A STRONG INFRASTRUCTURE Regulated IS THE HEART OF E&P Construction OUR ECONOMY MDU Resources Group, Inc. Building A Strong America 1
Diversified Natural Resources Company Fortune 500 Company Diversified combination of businesses Asset-based Highly responsible fiscal Natural Gas and Oil Production management Pipeline and Energy Services Electric Utility Natural…
Balanced Portfolio A Third A Third A Third Utiliti Utilities Regulated Pipeline & Energy Services Exploration & Production Construction Construction Materials & Contracting Construction Services Note: Based on 2009…
Total Annualized Shareholder Returns At December 31, 2009 10 Year Returns 10-Year 20 year 13% 10 Year 13% 13% 11% 5 Year 8% 6% 3 Year 0% 1 Year 13% -1% MDU S&P 500 S&P 400 Peers 0% 5% 10% 15% Regulated E&P…
Proven Strategy Apply our expertise in energy and transportation infrastructure industries to increase market share,, increase profitability p y and enhance shareholder value through: ated E&P Organic growth Disciplined…
Our Success 2000 2009 Revenue 1.9 B 4.2 B ated E&P Earnings 110.3 M 260.4 M * Construcction Operating Cash Flows 207.0 M 846.7 M Regula Total Assets 2.4 B 6.0 B Annual Dividend** 39 63 Debt-to-Capitalization 46 %…
Growth Capital Allocation Opportunistic approach to growth projects Individual business segment cost of capital rates Disciplined Decision group of key executives including operating company presidents Regulated E&P…
Regulated Electric & Natural Gas Utilities Distributes natural gas and electricity to 950,000 customers, and generates and transmits electricity. Pipeline & Energy Services Engaged in natural gas transportation, underground…
Electric & Natural Gas Electric Utilities 122,000 customers 3,000 miles of transmission lines 4,600 4 600 miles of distribution lines Generation: Owned: -369 MW Coal Fired -114 MW Gas Turbines -25 MW Renewable Power Electric and…
Growth - Electric Generation Electric & Natural Gas Utilities Renewable Generation Waste Heat Recovery 7.5 MW Facility Wind Generation - Constructing 19.5 MW Cedar Hills wind generation facility southwest North Dakota - Expanding…
Projected Utility Rate Base* Electric & Natural Gas Utilities 1,155 1,197 1,200 978 1,035 1,000 751 800 (millions) 600 365 400 200 - 2006 2007 2008 2009 2010 2011 *Including construction work in progress Regulated…
2010 Outlook Electric & Natural Gas Utilities Cost containment Capitalize on employee expertise through integration Rate base growth - Electric generation build-out - Wyoming rate case increase filing pending Reliable earnings…
Pipeline & WA Energy Services MT ND Regulated operations ID SD WY - 3,700 miles of pipeline - 750 MMcf/d system capability NE - 3 storage fields with 193 Bcf working storage capacity CO Own largest storage field in North…
2009 Pipeline Growth Pipeline & Energy Services A Acquired i d assets t off Total T t l Corrosion C i S Solutions l ti iin A Augustt 2009 - Full-service cathodic protection company operating in Pacific Northwest and Rocky…
2010 Outlook Pipeline & Energy Services Baker storage and pipeline expansion I - Increase fi storage firm t d li bilit deliverability volumes by up to 125 MMcf per day Current firm withdrawal capacity of 115 MMcf per day -…
E&P Natural Gas & Oil Production Engaged in natural gas and oil production, development, exploration and acquisition activities Operated Areas 654 Bcfe B f off provedd natural t l gas Rocky Mountain Region and oil reserves…
Recent Acquisitions Natural Gas & Oil Production Bakken Lease ppurchase of 40,000 , net acres Primary target is Three Forks Sanish 3- to 5-year primary lease terms Oil play Niobrara Formation Lease purchase of 27,000 net acres…
Bakken Natural Gas & Oil Production Own approx. pp 56,000 net acres Mountrail County - 16,000 net acres in Mountrail County Current net production 2,500 barrels of oil per day Three Forks /Sanish potential - Three Forks test this…
Baker / Bowdoin Natural Gas & Oil Production Longg held fields MT Bowdoin ND Largest natural gas producer in Montana Baker Low cost properties SD 2010 projected capital expenditures - Approx. 30 million 120 wells to be drilled…
Hedging Strategy Natural Gas & Oil Production Hedges Assumed 2010 Prices (Feb Dec ) (Feb.-Dec.) 2010: Natural Gas 45% - 50% Natural Gas: - Weighted average swap price 5.94 Ventura - 5.00 - 5.50 - Weighted average collar floor/ceiling…
2010 Outlook Natural Gas & Oil Production C Capital it l E Expenditures dit - 375 million, illi iincluding l di approx. 150 million for growth opportunities Continue to pursue reserve growth through further exploitation of…
Construction Construction Materials & Contracting Diverse portfolio of products, services and geography - Significant aggregate reserves of 1.1 billion tons in strategic locations Construction Services Inside Outside…
Construction Materials & Construction Materials Locations Contracting States of Operations Perform work in 17 states 5,000 employees at peak 9th largest U.S. aggregate producer O One off only l three th in i Top T 10 that…
Vertical Integration Success Construction Materials & Contracting Asphalt oil Asphalt production Aggregate Construction based Cement sales Ready-mix concrete M D U R E S O U R C E S G R O U P, I N C. B U I L D I N G A S T…
Peer Comparison Construction Materials & Contracting Percentage Change in Revenue Percentage Change in Earnings 2009 vs. 2008 2009 vs. 2008 0% 60% 40% -5% 20% -10% 0% -15% -20% -40% -20% -60% -25% -80% 30% -30% 100%…
Strong Energy Industry Projects Construction Materials & Contracting MDU Resources Group, Inc. Building A Strong America 28
Stimulus Funding Breakdown Construction Materials & Contracting Percent of 7.9 billion obligated in key states as of February 1, 2010 Bridge Other Projects Transportation 12% New Construction Improvements 7% 4% 4% Asphalt…
2010 Outlook Construction Materials & Contracting M Maintain i t i strong t emphasis h i on efficiencies and cost reduction Well positioned to take advantage of government stimulus spending Continue to pursue work related to…
Construction Services Construction Services Offices Authorized States of Operations Inside Outside Industrial Specialty Equip. & Mat. - Electrical - Transmission & - Power Plants - Manufacture - Mechanical Distribution - Refineries…
Projects Construction Services Selected as EPC contractor for Montana Alberta Tie Line (MATL) - 214-mile transmission line - 215 million project; our portion approx. 120 million - Projected in-service mid-2011 Arrowhead Stadium…
2010 Outlook Construction Services Aggressively pursuing expansion in high voltage transmission construction, renewable resource construction and military installation services Continued focus on costs and efficiencies Good…
Credit & Liquidity At December 31, 2009 (millions) Capacity Outstanding Available Commercial Paper Programs 525 0 499 * Master Shelves 300 253 47 Revolving Credit Agreements 115 10 103 * Total 940 263 649 *Outstanding letters…
Indicated Annualized Dividend 5-YEAR CAGR 5.6% 5 6% History of paying consecutive 0.63 quarterly dividend payments for 72 years 0.51 Dividend increased November 2009, marking 19 consecutive years of increases Committed to…
Recognition Fortune 500 List No. 473 based on total revenues in 2008 No. 47 based on 10-year annual growth rate for earnings per share of 18 4% th 18.4% through h 2008 ated E&P No. 75 based on 10-year annual growth rate for…
Emerging from Recession ated E&P Growing Leveling Out Still Shrinking Construcction Regula Source: Moodys Economy.com MDU Resources Group, Inc. Building A Strong America 39
Key Considerations Diversified portfolio of businesses Vertically Integrated Asset-based Strong expertise In industries leveraged to economic recovery Solid balance sheet Substantial growth opportunities Regulated E&P…
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. Regulated E&P Construction MDU…
A STRONG INFRASTRUCTURE Regulated IS THE HEART OF E&P Construction OUR ECONOMY MDU Resources Group, Inc. Building A Strong America 42
Loading...
