{"success":true,"data":{"pressRelease":{"id":"25669","rtpr_id":"nPn9tg4Xa","ticker":"MDU","exchange":"NYSE","all_tickers":["MDU"],"title":"MDU Resources Reports First Quarter 2026 Results; Progress on Proposed Bakken East Pipeline","author":"PR Newswire","published_at":"2026-05-07T12:30:01.127Z","article_body":"MDU Resources Reports First Quarter 2026 Results; Progress on Proposed Bakken East Pipeline\n\nPR Newswire\n\nBISMARCK, N.D., May 7, 2026\n\n * Strong open season interest for proposed Bakken East Pipeline Project\n * Consolidated net income of $80.8 million and diluted earnings per share of\n$0.39\n * Milder weather unfavorably impacted results by approximately $0.03 per share\n * 2026 guidance affirmed; earnings per share in the range of $0.93 to $1.00\nBISMARCK, N.D., May 7, 2026 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:\nMDU) today announced its financial results for the first quarter of 2026,\nhighlighting continued execution across its segments, despite milder weather,\nas well as positive outcomes from recent capital investments and meaningful\nprogress on its proposed Bakken East Pipeline Project.\n\n(https://mma.prnewswire.com/media/435402/MDUR_logo_Logo.html)\n\nDuring the quarter, a successful binding open season for the proposed Bakken\nEast Pipeline Project concluded with approximately 1.4 billion cubic feet per\nday of submitted interest. Of that total, approximately 40% has been signed\nunder precedent agreements with additional precedent agreements in active\nnegotiation. Based on submitted interest, we are now projecting total capital\ninvestment for the potential project in the range of $2.7 billion to $3.2\nbillion, which would be incremental to our current $3.1 billion capital\ninvestment forecast. The company has not reached a final investment decision\non this project and will continue to finalize precedent agreement negotiations\nbefore proceeding with a decision. As we look to finance a project of this\nsize and scope, we will evaluate all options including using our balance\nsheet, pursuing potential partnerships and various other options. We will\ncontinue to provide updates on this potential project as details develop.\n\nRecent investments, including Badger Wind Farm and the Minot Expansion\nProject, are delivering financial benefits and supporting customer demand,\nwhile emerging opportunities tied to data center growth across our service\nterritory reinforces the long-term value of the company's infrastructure\nportfolio.\n\n\"We delivered a strong first quarter when accounting for the impact of warmer\nweather across our service territory,\" said Nicole A. Kivisto, president and\nCEO of MDU Resources. \"Milder conditions reduced volumes, and normalization\nmechanisms in several of our states helped offset those impacts, demonstrating\nthe strength of our regulated businesses. At the same time, rate relief as\nwell as recent investments such as Badger Wind Farm and our pipeline\nexpansions contributed positive results. Additionally, we continue to see\nencouraging demand trends, including continued interest from data center\ndevelopment and strong interest in our proposed Bakken East Pipeline Project.\"\n\nThe following summarizes the company's first quarter results for the three\nmonths ended March 31:\n 2026 2025\n\n Net income (in millions) $ 80.8 $ 82.0\n Earnings per share, diluted $ .39 $ .40\n\n\"Our ability to deliver consistent results in a dynamic energy environment\nspeaks to the strength and operational discipline of our teams,\" Kivisto\nadded. \"Our employees remain focused on safety, reliability and\ncost-effectiveness, enabling us to deliver long-term value to our customers\nand stockholders.\"\n\nElectric Utility Segment\nBenefits from Badger Wind Farm recovery, more than offset by impacts from\nmilder weather\n\n * Lower volumes due to 10% to 30% milder temperatures across our service\nterritory\n * Higher interest expense and depreciation largely related to Badger Wind Farm\ninvestment\n * Higher retail revenue driven by renewable cost recovery and rate mechanisms\nassociated with Badger Wind Farm\nThe electric segment earned $14.5 million in the first quarter of 2026,\ncompared with $15.0 million in the first quarter of 2025. Badger Wind Farm was\nplaced in service Dec. 31, 2025, and this marked the first full quarter of\nbenefits from the investment, driving higher retail revenues and recovery.\nThese benefits were more than offset by milder weather, which drove lower\nretail sales volumes of approximately $2 million.\n\nRegulatory Update:\n\n * Montana: Interim electric rates approved for an annual increase of $10.4\nmillion; rates effective April 1, 2026, subject to refund; reflecting recovery\nof infrastructure investments, including Badger Wind Farm, and associated\ndepreciation and operation and maintenance expense\n * Wyoming: General rate case settlement approved for an annual increase of $5.8\nmillion; rates effective April 1, 2026; reflecting recovery of infrastructure\ninvestments as well as associated operation and maintenance expense\n * North Dakota: General rate case filing is anticipated later this year\nNatural Gas Distribution Segment\nLower volumes largely offset by weather normalization mechanisms and rate\nrelief\n\n * Lower retail and transportation volumes due to warmer weather\n * Continued customer growth of approximately 1.5% year-over-year\n * Rate relief across multiple jurisdictions\nThe natural gas distribution segment earned $44.2 million in the first quarter\nof 2026, compared with $44.7 million in the first quarter of 2025. Results\nreflect lower volumes driven by warmer weather, approximately a $5 million\nimpact, due to 10%-30% warmer temperatures across our service territory\ncompared to last year, including temperatures 20% higher in Idaho and 30%\nhigher in Montana. Weather normalization mechanisms in certain states helped\noffset the warmer temperatures. Additionally, the lower volumes were largely\noffset by rate relief in Washington, Idaho, Montana and Wyoming.\n\nRegulatory Update:\n\n * Oregon: Pending general rate case filed Nov. 25, 2025, requesting an annual\nincrease of $16.4 million; reflecting rate base growth, along with associated\ndepreciation and increased operation and maintenance expense\n * Idaho: General rate case settlement approved for an annual increase of $13.0\nmillion; rates effective Jan. 1, 2026\n * Washington: Year two rates under the approved multi-year rate plan,\nrepresenting an annual increase of $10.8 million, effective March 1, 2026; in\nApril 2026, filed a revision to decrease revenue by $2.1 million annually due\nto forecasted plant that was not placed in service as of Dec. 31, 2025\n* The company anticipates filing a multi-year general rate case this year\n * Wyoming: System Safety and Integrity Rider filed Aug. 15, 2025; hearing held\nApril 9, 2026, pending before the Wyoming Public Service Commission\n * Minnesota: General rate case filing is anticipated later this year\nPipeline Segment\nLower storage-related revenue partially offset by contributions from recent\nexpansion projects placed in service\n\n * Decreased interruptible storage withdrawals\n * Increased operation and maintenance expense\n * Positive results from recent projects placed in service\nThe pipeline segment earned $15.3 million in the first quarter of 2026,\ncompared to a record $17.2 million in the first quarter of 2025. Results were\nimpacted by lower interruptible natural gas storage withdrawals, along with\nhigher operation and maintenance expense primarily due to increased material\ncosts and payroll-related expenses. Higher Montana property tax accruals also\ncontributed to the year-over-year decrease.\n\nThese impacts were partially offset by continued strong customer demand for\nshort-term natural gas transportation contracts as well as contributions from\na growth project recently placed in service.\n\nPipeline Segment Strategic Projects Updates:\n\n * Proposed Bakken East Pipeline Project: While a final investment decision has\nnot yet been made, customer interest and ongoing commercial discussions\ndemonstrate continued demand for additional takeaway capacity from the Bakken\nregion. Included in the 1.4 billion cubic feet per day of interest is a firm\ncapacity commitment of $50 million annually for ten years from the State of\nNorth Dakota, reinforcing the strategic importance of the project to regional\nenergy infrastructure and economic development. The company continues to\nadvance the project in a disciplined manner, navigating evolving market\ndynamics that include regional data center development considerations, while\nmaintaining a focus on long-term value creation and capital efficiency. Phase\nOne of the proposed project is targeted to be complete in November 2029, with\nPhase Two targeted to be complete in November 2030.\n * Line Section 32 Expansion Project: This project will provide natural gas\ntransportation service to a new electric generation facility in northwest\nNorth Dakota. A FERC Section 7(c) application was filed in March 2026, marking\nan important regulatory milestone in the project's development. The project is\ndependent on regulatory approvals with construction targeted to be complete in\nlate 2028.\n * Minot Industrial Project: This proposed project could consist of an\napproximately 90-mile pipeline from Tioga, North Dakota to Minot, North Dakota\nand ancillary facilities to support anticipated industrial demand in the area.\nAn agreement is in place to provide cost recovery protections during the\ndevelopment phase, with the agreement currently extended through late 2026.\nEquity and Funding Plan\nIn connection with the company's December 2025, follow-on public offering, a\nportion of the related forward sale agreements were settled on March 13, 2026,\nresulting in the issuance of 4.3 million shares of new common stock for\nproceeds of $81.3 million. The company had previously stated it expects to\nissue between $150 million to $175 million of equity in 2026, and between $100\nmillion to $125 million in 2027, to support near-term capital expenditures for\ngrowth.\n\nGuidance\nFor 2026, MDU Resources expects earnings per share to be in the range of $0.93\nto $1.00.\n\nThe expected 2026 results are based on these assumptions:\n\n * Normal weather, economic and operating conditions for the remainder of the\nyear\n * Continued growth in utility customers at 1%–2% annually\n * Successful execution of approved capital investment and rate recovery plans\n * Continued execution of its debt and equity financing plans\nThe company's long-term EPS guidance remains unchanged with an expected growth\nrate of 6%–8%.\n\nConference Call\nMDU Resources will webcast its first quarter 2026 earnings conference call\ntoday at 2 p.m. ET. The webcast can be accessed at www.mdu.com\n(http://www.mdu.com) under the \"Investors\" heading. Select \"Events &\nPresentations,\" and click on \"Q1 2026 Earnings Conference Call.\" After the\nwebcast, a replay will be available at the same location.\n\nAbout MDU Resources Group, Inc.\nMDU Resources Group, Inc., a member of the S&P SmallCap 600 index,\ndelivers safe, reliable, cost-effective and environmentally responsible\nelectric utility and natural gas distribution services to more than 1.2\nmillion customers across the Pacific Northwest and Midwest. In addition to its\nutility operations, the company's pipeline business operates a more than\n3,800-mile natural gas pipeline network and storage system, ensuring reliable\nenergy delivery across the Northern Plains. With a legacy spanning over a\ncentury, MDU Resources remains focused on energizing lives for a better\ntomorrow. For more information about MDU Resources, visit www.mdu.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4682643-1&h=1739749436&u=https%3A%2F%2Fwww.mdu.com%2F&a=www.mdu.com)\nor contact the investor relations department at investor@mduresources.com\n(mailto:investor@mduresources.com) .\n\nInvestor Contact: Brent Miller, treasurer, 701-530-1730\nMedia Contact: Byron Pfordte, director of integrated communications,\n208-377-6050\n\nCautionary Note Regarding Forward-Looking Statements\nThis news release contains forward-looking statements within the meaning of\nthe federal securities laws. Other than statements of historical facts, all\nstatements which address activities, events or developments that the company\nanticipates will or may occur in the future are based on underlying\nassumptions (many of which are based, in turn, upon further assumptions),\nincluding but not limited to, statements identified by the words\n\"anticipates,\" \"estimates,\" \"expects,\" \"intends,\" \"plans,\" and \"predicts,\" in\neach case related to such things as growth estimates, stockholder value\ncreation, the company's \"CORE\" strategy, capital expenditures, financial\nguidance, trends, objectives, goals, dividend payout ratio targets, earnings\nper share growth targets, customer rates, regulatory approvals,\nsustainability, strategies and other such matters, are forward-looking\nstatements. These forward-looking statements are based on many assumptions and\nfactors, which are detailed in the company's filings with the U.S. Securities\nand Exchange Commission.\n\nWhile made in good faith, these forward-looking statements are based largely\non the company's expectations and judgments and are subject to a number of\nrisks and uncertainties, many of which are unforeseeable and beyond the\ncompany's control. For additional discussion regarding risks and uncertainties\nthat may affect forward-looking statements, see \"Risk Factors\" disclosed in\nthe company's most recent Annual Report on Form 10-K, and subsequent filings.\nAny changes in such assumptions or factors could produce significantly\ndifferent results. Undue reliance should not be placed on forward-looking\nstatements, which speak only as of the date they are made. Except as required\nby applicable law, the company undertakes no obligation to update the\nforward-looking statements, whether as a result of new information, future\nevents or otherwise.\n Consolidated Statements of Income\n Three Months Ended\n March 31,\n 2026 2025\n (In millions, except per\n share amounts)\n (Unaudited)\n Operating revenues $ 606.0 $ 674.8\n Operating expenses:\n Purchased natural gas sold 239.4 317.2\n Electric fuel and purchased power 46.1 43.7\n Operation and maintenance 114.8 111.1\n Depreciation and amortization 54.2 51.3\n Taxes, other than income 35.8 38.7\n Total operating expenses 490.3 562.0\n Operating income 115.7 112.8\n Other income (expense) 2.6 5.0\n Interest expense 32.7 26.8\n Income before income taxes 85.6 91.0\n Income tax expense 4.7 8.5\n Income from continuing operations 80.9 82.5\n Discontinued operations, net of tax (.1) (.5)\n Net income $ 80.8 $ 82.0\n\n Earnings per share – basic:\n Income from continuing operations $ .39 $ .40\n Discontinued operations, net of tax — —\n Earnings per share – basic $ .39 $ .40\n Earnings per share – diluted:\n Income from continuing operations $ .39 $ .40\n Discontinued operations, net of tax — —\n Earnings per share – diluted $ .39 $ .40\n Weighted average common shares outstanding – basic 205.4 204.1\n Weighted average common shares outstanding – diluted 207.0 205.0\n\n Selected Cash Flows Information\n Three Months Ended\n March 31,\n 2026 2025\n (In millions)\n Net cash provided by operating activities $ 149.2 $ 217.5\n Net cash used in investing activities (91.2) (94.8)\n Net cash used in financing activities (32.9) (130.1)\n Increase (decrease) in cash, cash equivalents and restricted cash 25.1 (7.4)\n Cash, cash equivalents and restricted cash - beginning of year 28.2 66.9\n Cash, cash equivalents and restricted cash - end of period $ 53.3 $ 59.5\n\n Capital Expenditures\n Business Line 2026 2027 2028 2029 2030 2026-2030\n Estimated Estimated Estimated Estimated Estimated Total\n Estimated\n (In millions)\n Electric $ 144 $ 309 $ 250 $ 184 $ 210 $ 1,097\n Natural gas distribution 361 295 240 254 223 1,373\n Pipeline 60 70 181 282 50 643\n Total capital expenditures(1) $ 565 $ 674 $ 671 $ 720 $ 483 $ 3,113\n\n (1) Excludes Other category\n Note: Total capital expenditures is presented on a net basis\n\nThe capital program is subject to continued review and modification by the\ncompany. Actual expenditures may vary from estimates. Investment in the\npotential Bakken East Pipeline project would be incremental to the outlined\ncapital program.\n Electric Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues(1,2) $ 121.2 $ 112.4 7.8 %\n Operating expenses:\n Electric fuel and purchased power(1) 46.1 43.7 5.5 %\n Operation and maintenance 28.9 28.6 1.0 %\n Depreciation and amortization 19.6 17.2 14.0 %\n Taxes, other than income 5.5 4.8 14.6 %\n Total operating expenses 100.1 94.3 6.2 %\n Operating income 21.1 18.1 16.6 %\n Other income .4 1.0 (60.0) %\n Interest expense 11.9 7.9 50.6 %\n Income before income taxes 9.6 11.2 (14.3) %\n Income tax benefit(2) (4.9) (3.8) 28.9 %\n Net income $ 14.5 $ 15.0 (3.3) %\n\n Operating Statistics Three Months Ended\n March 31,\n 2026 2025\n Revenues (millions)(1,2)\n Retail sales:\n Residential $ 39.1 $ 38.2\n Commercial(3) 46.9 45.2\n Industrial 9.9 8.8\n Other 2.0 1.7\n 97.9 93.9\n Other 23.3 18.5\n $ 121.2 $ 112.4\n Volumes (million kWh)\n Retail sales:\n Residential 332.0 370.7\n Commercial(3) 741.9 723.9\n Industrial 120.7 116.7\n Other 19.2 20.2\n 1,213.8 1,231.5\n Average cost of electric fuel and purchased $ .028 $ .027\n power per kWh\n The previous tables reflect items that are passed through to customers\n resulting in minimal impact to earnings. These items include:\n\n(1 )Electric fuel and purchased power costs, which impact both\n operating revenues and electric fuel and purchased power expense\n\n(2 )Production tax credits, which impact income tax benefit and\n operating revenues\n\n(3 )Commercial includes the impact from data centers\n\nThe electric business reported net income of $14.5 million in the first\nquarter of 2026, compared to $15.0 million for the same period in 2025. This\ndecrease was largely the result of higher interest expense associated with\ndebt issuances for recent capital investments including Badger Wind Farm.\nLower retail sales volumes due to warmer weather and higher depreciation\nexpense, primarily Badger Wind Farm, further drove the decrease. Higher retail\nrevenues, primarily from recovery mechanisms associated with renewable\ninvestments including Badger Wind Farm, largely offset the decrease.\n Natural Gas Distribution Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues(1,2,3) $ 462.5 $ 539.3 (14.2) %\n Operating expenses:\n Purchased natural gas sold(1) 273.8 350.5 (21.9) %\n Operation and maintenance(2) 65.2 63.6 2.5 %\n Depreciation and amortization 26.4 26.1 1.1 %\n Taxes, other than income(3) 26.5 30.6 (13.4) %\n Total operating expenses 391.9 470.8 (16.8) %\n Operating income 70.6 68.5 3.1 %\n Other income 2.3 3.3 (30.3) %\n Interest expense 16.3 14.8 10.1 %\n Income before income taxes 56.6 57.0 (0.7) %\n Income tax expense 12.4 12.3 0.8 %\n Net income $ 44.2 $ 44.7 (1.1) %\n\n Operating Statistics Three Months Ended\n March 31,\n 2026 2025\n Revenues (millions)(1,2,3)\n Retail Sales:\n Residential $ 259.5 $ 291.6\n Commercial 150.2 189.6\n Industrial 13.4 15.7\n 423.1 496.9\n Transportation and other 39.4 42.4\n $ 462.5 $ 539.3\n Volumes (MMdk)\n Retail sales:\n Residential 26.5 31.8\n Commercial 18.6 21.9\n Industrial 1.5 1.7\n 46.6 55.4\n Transportation sales:\n Commercial .6 .8\n Industrial 38.9 48.4\n 39.5 49.2\n Total throughput 86.1 104.6\n Average cost of natural gas per dk $ 5.87 $ 6.33\n The previous tables reflect items that are passed through to customers\n resulting in minimal impact to earnings. These items include:\n\n(1 )Natural gas costs, which impact operating revenues and purchased\n natural gas sold.\n\n(2 )Conservation, which impacts operating revenues and operation and\n maintenance expense.\n\n(3 )Revenue-based taxes that impact both operating revenues and taxes,\n other than income.\n\nThe natural gas distribution business reported net income of $44.2 million in\nthe first quarter of 2026, compared to $44.7 million for the same period in\n2025. The decrease was largely the result of lower retail sales volumes due to\nwarmer weather. Lower electric generation transportation volumes driven by\nwarmer weather, higher operation and maintenance expense, primarily\npayroll-related expense and contract services, and higher interest expense\nfurther drove the decrease. The decrease was largely offset by higher retail\nsales revenue due to rate relief in Washington, Idaho, Montana and Wyoming.\n Pipeline Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues $ 57.1 $ 56.7 .7 %\n Operating expenses:\n Operation and maintenance 20.8 19.3 7.8 %\n Depreciation and amortization 8.2 8.0 2.5 %\n Taxes, other than income 3.8 3.3 15.2 %\n Total operating expenses 32.8 30.6 7.2 %\n Operating income 24.3 26.1 (6.9) %\n Other income (expense) (.3) .4 (175.0) %\n Interest expense 4.0 4.2 (4.8) %\n Income before income taxes 20.0 22.3 (10.3) %\n Income tax expense 4.7 5.1 (7.8) %\n Net income $ 15.3 $ 17.2 (11.0) %\n\n Operating Statistics Three Months Ended\n March 31,\n 2026 2025\n Transportation volumes (MMdk) 143.2 143.5\n Customer natural gas storage balance (MMdk):\n Beginning of period 37.6 44.1\n Net withdrawal (10.3) (22.0)\n End of period 27.3 22.1\n\nThe pipeline business reported net income of $15.3 million in the first\nquarter of 2026, compared to $17.2 million for the same period in 2025. The\nearnings decrease was driven by lower interruptible natural gas storage\nwithdrawals. Higher operation and maintenance expense primarily attributable\nto higher materials and payroll-related costs also contributed, as well as\nhigher Montana property tax accruals. The decrease was partially offset by\ncontinued strong customer demand for short-term natural gas transportation\ncontracts, as well as impacts from a growth project placed in service in 2025\nand a contracted volume increase associated with a previously constructed\ngrowth project.\n Other\n Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues $ .2 $ .2 — %\n Operating expenses:\n Operation and maintenance .5 .1 400.0 %\n Total operating expenses .5 .1 400.0 %\n Operating income (loss) (.3) .1 (400.0) %\n Other income 1.1 1.4 (21.4) %\n Interest expense 1.4 1.0 40.0 %\n Income (loss) before income taxes (.6) .5 (220.0) %\n Income tax benefit (7.5) (5.1) 47.1 %\n Income from continuing operations 6.9 5.6 23.2 %\n Discontinued operations, net of tax (.1) (.5) (80.0) %\n Net income $ 6.8 $ 5.1 33.3 %\n\nFor the first quarter of 2026 Other reported net income of $6.8 million\ncompared to net income of $5.1 million for the same period in 2025. The\nincrease was primarily due to income tax adjustments related to the company's\nannualized estimated tax rate. Partially offsetting the increase was higher\noperation and maintenance expense.\n\nOther includes the activities of the captive insurer which insures various\ntypes of risks of the company's subsidiaries. Also included in Other is\ngeneral and administrative costs and interest expense previously allocated to\nthe company's former businesses that did not meet the criteria for\ndiscontinued operations. Discontinued operations includes certain costs\nassociated with legacy business activities.\n Other Financial Data\n March 31,\n 2026 2025\n (In millions, except per share amounts)\n (Unaudited)\n Book value per common share $ 13.89 $ 13.42\n Market price per common share $ 20.72 $ 16.91\n Market value as a percent of book value 149.2 % 126.0 %\n Total assets $ 7,684 $ 6,961\n Total equity $ 2,904 $ 2,743\n Total debt $ 2,596 $ 2,194\n Capitalization ratios:\n Total equity 52.8 % 55.6 %\n Total debt 47.2 % 44.4 %\n 100.0 % 100.0 %\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/mdu-resources-reports-first-quarter-2026-results-progress-on-proposed-bakken-east-pipeline-302764723.html\n(https://www.prnewswire.com/news-releases/mdu-resources-reports-first-quarter-2026-results-progress-on-proposed-bakken-east-pipeline-302764723.html)\n\nSOURCE MDU Resources Group, Inc.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/435402/MDUR_logo_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn9tg4Xa","title":"MDU Resources Reports First Quarter 2026 Results; Progress on Proposed Bakken East Pipeline","author":"PR Newswire","ticker":"MDU","created":"2026-05-07T12:30:01.127Z","tickers":["MDU"],"exchange":"NYSE","article_body":"MDU Resources Reports First Quarter 2026 Results; Progress on Proposed Bakken East Pipeline\n\nPR Newswire\n\nBISMARCK, N.D., May 7, 2026\n\n * Strong open season interest for proposed Bakken East Pipeline Project\n * Consolidated net income of $80.8 million and diluted earnings per share of\n$0.39\n * Milder weather unfavorably impacted results by approximately $0.03 per share\n * 2026 guidance affirmed; earnings per share in the range of $0.93 to $1.00\nBISMARCK, N.D., May 7, 2026 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:\nMDU) today announced its financial results for the first quarter of 2026,\nhighlighting continued execution across its segments, despite milder weather,\nas well as positive outcomes from recent capital investments and meaningful\nprogress on its proposed Bakken East Pipeline Project.\n\n(https://mma.prnewswire.com/media/435402/MDUR_logo_Logo.html)\n\nDuring the quarter, a successful binding open season for the proposed Bakken\nEast Pipeline Project concluded with approximately 1.4 billion cubic feet per\nday of submitted interest. Of that total, approximately 40% has been signed\nunder precedent agreements with additional precedent agreements in active\nnegotiation. Based on submitted interest, we are now projecting total capital\ninvestment for the potential project in the range of $2.7 billion to $3.2\nbillion, which would be incremental to our current $3.1 billion capital\ninvestment forecast. The company has not reached a final investment decision\non this project and will continue to finalize precedent agreement negotiations\nbefore proceeding with a decision. As we look to finance a project of this\nsize and scope, we will evaluate all options including using our balance\nsheet, pursuing potential partnerships and various other options. We will\ncontinue to provide updates on this potential project as details develop.\n\nRecent investments, including Badger Wind Farm and the Minot Expansion\nProject, are delivering financial benefits and supporting customer demand,\nwhile emerging opportunities tied to data center growth across our service\nterritory reinforces the long-term value of the company's infrastructure\nportfolio.\n\n\"We delivered a strong first quarter when accounting for the impact of warmer\nweather across our service territory,\" said Nicole A. Kivisto, president and\nCEO of MDU Resources. \"Milder conditions reduced volumes, and normalization\nmechanisms in several of our states helped offset those impacts, demonstrating\nthe strength of our regulated businesses. At the same time, rate relief as\nwell as recent investments such as Badger Wind Farm and our pipeline\nexpansions contributed positive results. Additionally, we continue to see\nencouraging demand trends, including continued interest from data center\ndevelopment and strong interest in our proposed Bakken East Pipeline Project.\"\n\nThe following summarizes the company's first quarter results for the three\nmonths ended March 31:\n 2026 2025\n\n Net income (in millions) $ 80.8 $ 82.0\n Earnings per share, diluted $ .39 $ .40\n\n\"Our ability to deliver consistent results in a dynamic energy environment\nspeaks to the strength and operational discipline of our teams,\" Kivisto\nadded. \"Our employees remain focused on safety, reliability and\ncost-effectiveness, enabling us to deliver long-term value to our customers\nand stockholders.\"\n\nElectric Utility Segment\nBenefits from Badger Wind Farm recovery, more than offset by impacts from\nmilder weather\n\n * Lower volumes due to 10% to 30% milder temperatures across our service\nterritory\n * Higher interest expense and depreciation largely related to Badger Wind Farm\ninvestment\n * Higher retail revenue driven by renewable cost recovery and rate mechanisms\nassociated with Badger Wind Farm\nThe electric segment earned $14.5 million in the first quarter of 2026,\ncompared with $15.0 million in the first quarter of 2025. Badger Wind Farm was\nplaced in service Dec. 31, 2025, and this marked the first full quarter of\nbenefits from the investment, driving higher retail revenues and recovery.\nThese benefits were more than offset by milder weather, which drove lower\nretail sales volumes of approximately $2 million.\n\nRegulatory Update:\n\n * Montana: Interim electric rates approved for an annual increase of $10.4\nmillion; rates effective April 1, 2026, subject to refund; reflecting recovery\nof infrastructure investments, including Badger Wind Farm, and associated\ndepreciation and operation and maintenance expense\n * Wyoming: General rate case settlement approved for an annual increase of $5.8\nmillion; rates effective April 1, 2026; reflecting recovery of infrastructure\ninvestments as well as associated operation and maintenance expense\n * North Dakota: General rate case filing is anticipated later this year\nNatural Gas Distribution Segment\nLower volumes largely offset by weather normalization mechanisms and rate\nrelief\n\n * Lower retail and transportation volumes due to warmer weather\n * Continued customer growth of approximately 1.5% year-over-year\n * Rate relief across multiple jurisdictions\nThe natural gas distribution segment earned $44.2 million in the first quarter\nof 2026, compared with $44.7 million in the first quarter of 2025. Results\nreflect lower volumes driven by warmer weather, approximately a $5 million\nimpact, due to 10%-30% warmer temperatures across our service territory\ncompared to last year, including temperatures 20% higher in Idaho and 30%\nhigher in Montana. Weather normalization mechanisms in certain states helped\noffset the warmer temperatures. Additionally, the lower volumes were largely\noffset by rate relief in Washington, Idaho, Montana and Wyoming.\n\nRegulatory Update:\n\n * Oregon: Pending general rate case filed Nov. 25, 2025, requesting an annual\nincrease of $16.4 million; reflecting rate base growth, along with associated\ndepreciation and increased operation and maintenance expense\n * Idaho: General rate case settlement approved for an annual increase of $13.0\nmillion; rates effective Jan. 1, 2026\n * Washington: Year two rates under the approved multi-year rate plan,\nrepresenting an annual increase of $10.8 million, effective March 1, 2026; in\nApril 2026, filed a revision to decrease revenue by $2.1 million annually due\nto forecasted plant that was not placed in service as of Dec. 31, 2025\n* The company anticipates filing a multi-year general rate case this year\n * Wyoming: System Safety and Integrity Rider filed Aug. 15, 2025; hearing held\nApril 9, 2026, pending before the Wyoming Public Service Commission\n * Minnesota: General rate case filing is anticipated later this year\nPipeline Segment\nLower storage-related revenue partially offset by contributions from recent\nexpansion projects placed in service\n\n * Decreased interruptible storage withdrawals\n * Increased operation and maintenance expense\n * Positive results from recent projects placed in service\nThe pipeline segment earned $15.3 million in the first quarter of 2026,\ncompared to a record $17.2 million in the first quarter of 2025. Results were\nimpacted by lower interruptible natural gas storage withdrawals, along with\nhigher operation and maintenance expense primarily due to increased material\ncosts and payroll-related expenses. Higher Montana property tax accruals also\ncontributed to the year-over-year decrease.\n\nThese impacts were partially offset by continued strong customer demand for\nshort-term natural gas transportation contracts as well as contributions from\na growth project recently placed in service.\n\nPipeline Segment Strategic Projects Updates:\n\n * Proposed Bakken East Pipeline Project: While a final investment decision has\nnot yet been made, customer interest and ongoing commercial discussions\ndemonstrate continued demand for additional takeaway capacity from the Bakken\nregion. Included in the 1.4 billion cubic feet per day of interest is a firm\ncapacity commitment of $50 million annually for ten years from the State of\nNorth Dakota, reinforcing the strategic importance of the project to regional\nenergy infrastructure and economic development. The company continues to\nadvance the project in a disciplined manner, navigating evolving market\ndynamics that include regional data center development considerations, while\nmaintaining a focus on long-term value creation and capital efficiency. Phase\nOne of the proposed project is targeted to be complete in November 2029, with\nPhase Two targeted to be complete in November 2030.\n * Line Section 32 Expansion Project: This project will provide natural gas\ntransportation service to a new electric generation facility in northwest\nNorth Dakota. A FERC Section 7(c) application was filed in March 2026, marking\nan important regulatory milestone in the project's development. The project is\ndependent on regulatory approvals with construction targeted to be complete in\nlate 2028.\n * Minot Industrial Project: This proposed project could consist of an\napproximately 90-mile pipeline from Tioga, North Dakota to Minot, North Dakota\nand ancillary facilities to support anticipated industrial demand in the area.\nAn agreement is in place to provide cost recovery protections during the\ndevelopment phase, with the agreement currently extended through late 2026.\nEquity and Funding Plan\nIn connection with the company's December 2025, follow-on public offering, a\nportion of the related forward sale agreements were settled on March 13, 2026,\nresulting in the issuance of 4.3 million shares of new common stock for\nproceeds of $81.3 million. The company had previously stated it expects to\nissue between $150 million to $175 million of equity in 2026, and between $100\nmillion to $125 million in 2027, to support near-term capital expenditures for\ngrowth.\n\nGuidance\nFor 2026, MDU Resources expects earnings per share to be in the range of $0.93\nto $1.00.\n\nThe expected 2026 results are based on these assumptions:\n\n * Normal weather, economic and operating conditions for the remainder of the\nyear\n * Continued growth in utility customers at 1%–2% annually\n * Successful execution of approved capital investment and rate recovery plans\n * Continued execution of its debt and equity financing plans\nThe company's long-term EPS guidance remains unchanged with an expected growth\nrate of 6%–8%.\n\nConference Call\nMDU Resources will webcast its first quarter 2026 earnings conference call\ntoday at 2 p.m. ET. The webcast can be accessed at www.mdu.com\n(http://www.mdu.com) under the \"Investors\" heading. Select \"Events &\nPresentations,\" and click on \"Q1 2026 Earnings Conference Call.\" After the\nwebcast, a replay will be available at the same location.\n\nAbout MDU Resources Group, Inc.\nMDU Resources Group, Inc., a member of the S&P SmallCap 600 index,\ndelivers safe, reliable, cost-effective and environmentally responsible\nelectric utility and natural gas distribution services to more than 1.2\nmillion customers across the Pacific Northwest and Midwest. In addition to its\nutility operations, the company's pipeline business operates a more than\n3,800-mile natural gas pipeline network and storage system, ensuring reliable\nenergy delivery across the Northern Plains. With a legacy spanning over a\ncentury, MDU Resources remains focused on energizing lives for a better\ntomorrow. For more information about MDU Resources, visit www.mdu.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4682643-1&h=1739749436&u=https%3A%2F%2Fwww.mdu.com%2F&a=www.mdu.com)\nor contact the investor relations department at investor@mduresources.com\n(mailto:investor@mduresources.com) .\n\nInvestor Contact: Brent Miller, treasurer, 701-530-1730\nMedia Contact: Byron Pfordte, director of integrated communications,\n208-377-6050\n\nCautionary Note Regarding Forward-Looking Statements\nThis news release contains forward-looking statements within the meaning of\nthe federal securities laws. Other than statements of historical facts, all\nstatements which address activities, events or developments that the company\nanticipates will or may occur in the future are based on underlying\nassumptions (many of which are based, in turn, upon further assumptions),\nincluding but not limited to, statements identified by the words\n\"anticipates,\" \"estimates,\" \"expects,\" \"intends,\" \"plans,\" and \"predicts,\" in\neach case related to such things as growth estimates, stockholder value\ncreation, the company's \"CORE\" strategy, capital expenditures, financial\nguidance, trends, objectives, goals, dividend payout ratio targets, earnings\nper share growth targets, customer rates, regulatory approvals,\nsustainability, strategies and other such matters, are forward-looking\nstatements. These forward-looking statements are based on many assumptions and\nfactors, which are detailed in the company's filings with the U.S. Securities\nand Exchange Commission.\n\nWhile made in good faith, these forward-looking statements are based largely\non the company's expectations and judgments and are subject to a number of\nrisks and uncertainties, many of which are unforeseeable and beyond the\ncompany's control. For additional discussion regarding risks and uncertainties\nthat may affect forward-looking statements, see \"Risk Factors\" disclosed in\nthe company's most recent Annual Report on Form 10-K, and subsequent filings.\nAny changes in such assumptions or factors could produce significantly\ndifferent results. Undue reliance should not be placed on forward-looking\nstatements, which speak only as of the date they are made. Except as required\nby applicable law, the company undertakes no obligation to update the\nforward-looking statements, whether as a result of new information, future\nevents or otherwise.\n Consolidated Statements of Income\n Three Months Ended\n March 31,\n 2026 2025\n (In millions, except per\n share amounts)\n (Unaudited)\n Operating revenues $ 606.0 $ 674.8\n Operating expenses:\n Purchased natural gas sold 239.4 317.2\n Electric fuel and purchased power 46.1 43.7\n Operation and maintenance 114.8 111.1\n Depreciation and amortization 54.2 51.3\n Taxes, other than income 35.8 38.7\n Total operating expenses 490.3 562.0\n Operating income 115.7 112.8\n Other income (expense) 2.6 5.0\n Interest expense 32.7 26.8\n Income before income taxes 85.6 91.0\n Income tax expense 4.7 8.5\n Income from continuing operations 80.9 82.5\n Discontinued operations, net of tax (.1) (.5)\n Net income $ 80.8 $ 82.0\n\n Earnings per share – basic:\n Income from continuing operations $ .39 $ .40\n Discontinued operations, net of tax — —\n Earnings per share – basic $ .39 $ .40\n Earnings per share – diluted:\n Income from continuing operations $ .39 $ .40\n Discontinued operations, net of tax — —\n Earnings per share – diluted $ .39 $ .40\n Weighted average common shares outstanding – basic 205.4 204.1\n Weighted average common shares outstanding – diluted 207.0 205.0\n\n Selected Cash Flows Information\n Three Months Ended\n March 31,\n 2026 2025\n (In millions)\n Net cash provided by operating activities $ 149.2 $ 217.5\n Net cash used in investing activities (91.2) (94.8)\n Net cash used in financing activities (32.9) (130.1)\n Increase (decrease) in cash, cash equivalents and restricted cash 25.1 (7.4)\n Cash, cash equivalents and restricted cash - beginning of year 28.2 66.9\n Cash, cash equivalents and restricted cash - end of period $ 53.3 $ 59.5\n\n Capital Expenditures\n Business Line 2026 2027 2028 2029 2030 2026-2030\n Estimated Estimated Estimated Estimated Estimated Total\n Estimated\n (In millions)\n Electric $ 144 $ 309 $ 250 $ 184 $ 210 $ 1,097\n Natural gas distribution 361 295 240 254 223 1,373\n Pipeline 60 70 181 282 50 643\n Total capital expenditures(1) $ 565 $ 674 $ 671 $ 720 $ 483 $ 3,113\n\n (1) Excludes Other category\n Note: Total capital expenditures is presented on a net basis\n\nThe capital program is subject to continued review and modification by the\ncompany. Actual expenditures may vary from estimates. Investment in the\npotential Bakken East Pipeline project would be incremental to the outlined\ncapital program.\n Electric Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues(1,2) $ 121.2 $ 112.4 7.8 %\n Operating expenses:\n Electric fuel and purchased power(1) 46.1 43.7 5.5 %\n Operation and maintenance 28.9 28.6 1.0 %\n Depreciation and amortization 19.6 17.2 14.0 %\n Taxes, other than income 5.5 4.8 14.6 %\n Total operating expenses 100.1 94.3 6.2 %\n Operating income 21.1 18.1 16.6 %\n Other income .4 1.0 (60.0) %\n Interest expense 11.9 7.9 50.6 %\n Income before income taxes 9.6 11.2 (14.3) %\n Income tax benefit(2) (4.9) (3.8) 28.9 %\n Net income $ 14.5 $ 15.0 (3.3) %\n\n Operating Statistics Three Months Ended\n March 31,\n 2026 2025\n Revenues (millions)(1,2)\n Retail sales:\n Residential $ 39.1 $ 38.2\n Commercial(3) 46.9 45.2\n Industrial 9.9 8.8\n Other 2.0 1.7\n 97.9 93.9\n Other 23.3 18.5\n $ 121.2 $ 112.4\n Volumes (million kWh)\n Retail sales:\n Residential 332.0 370.7\n Commercial(3) 741.9 723.9\n Industrial 120.7 116.7\n Other 19.2 20.2\n 1,213.8 1,231.5\n Average cost of electric fuel and purchased $ .028 $ .027\n power per kWh\n The previous tables reflect items that are passed through to customers\n resulting in minimal impact to earnings. These items include:\n\n(1 )Electric fuel and purchased power costs, which impact both\n operating revenues and electric fuel and purchased power expense\n\n(2 )Production tax credits, which impact income tax benefit and\n operating revenues\n\n(3 )Commercial includes the impact from data centers\n\nThe electric business reported net income of $14.5 million in the first\nquarter of 2026, compared to $15.0 million for the same period in 2025. This\ndecrease was largely the result of higher interest expense associated with\ndebt issuances for recent capital investments including Badger Wind Farm.\nLower retail sales volumes due to warmer weather and higher depreciation\nexpense, primarily Badger Wind Farm, further drove the decrease. Higher retail\nrevenues, primarily from recovery mechanisms associated with renewable\ninvestments including Badger Wind Farm, largely offset the decrease.\n Natural Gas Distribution Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues(1,2,3) $ 462.5 $ 539.3 (14.2) %\n Operating expenses:\n Purchased natural gas sold(1) 273.8 350.5 (21.9) %\n Operation and maintenance(2) 65.2 63.6 2.5 %\n Depreciation and amortization 26.4 26.1 1.1 %\n Taxes, other than income(3) 26.5 30.6 (13.4) %\n Total operating expenses 391.9 470.8 (16.8) %\n Operating income 70.6 68.5 3.1 %\n Other income 2.3 3.3 (30.3) %\n Interest expense 16.3 14.8 10.1 %\n Income before income taxes 56.6 57.0 (0.7) %\n Income tax expense 12.4 12.3 0.8 %\n Net income $ 44.2 $ 44.7 (1.1) %\n\n Operating Statistics Three Months Ended\n March 31,\n 2026 2025\n Revenues (millions)(1,2,3)\n Retail Sales:\n Residential $ 259.5 $ 291.6\n Commercial 150.2 189.6\n Industrial 13.4 15.7\n 423.1 496.9\n Transportation and other 39.4 42.4\n $ 462.5 $ 539.3\n Volumes (MMdk)\n Retail sales:\n Residential 26.5 31.8\n Commercial 18.6 21.9\n Industrial 1.5 1.7\n 46.6 55.4\n Transportation sales:\n Commercial .6 .8\n Industrial 38.9 48.4\n 39.5 49.2\n Total throughput 86.1 104.6\n Average cost of natural gas per dk $ 5.87 $ 6.33\n The previous tables reflect items that are passed through to customers\n resulting in minimal impact to earnings. These items include:\n\n(1 )Natural gas costs, which impact operating revenues and purchased\n natural gas sold.\n\n(2 )Conservation, which impacts operating revenues and operation and\n maintenance expense.\n\n(3 )Revenue-based taxes that impact both operating revenues and taxes,\n other than income.\n\nThe natural gas distribution business reported net income of $44.2 million in\nthe first quarter of 2026, compared to $44.7 million for the same period in\n2025. The decrease was largely the result of lower retail sales volumes due to\nwarmer weather. Lower electric generation transportation volumes driven by\nwarmer weather, higher operation and maintenance expense, primarily\npayroll-related expense and contract services, and higher interest expense\nfurther drove the decrease. The decrease was largely offset by higher retail\nsales revenue due to rate relief in Washington, Idaho, Montana and Wyoming.\n Pipeline Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues $ 57.1 $ 56.7 .7 %\n Operating expenses:\n Operation and maintenance 20.8 19.3 7.8 %\n Depreciation and amortization 8.2 8.0 2.5 %\n Taxes, other than income 3.8 3.3 15.2 %\n Total operating expenses 32.8 30.6 7.2 %\n Operating income 24.3 26.1 (6.9) %\n Other income (expense) (.3) .4 (175.0) %\n Interest expense 4.0 4.2 (4.8) %\n Income before income taxes 20.0 22.3 (10.3) %\n Income tax expense 4.7 5.1 (7.8) %\n Net income $ 15.3 $ 17.2 (11.0) %\n\n Operating Statistics Three Months Ended\n March 31,\n 2026 2025\n Transportation volumes (MMdk) 143.2 143.5\n Customer natural gas storage balance (MMdk):\n Beginning of period 37.6 44.1\n Net withdrawal (10.3) (22.0)\n End of period 27.3 22.1\n\nThe pipeline business reported net income of $15.3 million in the first\nquarter of 2026, compared to $17.2 million for the same period in 2025. The\nearnings decrease was driven by lower interruptible natural gas storage\nwithdrawals. Higher operation and maintenance expense primarily attributable\nto higher materials and payroll-related costs also contributed, as well as\nhigher Montana property tax accruals. The decrease was partially offset by\ncontinued strong customer demand for short-term natural gas transportation\ncontracts, as well as impacts from a growth project placed in service in 2025\nand a contracted volume increase associated with a previously constructed\ngrowth project.\n Other\n Three Months Ended\n March 31,\n 2026 2025 Variance\n (In millions)\n Operating revenues $ .2 $ .2 — %\n Operating expenses:\n Operation and maintenance .5 .1 400.0 %\n Total operating expenses .5 .1 400.0 %\n Operating income (loss) (.3) .1 (400.0) %\n Other income 1.1 1.4 (21.4) %\n Interest expense 1.4 1.0 40.0 %\n Income (loss) before income taxes (.6) .5 (220.0) %\n Income tax benefit (7.5) (5.1) 47.1 %\n Income from continuing operations 6.9 5.6 23.2 %\n Discontinued operations, net of tax (.1) (.5) (80.0) %\n Net income $ 6.8 $ 5.1 33.3 %\n\nFor the first quarter of 2026 Other reported net income of $6.8 million\ncompared to net income of $5.1 million for the same period in 2025. The\nincrease was primarily due to income tax adjustments related to the company's\nannualized estimated tax rate. Partially offsetting the increase was higher\noperation and maintenance expense.\n\nOther includes the activities of the captive insurer which insures various\ntypes of risks of the company's subsidiaries. Also included in Other is\ngeneral and administrative costs and interest expense previously allocated to\nthe company's former businesses that did not meet the criteria for\ndiscontinued operations. Discontinued operations includes certain costs\nassociated with legacy business activities.\n Other Financial Data\n March 31,\n 2026 2025\n (In millions, except per share amounts)\n (Unaudited)\n Book value per common share $ 13.89 $ 13.42\n Market price per common share $ 20.72 $ 16.91\n Market value as a percent of book value 149.2 % 126.0 %\n Total assets $ 7,684 $ 6,961\n Total equity $ 2,904 $ 2,743\n Total debt $ 2,596 $ 2,194\n Capitalization ratios:\n Total equity 52.8 % 55.6 %\n Total debt 47.2 % 44.4 %\n 100.0 % 100.0 %\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/mdu-resources-reports-first-quarter-2026-results-progress-on-proposed-bakken-east-pipeline-302764723.html\n(https://www.prnewswire.com/news-releases/mdu-resources-reports-first-quarter-2026-results-progress-on-proposed-bakken-east-pipeline-302764723.html)\n\nSOURCE MDU Resources Group, Inc.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/435402/MDUR_logo_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-05-07T12:30:01.175596655Z","server_sent_at_ms":1778157001175},"received_at":"2026-05-07T12:30:01.296Z","source_url":null},"analysis":null,"durationMs":null,"modelName":null}}