Building a Strong America RESOURCES Group, Inc . Investor Relations March 2015 1
Diversified Natural Resources Company Regulated 30% Construction Exploration 36% & Production 34% Building a Strong America 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
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 quarter…
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%…
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…
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…
BSSE Project Proposed MidcontinentISO multivalue 345kV transmission line Building a Strong America 160 miles from Big Stone City, SD to Ellendale, ND Projected cost 170 million for companys share Recovery through MISO tariff Route…
Big Stone Station Environmental Upgrade Required retrofit installation Building a Strong America Projected cost 90 million for companys share Environmental cost recovery rider approved in ND and included in rates Advanced…
Supportive Regulatory Environments Regulatory actions Recovery in ND of Big Stone AQCS project through environmental tracker effective in July 2014; 8.6 million annually. MT natural gas case filed in August for 3.0 million annual…
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…
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 Nonregulated…
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 Fullyear 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…
Second Diesel Refinery Under Evaluation To be located in the substantially Barrels Per Day undersupplied Bakken region of 70 North Dakota ND diesel consumption estimated 60 North Substantial Dakota at 71,000 BPD; refine approx.…
Wind Ridge Pipeline Project Initially designed to provide natural gas to CHSannounced fertilizer plant near Spiritwood, ND North Dakota Potential to expand pipe size and add compression to serve eastern ND Approx. 96 miles…
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…
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…
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 users…
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
Operational Capabilities Materials Services Building a Strong America Top 10 U.S. producer, 5th largest sand and Ranked No. 10 on The Top 600 gravel producer Specialty Contractors List Increasingly valuable aggregate reserves…
Building Momentum 140 Construction 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 2012…
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,…
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…
Building a Strong America Exploration & Production 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…
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 2014 Gas Gas 38% 80% Oil 16% NGL 7% Oil 55% NGL 4% Rebalanced portfolio toward higher returns for oil Building a Strong America 28
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…
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…
Building a Strong America 2015 Outlook 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…
Building a Strong America Consolidated Results - GAAP Earnings EPS RESOURCES (millions) 1.55 297.5 1.47 278.2 2013 2014 2013 2014 32
Record Capital Program Construction 3.9 B Pipeline Utility Increase Cap Ex 1.9 B 105% over next 5 years 20102014 20152019 Note: Excludes E&P capital expenditures. Building a Strong America 34
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…
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…
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…
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…
Outlook Solid performance positioned for growth Building a Strong America Utility record approx. 1.8 billion fiveyear capital program driven by customer and load growth RESOURCES Pipeline record approx. 1.1 billion fiveyear…
RESOURCES Group, Inc . Building a Strong America 41
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