong America Construction 1
Diversified Natural Resources Company Diversified Asset-Based Solid operators Fiscally responsible Strong balance sheet Access to capital Exceptional workforce M D U 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. Building A Strong America M D U 4
Strength Through Diversification Earnings Contribution TTM at 9/30/12 Utilities Pipeline & Energy Services Regulated 36% Construction 33% Exploration & Production 31% Building A Strong America M D U 5
Superior Shareholder Returns Total Annualized Shareholder Returns 10Year 1 Year 18% 11% 11% 3 Year 5% 8% 10 Year 11% 20 Year 12% 0% 5% 10% 15% 20% MDU S&P 500 S&P 400 Note: At September 30, 2012 M D U 6
Roadmap to Success Regulated E&P Electric & Natural Gas Utilities Strong portfolio of properties Good customer growth, particularly in Oil economics are good Bakken area Projecting substantially higher oil Specifically identified…
Regulated Businesses Electric & Natural Gas Utilities Distributes natural gas and electricity to 976,000 customers Generates and transmits electricity Pipeline & Energy Services Engaged in natural gas transportation, underground…
Electric & Natural Gas Utilities Electric WA 130,000 customers MT ND 3,000 miles of transmission lines OR ID MN 4,600 miles of distribution lines SD Generation: WY Owned: - 392 MW Coal Fired 56% - 98 MW Gas Turbines 14% - 54…
Rate Base & Earnings Growth Electric & Natural Gas Utilities Rate Base Earnings (Millions) 1,200 80 1,000 60 800 600 40 400 20 200 0 0 2006 2007 2008 2009 2010 2011 Rate base growth has driven earnings growth…
Growing Rate Base Electric & Natural Gas Utilities 6% CAGR - Projected Rate Base 1,000 800 Approval of advanced determination of prudence granted on two substantial 600 projects 85 million 88-MW gas turbine in Mandan 400 125…
Bakken Opportunities Electric & Natural Gas Utilities Approx. 75 million capital expenditures targeted for Bakken area in 2012 building infrastructure to accommodate electric and gas load growth 8% electric and 6% gas customer growth…
Outlook Electric & Natural Gas Utilities Rate base growth Plan to invest approx. 965 million during next 5 years Generating approx. 400 million additional rate base Two major projects planned 85 million 88-MW simple cycle natural…
Pipeline & Energy Services Regulated operations Engaged in gathering, storage, transportation, 3,700 miles of pipeline and energy service related activities. 1 Bcf/d system capacity 13 interconnecting points WA 3 storage fields with…
North Dakota Daily Production (MMcf/d) As of August 31, 2012 (MBopd) 4,000 4,000 3,500 Historical Forecast 3,500 Pipeline & Energy Services 3,000 3,000 2,500 2,500 Current Prod 2,000 Oil 701 MBopd 2,000 Gas 762 MMcf/d 1,500…
Expanding Midstream Business Pronghorn Asset Acquisition Purchased 50% interest in oil and natural gas midstream assets near Belfield, ND in Pipeline & Energy Services Bakken area Expect to invest approximately 100 million in…
Bakken Diesel Plant Opportunity Pipeline & Energy Services Studying feasibility of joint venture to Process underway build and operate topping plant Exercised option to purchase land Experienced partner Recently filed for air quality…
Outlook Pipeline & Energy Services Pursuing liquid based midstream opportunities Purchased 50% interest in Pronghorn oil and natural gas midstream assets in western ND Exercised option to purchase land for proposed Bakken diesel…
Exploration & Production Headquartered in Denver, CO Two producing regions: Rocky Mountain Region 76% of proved reserves* Mid-Continent/Gulf States 24% of proved reserves* Q3 2012 production 26 MBOE/d 48% Oil 52% Natural Gas…
Growth Strategy Exploration & Production Significantly grow earnings and NAV Plan to invest approx. 525 million in 2012 Projecting 25-30% oil production increase Balancing commodity mix to maximize profitability Solid set of assets…
Bakken Acreage Exploration & Production 265 million in spending planned in 2012 An expansion of 165 million compared to last year More operated wells Higher working interest Production Bakken Approx. 127,000 net acres Mountrail…
Bakken Mountrail County Exploration & Production Key development area - 16,000 net acres Strong well results Approx. 40 potential gross well sites Excluding Three Forks potential Currently 64 operated wells and interest in over…
Bakken Stark County Key appraisal area Primary target Exploration & Production Three Forks formation Approx. 51,000 net acres Currently 14 gross operated wells Approx. 40 potential gross well sites Saskatchewan Manitoba…
Bakken Richland County Exploration & Production Key growth area Primary target Bakken Shale Sidney, MT and Three Forks Approx. 60,000 net acres Approx. 100 potential gross well sites identified Estimated gross EUR 250 500 MBO…
Paradox Basin Paradox WY UT CO Grand County Hold approx. 75,000 Cane Creek Unit net acres San Juan County Exploration & Production Evaluating both AZ vertical and horizontal development scenarios Plan to drill 6…
South Texas Exploration & Production Hold approx. 16,000 net acres Multi-zone potential (stacked pays) 25 60 future drilling locations Plan to drill 10-12 wells in 2012 Estimated gross EUR 250 400 MBOE per well M D U E&P…
Central Texas Play Exploration & Production Hold approx. 22,000 net acres in active play fairway Upside from stacked pay potential, horizontal wells Drilled 4 wells in 2012, evaluating results Approx. 50 - 100 potential gross…
Outlook Exploration & Production Returns Based Investment Philosophy Hedged to Support Oil Growth 25% to 30% increase in oil production over 2011 levels 2012 2013 Led by growth in Bakken Oil Oil 25% to 30% decrease in natural gas…
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…
Building Momentum Materials & Services Construction Earnings - TTM Positioned to grow (Millions) Peak earnings 120.8 million in 2007 70.3 Significantly lower cost structure now Margin and volume expansion 45.2 68% earnings…
Materials Vertically Integrated MT ND Asphalt oil Asphalt production Aggregate Construction based Cement sales Ready-mix/Prestress/ Precast M D U Construction Building A Strong America 31
Congress Passes Transportation Bill Materials & Services 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…
Services Specialized & Highly Skilled Inside - Large, complex new construction projects - Maintenance and service work - Expertise in solar Outside - Large demand for upgrading and constructing transmission and distribution…
Growing Bakken Demand Materials & Services Expanding workforce Entry into key growth markets in the region Strong backlog Private and public work Population growth Providing diversified mix of products and services: Road…
Outlook Materials & Services Strong national indicators for business - Housing starts up 15% in September compared to August - Construction spending 9% higher for first eight months of year compared to same period last year Two-year…
Consolidated Results Third Quarter Consolidated Results (Millions) 71.1* 63.8 Diversified earnings mix results in 12% EPS increase 2011 2012 EPS 0.34 0.38* * Excludes a noncash charge of 100.9 million. M D U Building A…
Capital Expenditures Growth 4.0B 2.7B Increase Cap Ex 48% next 5 years 20072011 20122016 Regulated E&P Construction Note: Excludes unidentified acquisitions. Building A Strong America M D U 37
Credit & Liquidity At September 30, 2012 (Millions) Capacity Outstanding Available Commercial Paper Programs 600 401 179 * 40% Revolving Credit Agreements 115 11 102 * Construction Total Exploration 715 412 281 24% &…
Dividend Growth 75 Years 75 consecutive years of 0.69 quarterly dividend payments Dividend increased November 2012, marking 22 consecutive years of 0.45 increases Committed to paying a competitive dividend 2003 2004 2005…
Roadmap to Success Competitive dividend In excellent position to take advantage of growth opportunities Approx. 180 million in available liquidity in addition to 74 million in cash on hand at September 30 Significant investment in…
Regulated MDU Resources Group, Inc. E&P Building A Strong America Construction 42
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