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Analyst Seminar - New York City – MDU Resources Group Inc.

MDU Resources Group Inc. · Mar 5, 2015 · 50 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. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 1
    Building a Strong America RESOURCES Group, Inc . Investor Relations March 2015 1
  2. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 2
    Diversified Natural Resources Company Regulated 30% Construction Exploration 36% & Production 34% Building a Strong America 3
  3. Analyst Seminar - New York City – 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 4
  4. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 4
    Looking Ahead Growth Opportunities Utility projecting 11% rate base growth compounded annually 2015 - 2019 Record 1.8 billion capital program in place to facilitate growth Pipeline commissioning Dakota Prairie Refinery in second…
  5. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 5
    Electric & Natural Gas Utilities Building a Strong America WA MT ND MN ID OR SD WY Operating in 8 states 1,032,000 electric and natural gas customers in 447 communities 2% customer growth in 2014 Electric sales up 4% in…
  6. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 6
    Rate Base & Earnings Growth More than tripled rate base and Projecting 11% CAGR in earnings since 2006 rate base next 5 years 1,600 80 2,800 1,400 2,400 1,200 60 2,000 1,000 1,600 800 40 1,200 600 400 20 800 200 400 0 0 0…
  7. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 7
    Thunder Spirit Wind Acquisition Recently signed agreement to purchase 43 wind turbines, 107.5 MW of electric generation Building a Strong America Projected cost approx. 200 million; 55 million already funded in 2014 Filed for…
  8. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 8
    BSSE Project Building a Strong America Proposed Midcontinent-ISO multi-value 345-kV transmission line 160 miles from Big Stone City, SD to Ellendale, ND Projected cost 170 million for companys share Recovery through MISO tariff Route…
  9. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 9
    Big Stone Station Environmental Upgrade Building a Strong America Required retrofit installation Projected cost 90 million for companys share Environmental cost recovery rider approved in ND and included in rates Advanced…
  10. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 10
    Supportive Regulatory Environments Completed NDPSC approved rate adjustment for Heskett III under the electric generation resource recovery rider effective January 2015; 5.3 million annually Recovery in ND of Big Stone AQCS project…
  11. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 11
    Outlook Record capital program - plan to invest approximately 1.8 billion during next 5 years Building a Strong America Expect to grow rate base by approximately 1.0 billion, 11% compounded annually over next 5 years Signed…
  12. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 12
    Pipeline & Energy Services Regulated operations Building a Strong America 3,800 miles of pipeline Over 1 Bcf/d system capacity 13 interconnecting points 3 storage fields with 193 Bcf working storage capacity Non-regulated…
  13. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 13
    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…
  14. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 14
    Dakota Prairie Refinery Began construction March 2013 Full-year EBITDA projection of Mechanically complete in March 60 million to 80 million split 50/50 Building a Strong America 2015 and projected to be on line Projected cost 400+…
  15. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 15
    Second Diesel Refinery Under Evaluation To be located in the substantially Barrels Per Day under-supplied Bakken region of 70 North Dakota ND diesel consumption estimated at 60 North Substantial 71,000 BPD; refine approx. 22,000…
  16. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 16
    Wind Ridge Pipeline Project Initially designed to provide natural gas to CHS-announced fertilizer plant near Spiritwood, ND North Dakota Potential to expand pipe size and add compression to serve eastern ND Approx. 96 miles of…
  17. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 17
    Demicks Lake Approx. 27 miles of 24 pipe from Demicks Lake processing North Dakota plant to Northern Border Measurement facilities at new Northern Border interconnect Demicks Lake Plant Site Projected cost 50 million - 60…
  18. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 18
    Growth in Invested Capital (Invested Capital) Building a Strong America 1,200 1,000 Driving Pipeline & Energy Services earnings growth through 800 record 5-year 2015-2019 capital program 600 of 1.1 billion 400…
  19. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 19
    Outlook Record capital program - plan to invest approximately 1.1 billion 2015 - 2019 Pursue additional pipeline, refinery and midstream opportunities Link Bakken production to Midcontinent markets Gas service to large industrial…
  20. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 20
    Construction Materials & Services States of operation Outside Equipment & Supply Market areas Inside Authorized States Industrial of Operation for Construction Services Building a Strong America Materials & Services21
  21. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 21
    Building Momentum 140 Construction Combined Earnings 121 120 114* 103 100 Margin expansion 80 11% earnings growth 80 73 71 on 5% revenue growth for 2014 60 48 48 compared to 2013 40 20 0 (Millions) 2007 2008 2009 2010 2011…
  22. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 22
    Operational Capabilities Construction Materials Building a Strong America Top 10 U.S. producer, 5th largest sand and gravel producer Increasingly valuable aggregate reserves totaling 1.1 billion tons in strategic locations Record…
  23. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 23
    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 Gov. Abbott and Legislature seeking 5 billion more in sustainable funding for highway…
  24. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 24
    North Central Region ND MN SD ND approves 1.1 billion surge bill to fund infrastructure improvements IA NE Iowa passed 10-cent gas tax increase Landed 26 million worth of work in Iowa last week Picked up 10 million paving job in…
  25. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 25
    Pacific Region AK CA Increasing cement storage/efficiencies in Alaska 5.3 billion light rail system under construction through 2018 in Hawaii Hawaiian ready-mix market looking up as residential HI construction grows Northern…
  26. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 26
    Intermountain Region MT 36 million project at Mountain Home AFB in Idaho ID 28 million I-84 Interchange in Boise WY 12 million project at FE Warren AFB in Wyoming Montana housing recovery just landed 3 subdivision jobs in Billings…
  27. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 27
    Northwest Region WA Railroad work growing precast, construction, aggregates Producing bridge girders for Union Pacific OR Private market improving Subdivisions and tech industry in Central Oregon 5 billion LNG project in Coos Bay…
  28. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 28
    Operational Capabilities Construction Services Building a Strong America Ranked No. 10 on The Top 600 Specialty Contractors List 2014 second consecutive year of record earnings Highly skilled workforce Inside Electrical…
  29. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 29
    Building a Strong America Outside Project Success Prairie ClickWind Transmission to edit Master text styles Wichita, KS to Woodward, OK Second level 108-miles of double circuit 345kV Third transmission linelevel Fourth level…
  30. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 30
    Building a Strong America Inside Project Success Mission critical Click to edit Master text styles Current: Northwest, Las Vegas & Second level Midwest ThirdEast Opportunities: level coast Fourth level Solar & renewables Fifth…
  31. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 31
    Building a Strong America Industrial Project Success Petrochemical Click to editrefinery Master text styles industry Second level Water purification Third level Power generation & distribution Fourth level…
  32. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 32
    Building a Strong America Equipment & Supply Success Wagner-Smith Equipment Click to edit Master text styles Complete Second Burleson levelnew facility Capitalize on Phoenix expansion Third level Expand WSE into Colorado Fourth…
  33. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 33
    Successful Bidding Click to edit Master text styles Second level Third level Fourth level Fifth level Building a Strong America Materials Services& Services34
  34. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 34
    Growing Demand Strength in energy markets - Growing demand and infrastructure catch up - Greenfielding materials and equipment and supply locations - Services expertise in transmission and distribution, substation construction,…
  35. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 35
    Outlook 743 million combined work backlog as of Dec. 31 Additional backlog has been secured since Dec. 31 Revenue guidance of 1.7 billion to 1.9 billion for construction materials and 1.1 billion to 1.3 billion for construction…
  36. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 36
    Exploration & Production Building a Strong America 2014 Statistics: Production 25 MBOEPD 55% Oil, 7% NGLs, 38% Natural Gas Proved reserves 92 MMBOE (48% Oil) at Dec. 31 342% Reserve Replacement Ratio; 307% Oil RRR 82 million…
  37. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 37
    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…
  38. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 38
    Production Mix Rebalance 2008 2014 Gas Gas 80% 38% Oil 16% NGL 7% Oil 55% NGL 4% Rebalanced portfolio toward higher returns for oil Building a Strong America 39
  39. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 39
    Primary Oil Plays Bakken 48,700 net acres in Mountrail and Stark Counties, ND Development areas have 60 Three Forks locations and 40 Bakken potential locations Fourth quarter 2014 net oil production of 6,000 BOPD 1 to 2 rigs…
  40. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 40
    Gas Properties Significant operated fields (all 100% WI) Baker Field, Fallon County, MT Bowdoin Field, Phillips County, MT Shiloh Field, Rusk County, TX 2014 net production of 57 MMCF/d Low cost/high margin production at Baker and…
  41. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 41
    2015 Outlook Building a Strong America Strategy Cash flow positive business in a 50 oil price and 3 gas price environment while enhancing the value of the company for future sale Imperatives Reduce overall cost structure…
  42. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 42
    Consolidated Results - GAAP Building a Strong America Earnings EPS RESOURCES (millions) 1.55 297.5 1.47 278.2 2013 2014 2013 2014 43
  43. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 43
    Consolidated Results - Adjusted Building a Strong America Adjusted Earnings Adjusted EPS (millions) RESOURCES 206.0 1.07 191.5 1.01 2013 2014 2013 2014 Reconciliation 2013 2014 GAAP earnings 278.2 297.5 Exploration and…
  44. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 44
    Record Capital Program Construction 3.9 B Pipeline Utility Increase Cap Ex 1.9 B 105% over next 5 years 2010-2014 2015-2019 Note: Excludes E&P capital expenditures. Building a Strong America 45
  45. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 45
    Strong Financial Position 2014 Building a Strong America RESOURCES 61% Equity / 39% Debt 6,000 5,000 4,000 Debt/Equity (Millions) 3,000 2,000 1,000 0 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014…
  46. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 46
    Credit & Liquidity At Dec. 31, 2014 (Millions) Capacity Outstanding Available Commercial Paper Programs 825 289 536 40% Revolving Credit Agreements 115 21 92 * Construction Total Exploration 940 310 628 24% & Production…
  47. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 47
    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 2006 2007…
  48. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 48
    Funding Plan for 2015 Based on current estimates, the companys plan to fund gross capital expenditures of 778 million and dividends includes the following sources: Funding Sources Estimates Operating cash flows 650M - 700M Debt 150M…
  49. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 49
    Outlook Building a Strong America Solid performance positioned for growth Utility record approx. 1.8 billion five-year capital program driven by customer and load growth RESOURCES Pipeline record approx. 1.1 billion five-year…
  50. Analyst Seminar - New York City – MDU Resources Group Inc. – slide 50
    RESOURCES Group, Inc . Building a Strong America 51

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