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

Wells Fargo Energy Conference – MDU Resources Group Inc.

MDU Resources Group Inc. · Dec 31, 2011 · 45 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 – MDU Resources Group Inc. – slide 1
    Investor Relations Wells Fargo Energy Conference December 2011 Building A Strong America 1
  2. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 2
    Diversified Natural Resources Diversified Company Asset-Based Solid operators 31.5 26.4 Fiscally responsible track record Strong balance sheet Access to capital Exceptional E ti l workforce kf Construction Regulated…
  3. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 3
    Our Business Utilities Pipeline & Energy Regulated Services 44% Construction Exploration 20% & Production 36% Construction Materials & Contracting Regulated and Construction Non-regulated Note: Based on 12 months ended Sept.…
  4. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 4
    Proven Strategy Apply our expertise in energy and transportation infrastructure industries to increase market share share, increase profitability and enhance shareholder value. Growth Capital Allocation Opportunistic approach to…
  5. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 5
    Total Annualized Shareholder Returns At November 30, 2011 Year-to-Date 10-Year 10% 8% 8% 3% 1% -1% MDU S&P 500 S&P 400 MDU S&P 500 S&P 400 Resources Group, Inc. Building A Strong America 6
  6. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 6
    Regulated Electric i & Natural Gas Utilities ii i Distributes natural gas and electricity to 965,000 customers, and generates and transmits electricity. Pipeline & Energy Services Engaged in natural gas transportation,…
  7. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 7
    Electric & Natural Gas Utilities Electric WA 125,000 customers ID MT ND 3,000 miles of transmission lines MN OR 4,600 miles of distribution lines SD WY Generation: Owned: - 395 MW Coal Fired - 114 MW Gas Turbines - 55 MW…
  8. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 8
    Future Growth Electric & Natural Gas Utilities Plan to add generation to replace purchased power and meet capacity requirements Filed an advance determination of prudence with the North Dakota PSC in June to construct, own and operate…
  9. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 9
    Growing Rate Base & Earnings 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* *Trailing 12 months earnings 2011 2015 Five Year…
  10. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 10
    Outlook Electric & Natural Gas Utilities Rate base growth g Cost containment Capitalize on employee expertise through integration Customer Growth North Dakota oil activityy Load Growth Agriculture and industrial use of natural…
  11. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 11
    Pipeline & Energy Services Regulated operations Engaged in gathering, storage, transportation, 3,700+ miles of pipeline and energy service related activities. 750 MMcf/d system capability 11 interconnecting points WA 3 storage…
  12. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 12
    North Dakota Daily Production Pipeline & Energy Services (MMcf/d) (MBopd) 1 000 1,000 1 000 1,000 900 Historical Forecast 900 800 800 700 Current Record Prod 700 Oil 444 MBopd 600 600 Gas 462 MMcf/d 500 500 400 400 *Expect…
  13. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 13
    Growth Projects Pipeline & Energy Services Bakken Opportunities Charbonneau station natural gas pipeline expansion Installation of 2,370 horsepower of additional compression placed into service in September Potential of adding 27…
  14. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 14
    Natural Gas & Oil Production Proved Reserves - 646 Bcfe Oil - 31% RP ratio - 9.2 years As of 12/31/10 Total Assets - 1.5B Net Leasehold Acres - Approx. 1 million As of 9/30/11 3Q 2011 pproduction - 188 MMcfe/d Oil - 33% /…
  15. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 15
    Strategic Direction Natural Gas & Oil Production Significantly grow earnings and net asset value (NAV) by: Accelerating oil drilling to balance production to a nominal target of 50/50 Focusing investments initially on Rockies, Texas…
  16. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 16
    Strategic Growth Projects Natural Gas & Oil Production Potential Gross Approx. Potential Reserves/Well* Well Cost Net Acres Net Wells* Project Area Product (000s barrels) (millions) Bakken ND & MT Oil 90,000 100 125 250 500 7 8…
  17. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 17
    Growth Requires An Increasing Activity Set Rigs Number of Working Rigs Oil/Liquids / q (MBbls) 12 1400 Oil Production Actual Forecasted 10 1200 Oil/Liquids 10 Production 944 9 1000 8 802 821 33% 8 30% 800 29% Natural…
  18. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 18
    Bakken Acreage Natural Gas & Oil Production Bakken Approx. 90,000 net acres Mountrail County, Approx. 16,000 Currently our largest oil producing property Stark County, Approx. 50,000 Richland County, Approx. 24,000 Produced…
  19. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 19
    Avg Production Rates Bakken Natural Gas & Oil Production Improving p o g IP,, 30- 30 and a d 60-Day 60 ay Wells Completed Average IP (24 hr) Average 30 Day Rate Average 60 Day Rate (Through October 2011) BOEPD BOEPD BOEPD…
  20. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 20
    Bakken Saskatchewan Manitoba Bakken Mountrail MT Mountrail County ND County SD Mountrail County, y, ND 49 operated wells Non-operated interests in over 150 wells More than 50 future gross operated infill well locations…
  21. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 21
    Bakken Stark County Saskatchewan Manitoba Approx. 50,000 net Bakken acres on Natural Gass & Oil Productio Primary target Three IP Rate 3,612 BOEPD IP Rate 870 BOEPD IP Rate 454 BOEPD MT ND Forks formation Approx. 140…
  22. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 22
    Bakken Richland County Natural Gas & Oil Production Primary target Three Forks formation Approx. 24,000 net acres Approx.100 potential gross wells Gross EUR 250 400 MBO/well Expect to spud first appraisal well in early 2012…
  23. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 23
    Niobrara Oil Chesapeake 22 Permits, 9 drilled Springer Field: Samson, Devon 4Q Codell 22 MBO (1974) Play 2011 drilling EOG Approx. A 65,000 65 000 nett acres Barrett/RKI 21 Permits, P it 2 drilled d ill d 85…
  24. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 24
    Paradox Basin WY Natural Gas & Oil Production Paradox UT CO Grand County Hold approx approx. 75,000 75 000 net Cane Creek Unit acres San Juan County AZ Initial appraisal plan includes 2 wells in the next 6 months…
  25. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 25
    Heath Shale Play Natural Gas & Oil Production Hold approx. 80,000 net acres Cabot/Cirque Resources other major players Plan to drill 2 appraisal wells over next 6 months Approx. 40 200 potential net well locations Gross EUR…
  26. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 26
    South Texas Natural Gas & Oil Production Multi-zone ppotential ((stacked pplays) y ) Price uplift from high liquids yield Plans to drill approx. 12 wells this year Approx. 50 potential gross drilling locations Gross EUR 250 400…
  27. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 27
    Outlook Natural Gas & Oil Production Capital Expenditures totaling approx. 300 million in 2011 - Includes further exploitation of existing properties, exploratory drilling and 50 million for leasehold acquisitions Capital…
  28. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 28
    Construction Construction Materials & Contracting Diverse portfolio of products, services and geography Increasingly valuable aggregate reserves totaling 1.1 billion tons in strategic locations Construction Services Inside…
  29. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 29
    Construction Materials & Contracting States KRC performs work Perform work in 17 states Areas with physical operations 5,000 employees at peak Top 10 U.S. producer 5th Sand and gravel 9th Aggregate 9th Ready-mixed concrete…
  30. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 30
    Vertical Integration Complete Advantage MT ND Asphalt oil Asphalt production SD WY Aggregate Construction based Cement sales Ready-mix/Prestress/ Precast MDU Resources Group, Inc. Construction Building A Strong…
  31. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 31
    Changing Market Construction Materials & Contracting 2006 Backlog Mix 9/30/2011 Backlog Mix Peak Earnings Year Public Public 60% 91% Private Private 40% 9% MDU Resources Group, Inc. Construction Building A Strong…
  32. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 32
    Strong Markets Construction Materials & Contracting Ports of Southern California Long Beach - 25M contract for Phase I Los Angeles - 1.2 million tons of aggregate, contract through 2012 Booming North Dakota 53M backlog Western…
  33. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 33
    Outlook Construction Materials & Contracting Low cost structure - SG&A expenses p down more than 40% for the trailingg 12-months ended Sept. p 30, compared to 2006 annual expenses, the peak earnings year Sept. 30 backlog 448…
  34. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 34
    Construction Services Authorized states of operations Construction services offices Inside Outside Industrial Equipment & Materials - Electrical - Transmission & - Power Plants - Manufacture - Mechanical Distribution -…
  35. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 35
    Adaptability Construction Services Inside - Focus on maintenance and service work - Expertise in solar Outside - Large demand for upgrading and constructing transmission and distribution systems Aging transmission network Need…
  36. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 36
    Outlook Construction Services SG&A expenses down more than 30% for trailing 12- months ended Sept Sept. 30 30, compared to 2008 annual expenses, the peak earnings year Sept. 30 backlog at 331 million, compared to 317 million a…
  37. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 37
    Sept. 30 Year-to-Date Consolidated Results (Milli (Millions)) 151.2 * 151.5 2010 2011 Diversified 2010* 0 2011 earnings mix EPS .80 .80 *Includes natural gas pipeline arbitration charge of 26.6 million (16.5 million after…
  38. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 38
    Earnings Growth Member of S&P MidCap CAGR 2000-2008: 16.6% 400 400 0.70 350 0.60 300 0.50 (Annualized D (Earninggs - Millions) 250 0.40 200 0 30 0.30 Dividends) 150 0.20 100 50 0.10 0 0.00 2000 2001…
  39. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 39
    Cap Ex Growth Increase Cap Ex 27% 3 5B 3.5B in the next 5 years 2.7B 2006-2010 2011-2015 Regulated E&P Construction * Excludes acquisitions. MDU Resources Group, Inc. Building A Strong America 40
  40. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 40
    Strong Financial Position Sept. p 30 66% Equity 4,500 39% 4,000 36% 34% 37% 34% 3,500 37% 3,000 Millions) 2 500 2,500 Debt/Equity (M 2,000 1,500 1,000 63% 66% 61% 63% 64% 66% 500 0 12/31/2006 12/31/2007…
  41. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 41
    Credit & Liquidity At September 30, 2011 (Millions) Capacity Outstanding Available Commercial Paper Programs 500 --- 475 * Master Shelves 125 88 38 Revolving Credit Agreements 115 4 109 * Total 740 92 622 *Outstanding…
  42. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 42
    Indicated Annualized Consecutive quarterly dividend Dividend payments for 10-YEAR CAGR 5% 74 years 0.67 0 43 0.43 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Dividend increased November 2011, marking 21…
  43. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 43
    Construction Its Time to GrOw Regulated E&P Investing substantially in exploration of exciting plays to gain q more liquids exposure p Current strategic growth projects include approx. 400,000 net acres of leaseholds…
  44. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 44
    Our Vision With integrity, create superior shareholder value by expanding upon our expertise to be the supplier of choice h i in i allll off our markets k t while hil bbeing i a safe and great place to work. Construction…
  45. Wells Fargo Energy Conference – MDU Resources Group Inc. – slide 45
    Building A Strong America 46

From the store

Browse maps, data & reports in the Shale Experts store