RESOURCES Group, Inc . Investor Relations December 2014 1
Diversified Natural Resources Company Regulated 30% Construction Exploration 36% & Production 34% 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. 4
Shareholder Returns Total Annualized Shareholder Returns MDU 1 Year 2% 3 Year 16% 5 Year 9% 10 Year 7% 20 Year 12% Note: At Sept. 30, 2014 RESOURCES Group, Inc . 5
Strategic Growth Opportunities Fidelity E&P marketing and potential sale announced Nov. 3 Capital required to effectively grow E&P business would compromise ability to fund the substantial opportunities at other lines of business…
Electric & Natural Gas Utilities Operating in 8 states More than 1 million electric and natural gas customers in 448 communities 2.1% customer growth in 2013 Electric Natural Gas 138,000 customers 880,000 customers 639 MW of…
Rate Base & Earnings Growth More than tripled rate base and Projecting 11% CAGR in earnings since 2006 rate base next 5 years 1,400 80 2,800 1,200 2,400 1,000 60 2,000 800 1,600 40 600 1,200 400 20 800 200 400 0 0 0 (Millions)…
Thunder Spirit Wind Acquisition Recently signed agreement to purchase 43 wind turbines, 107.5 MW of electric generation Projected cost approx. 200 million To be developed by ALLETE Clean Energy with expected completion December…
BSSE Project Proposed MidcontinentISO multivalue 345kV transmission line 160 miles from Big Stone City, SD to Ellendale, ND Projected cost 170 million for companys share Route permits approved in ND and SD Expected completion…
Big Stone Station Environmental Upgrade Required retrofit installation Projected cost 90 million for companys share Environmental cost recovery rider approved in ND and included in rates Advanced determination of prudence for…
Supportive Regulatory Environments Regulatory actions ND, MT and SD natural gas rate cases approved with rate increases effective late 2013 totaling approx. 6.7 million MT natural gas case filed in August for approximate 3.0 million…
Outlook Record capital program plan to invest approximately 515 million in 2015; 1.8 billion during next 5 years Expect to grow rate base by approximately 1.1 billion, 11% compounded annually over next 5 years Expect to purchase…
Pipeline & Energy Services Regulated operations 3,800 miles of pipeline Over 1 Bcf/d system capacity 13 interconnecting points 3 storage fields with 193 Bcf working storage capacity Nonregulated operations 1,600 operated miles…
Bakken Opportunities Through Growing Production Pipeline Associated natural gas produced projected to grow as oil production grows Bakken Oil & (MBO/d) Bakken Natural Gas (MMcf/d) 3,900 Energy 2,750 Historical Forecast…
Dakota Prairie Refinery Began construction March 2013, Year 1 EBITDA projection of 60 approx. 95% complete million to 80 million split 50/50 To be completed end of this year Projected cost 360 million split Process 20,000…
Second Refinery Under Evaluation Barrels Per Day 70 To be located in the substantially undersupplied Bakken region of 60 North Dakota North Substantial Dakota ND diesel consumption YTD 2014 50 under- Demand supply averaged…
Wind Ridge Pipeline Project Designed to provide natural gas to CHS announced fertilizer plant near Spiritwood, ND 95 miles of 16 inch pipe Projected cost 120 million Initial capacity approx. 90 MMcf/d Exploring opportunities…
Growth in Invested Capital (Invested Capital) 1,200 1,000 Driving Pipeline & Energy Services earnings 800 growth through record 5-year 600 2015-2019 capital 400 program of 1.1 billion 200 - Dakota Prairie Wind…
Outlook Liquidrich midstream and refining opportunities Construction of joint venture 20,000 BOPD Dakota Prairie Refinery on schedule to go online end of this year Evaluating second diesel refinery in North Dakota, permitting has…
Construction Materials & Services Materials & Services21
Operational Capabilities Materials Services Top 10 U.S. producer, 5th largest sand Ranked No. 10 on The Top 600 and gravel producer Specialty Contractors List Increasingly valuable aggregate Highly skilled workforce reserves…
Building Momentum 140 Construction Earnings 121 120 111 103 100 Margin expansion 80 21% earnings growth 80 73 71 on 5% revenue growth 60 for TTM 2014 compared 48 48 to TTM 2013 40 20 0 (Millions) 2007 2008 2009 2010 2011…
Growing Demand Strength in energy markets - Combined North Dakota backlog of approx. 64 million - Texas materials market growing with refinery expansions and oil and gas drilling - Growing demand in Montana related to oil and gas…
Outlook 824 million combined work backlog as of Sept. 30 Bidding opportunities strong and additional backlog has been secured since Sept. 30 Revenue guidance of 1.7 billion to 1.8 billion for construction materials and 1.1 billion…
Exploration & Production YTD 9/30/2014 production 26 MBOEPD 55% Oil, 7% NGLs, 38% Natural Gas Proved reserves 81 MMBOE (51% Oil) at 12/31/13 Over 800,000 net leasehold acres 26
Marketing Fidelity Exploration & Production Company Continue to see attractive investment opportunities; however capital required to grow the business would compromise ability to fund the substantial opportunities at other lines of…
Production Mix Rebalance 2008 YTD 9/30/2014 Gas Gas 38% 80% Oil 16% NGL 7% Oil 55% NGL 4% Rebalancing portfolio toward higher returns for oil 28
Primary Oil Plays Bakken 105,500 net acres in Mountrail and Stark Counties, ND and Richland County, MT Development area 62,000 net acres with 2040 potential Three Forks locations and 310 Bakken locations Third quarter 2014 net oil…
Gas Properties Significant operated fields (all 100% WI) Baker Field, Fallon County, MT Bowdoin Field, Phillips County, MT Shiloh Field, Rusk County, TX YTD Sept. 30, 2014 net production of 60 MMCF/d Low cost/high margin…
Record Capital Program Construction 3.9 B Pipeline Utility Increase Cap Ex 1.9 B 104% over next 5 years 20102014 20152019 Note: Excludes proposed 375mile pipeline and E&P capital expenditures. 32
Credit & Liquidity At Sept. 30, 2014 (Millions) Capacity Outstanding Available Commercial Paper Programs 825 294 531 40% Revolving Credit Agreements 115 30 83 * Construction Total Exploration 940 324 614 24% & Production…
Dividend Growth 77 consecutive years of 0.73 quarterly dividend payments Dividend increased November 2014, 0.51 marking 24 consecutive years of increases Mergent Dividend Achiever since 2000 Committed to paying a 2005…
Outlook Strong outlook positioned for growth Plans to market Fidelity E&P company Allow funding of substantial opportunities at other lines of business including RESOURCES organic projects and acquisitions Pursue growth with a…
RESOURCES Group, Inc . Building a Strong America 37
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