Skip to main content Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. | Shale Experts
Loading...
Pm

Wells Fargo Energy Conference Presentation – MDU Resources Group Inc.

MDU Resources Group Inc. · Dec 2, 2015 · 52 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. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 1
    RESOURCES Group, Inc Building a Strong America . Investor Relations December 2015 1
  2. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 2
    Building a Strong America Building a Strong America PIPELINE 3
  3. Wells Fargo Energy Conference Presentation – 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. Building a Strong America PIPELINE…
  4. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 4
    Building a Strong America Positioned for Long-term Growth Lower-risk business model with limited commodity price exposure Strategic sale of Fidelity Exploration & Production assets substantially complete RESOURCES Assets and…
  5. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 5
    Electric & Natural Gas Distribution Electric & Natural Gas Utilities Building a Strong America WA MT ND MN ID OR SD WY Operating in 8 states 1,037,000 electric and natural gas customers in 447 communities Electric…
  6. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 6
    Business Overview Regulated model: Low risk; franchised service areas Reliable earnings and cash flows Geographic diversity Average customer growth across eight states greater than national average Organic growth opportunities…
  7. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 7
    Rate Base & Earnings Growth 1,600 80 1,400 More than tripled rate base and 1,200 60 earnings since 2006 1,000 Projecting 7% rate base growth 800 40 compounded annually for 5-year 600 forecast through 2020 400 20 1.5 billion 5-year…
  8. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 8
    Thunder Spirit Wind Acquisition Agreement to purchase 43 wind turbines, 107.5 MW of electric generation Electric & Natural Gas Distribution To be located near Hettinger in southwestern North Dakota Building a Strong America…
  9. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 9
    BSSE Project Proposed Midcontinent-ISO multi-value 345-kV transmission line Electric & Natural Gas Distribution 160 miles from Big Stone City, SD to Ellendale, ND Building a Strong America Projected cost 205 million for companys…
  10. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 10
    Big Stone Station Environmental Upgrade Required retrofit installation Electric & Natural Gas Distribution Building a Strong America Cost approx. 90 million for companys share Environmental cost recovery rider approved in ND and…
  11. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 11
    Additional Organic Growth Opportunities 19-MW natural gas generation near Lewis & Clark Station approx. 40 million 2015 Bakken region investments approx. 56 million Large scale resource included in Integrated Resource Plan filing 200…
  12. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 12
    Supportive Regulatory Environments Completed Cases MT natural gas rate increase request of 3 million annually; new rates of 2.5 million annually implemented May 20 WY natural gas rate increase request of 788,000 annually; new rates of…
  13. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 13
    Supportive Regulatory Environments (cont.) Pending Cases MT electric rate case request of 11.8 million annually; interim increase of 11.0 million requested SD electric rate case request of 2.7 million annually SD natural gas rate…
  14. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 14
    Utilities Outlook Organic growth opportunities expected to result in substantial rate base growth Estimating 7% rate base growth compounded annually over next 5 years Plan to invest approx. 1.5 billion over next 5 years Timely…
  15. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 15
    Pipeline & Energy Services FERC regulated operations Building a Strong America 3,800 miles of pipeline 137,391 HP compression PIPELINE Over 1.4 Bcf/d system capacity 193 Bcf working storage Non-regulated operations 1,600…
  16. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 16
    Business Overview Low risk/stable returns with regulated business High quality customers Pipeline projects totaling 137,000 dkt/day completed in 2014 contributing to current and future earnings Pronghorn oil and gas gathering and…
  17. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 17
    New President & CEO Martin Fritz Extensive industry experience 15-year career with large midstream business Strong track record of business growth Bachelors degree business and economics and law degree Legal experience includes…
  18. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 18
    2015-2016 Project Updates North Badlands Expansion Project Overview 4 miles 16 loop of Garden Creek II pipeline Measurement and associated facilities Timeline Precedent and interconnect agreements executed August 2015 Sold…
  19. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 19
    2015-2016 Project Updates Northwest ND Expansion Project Overview Modify existing compression Charbonneau new unit Williston re-cylinder 47,000 mcf/day of capacity Timeline Precedent Agreement signed May 2015 Sold 8,000…
  20. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 20
    Demicks Lake Project Approx. 22 miles of 24 pipe from Demicks Lake processing plant to Northern Border North Dakota Measurement facilities at new Northern Border interconnect Demicks Lake Plant Site Projected cost 50 million -…
  21. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 21
    Dakota Prairie Refinery Process Bakken crude Products 20,000 barrels/day Building a Strong America Diesel fuel, market locally ATBs Diesel Naphtha and ATBs, rail 1/3 1/3 PIPELINE Located near Dickinson, ND Mechanically…
  22. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 22
    Outlook North Dakota Diesel Demand 90 80 70 60 50 40 30 20 10 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: Third-Party Consulting Firm Actual Forecast Oil field and agriculture demand are the main…
  23. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 23
    DPR Strategically Sound Longer Term Go-live market challenges Increased crude cost due to narrowing Bakken basis differential Markets for diesel/naphtha currently depressed Decreased oil field activity reducing diesel demand…
  24. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 24
    Pipeline Outlook Become the leading pipeline company and midstream provider in operational areas Accelerate WBIs growth Develop midstream culture Aggressively pursue growth in existing areas Evaluating expansion into other basins…
  25. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 25
    Construction Materials & Services Building a Strong America Materials & Services26
  26. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 26
    Building Momentum 140 Construction Combined Earnings 125 121 120 114 103 100 Margin expansion 80 25% earnings growth 80 73 71 on 4% revenue growth for TTM 60 48 48 9/30/15 40 20 0 (Millions) 2007 2008 2009 2010 2011 2012 2013…
  27. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 27
    Business Overview Construction Materials Top 10 U.S. aggregate and sand and gravel producer Building a Strong America Increasingly valuable aggregate reserves totaling 1.1 billion tons in strategic locations Vertically integrated…
  28. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 28
    Long-Term Federal Highway Bill Passed Congress passed Fixing Americas Surface Transportation Act FAST Act, effective Dec. 4 First long-term transportation funding bill since SAFETEA-LU in 2005 305 billion five-year highway funding…
  29. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 29
    Strong Markets Operations in 10 of the Top 16 Markets Rank State Rank State Ranked by Business 1 ND 9 NY Insider in 7 categories: 2 CO 10 OR GDP per capita 3 DC 11 CA Unemployment rate 4 TX 12 FL Avg. weekly wages 5 WA 13 WY 6 MA…
  30. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 30
    Economic Indicators Year-over-year data Sept 2014 Sept 2015 Housing Starts 17.8% 17.5% Building Permits 2.5% 4.7% Total Construction Spending 2.9% 14.1% Pvt. Construction Spending 3.4% 16.0% Pub. Construction Spending 1.7% 9.4%…
  31. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 31
    South Region TXDOT letting budget for 2015 and 2016 is 7 billion TX Prop 1 in Texas provides additional 1.7 billion to State Highway Fund in 2015 Secured 27 million highway project in Waco Large LNG projects moving forward in…
  32. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 32
    North Central Region ND MN ND approved 1.1 billion surge bill to fund infrastructure improvements, on top of 2.2 billion SD DOT road budget IA NE Two 24 million highway jobs in North Dakota Iowa passed 10-cent gas tax increase…
  33. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 33
    Pacific Region AK CA 5.3 billion light rail system under construction through 2018 in Hawaii Hawaiian ready-mix market looking up as residential construction grows HI Northern California markets are improving, with residential,…
  34. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 34
    Intermountain Region MT Montana and Idaho are experiencing strong housing recovery ID WY Idaho passed 7-cent gas tax increase (94 million/year) Wyoming passed 10-cent gas tax increase At a glance (70 million/year) Employees:…
  35. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 35
    Northwest Region WA Washington passed 16-year, 16 billion tax and fee increase OR Oregon railroad work growing Subdivisions and tech industry in Central Oregon 5 billion LNG project in Coos Bay is moving forward At a glance…
  36. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 36
    Growing Backlog 600 525 533 500 464 476 400 Backlog (millions) 300 200 100 0 2012 2013 2014 2015 Note: As of September 30 Building a Strong America Materials & Contracting 37
  37. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 37
    Positive Momentum Building a Strong America 100 90 93.5 80 70 Earnings (millions) Materials & Contracting 60 59.9 50 50.9 40 30 32.4 20 10 0 2012 2013 2014* 9/30/2015 TTM* Earnings *Adjusted earnings.…
  38. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 38
    Business Overview Construction Services Building a Strong America Ranked No. 8 on The Top 600 Specialty Contractors List 2014 second consecutive year of record earnings 458 million backlog at Sept. 30 three sequential quarters of…
  39. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 39
    Outside Project Success Building a Strong America Capital Electric Line Builders Building on past success Secured Transource project Expanding customer base Loy Clark 5-year contract extension on a master service agreement…
  40. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 40
    Inside Project Success Building a Strong America Mission critical Current: Northwest, Las Vegas & Midwest Solar & renewables Government facilities U.S. Department of Defense top contractor Healthcare Mission Critical…
  41. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 41
    Industrial Project Success Building a Strong America Petrochemical refinery industry Turnarounds Capital projects Maintenance Power generation and distribution Automotive Instrumentation and Services controls 42
  42. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 42
    Equipment Success Building a Strong America Wagner-Smith Equipment Completed new Burleson facility Additional manufacturing capacity Services 43
  43. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 43
    Financial Success Building a Strong America Operating company Recent wins Capital Electric Construction Governmental facility Oregon Electric Group Various mission critical projects Bombard Electric Commercial & residential solar…
  44. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 44
    Positive Momentum Building a Strong America 60 500 459 458 54.5 50 52.2 400 40 325 Earnings (millions) Backlog (millions) 38.4 300 305 30 31.6 200 20 100 10 Services 0 0 2012 2013 2014 9/30/2015 TTM*…
  45. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 45
    Construction Outlook 991 million combined work backlog as of Sept. 30 Construction materials backlog 12% higher Construction services backlog 32% higher than last year, positioning for stronger 2016 Revenue guidance of 1.8 billion to…
  46. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 46
    Fidelity Exploration & Production Sale Entered into five purchase and sale agreements Closed on sale of 4 asset sales packages 1 asset sales package PSA did not close; asset has been remarketed and expect to close on sale in January…
  47. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 47
    Consolidated Results - Adjusted YTD September 30 Building a Strong America Adjusted Earnings Adjusted EPS RESOURCES (millions) 137.7 131.4 0.72 0.67 2014 2015 2014 2015 Reconciliation 2014 2015 GAAP earnings 213.5…
  48. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 48
    Strong Financial Position Building a Strong America Sept. 30, 2015 52% Equity / 48% Debt RESOURCES 6,000 5,000 4,000 Debt/Equity (Millions) 3,000 2,000 1,000 0 12/31/2011 12/31/2012 12/31/2013 12/31/2014…
  49. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 49
    Credit & Liquidity At Sept 30, 2015 (Millions) Capacity Outstanding Available Commercial Paper Programs 825 498 288 * 40% Revolving Credit Agreements 190 69 104 * Construction Total Exploration 1,015 567 392 24% & Production…
  50. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 50
    25 Years of Dividend Growth 0.75 78 consecutive years of quarterly dividend payments Dividend increased November 2015, 0.51 marking 25 consecutive years of increases Committed to paying a competitive dividend 2005 2006 2007…
  51. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 51
    Consolidated Outlook Positioned for long-term growth with lower-risk business model Strategic sale of Fidelity Exploration & Production assets substantially complete Building a Strong America Utility growth opportunities expected…
  52. Wells Fargo Energy Conference Presentation – MDU Resources Group Inc. – slide 52
    RESOURCES Group, Inc . Building a Strong America 53

From the store

Browse maps, data & reports in the Shale Experts store