MDU Resources Reports Third Quarter 2026 Results; Reaffirms Guidance

Electric utility earnings increased, while wider natural gas distribution losses and lower pipeline earnings weighed on quarterly results.

Rhea-AI Summary

MDU Resources Group (NYSE: MDU) reported third-quarter 2026 net income of $14.0 million, down from the same quarter last year. Diluted earnings per share fell to $0.07 from $0.09, while revenue rose to $347.8 million from $315.1 million. Electric utility earnings increased to $26.5 million, but natural gas distribution losses widened and pipeline earnings declined.

The company reaffirmed 2026 EPS guidance of $0.93–$1.00 and its long-term EPS growth objective of 6%–8%. Its board approved proceeding with the Bakken East Pipeline on Sept. 30, 2026. Estimated investment is now $2.8 billion–$3.1 billion, versus $2.7 billion–$3.2 billion previously. The project remains subject to regulatory approval; first-phase completion is expected in late 2029, with second-phase completion targeted for late 2030. Nine-month operating cash flow declined to $347.6 million from $392.8 million.

26 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 25 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointBakken East Pipeline received a positive final investment decision based on secured customer commitments.
• Moderate pointThird-quarter revenue increased to $347.8 million from $315.1 million in 2025.
• Moderate pointOperating income rose to $47.6 million from $39.8 million quarterly; nine-month income increased to $211.2 million from $183.0 million.
• Moderate pointElectric utility earnings increased to $26.5 million from $21.5 million in third-quarter 2025.
• Moderate pointRetail electric sales increased 9.3%; data center sales increased 18.4% versus third-quarter 2025.
• Moderate pointNorth Dakota interim electric rates reflecting a $26.3 million annual increase became effective Sept. 1, 2026.
• Moderate pointNatural gas retail volumes increased 7.1%; customer numbers increased 1.5% year over year.
• Moderate pointIdaho final gas rates providing a $13.0 million annual revenue increase took effect Jan. 1, 2026.
• Moderate pointOregon final gas rates providing a $12.2 million annual revenue increase took effect Oct. 31, 2026.
• Moderate pointNine-month purchased natural gas expense decreased to $391.5 million from $471.7 million.

16 minor points

• Minor pointNine-month net income increased to $116.1 million from $114.1 million, although diluted EPS fell to $0.55 from $0.56.
• Minor pointNine-month adjusted net income rose to $119.4 million from $114.1 million; adjusted EPS increased to $0.57 from $0.56.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 EPS guidance reaffirmed at $0.93–$1.00; the company's long-term EPS growth objective remains 6%–8%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Bakken East investment estimated at $2.8 billion–$3.1 billion, narrowed from $2.7 billion–$3.2 billion.
• Minor point. Forward-looking: it has not happened yet and may not happen.Bakken East construction expected during 2028–2030; first-phase completion expected late 2029, second-phase completion targeted late 2030.
• Minor pointNew electric rates contributed $7.1 million in additional quarterly revenue.
• Minor pointBadger Wind Farm contributed $3.2 million in quarterly earnings.
• Minor pointMontana interim electric rates reflecting a $10.4 million annual increase have been effective since April 1, 2026.
• Minor pointWyoming final electric rates reflecting a $5.8 million annual increase became effective April 1, 2026.
• Minor pointNatural gas distribution new rates contributed $6.5 million in additional quarterly revenue.
• Minor pointPipeline demand revenue benefited from short-term contracts, the Minot Expansion and Line Section 22 Expansion.
• Minor point. Forward-looking: it has not happened yet and may not happen.Line Section 32 Expansion continues to target a late-2028 in-service date.
• Minor pointPotential Minot Industrial Project development continues, with development-phase cost recovery protections extended through late 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 estimated net capital expenditures total $594 million, excluding Other: electric $102 million, gas distribution $327 million, pipeline $165 million.
• Minor pointNine-month taxes other than income decreased to $83.4 million from $85.7 million.
• Minor pointNine-month income tax expense decreased to $10.3 million from $11.6 million.

Negative

• Moderate pointThird-quarter net income fell to $14.0 million from $18.4 million; diluted EPS declined to $0.07 from $0.09.
• Moderate pointNine-month operating cash flow declined to $347.6 million from $392.8 million.
• Moderate pointCash, cash equivalents and restricted cash ended September at $27.6 million versus $75.9 million a year earlier.
• Moderate pointPipeline earnings declined to $13.1 million from $16.8 million in third-quarter 2025.
• Moderate pointOperation and maintenance expense rose to $115.7 million from $101.8 million quarterly; nine-month expense reached $344.6 million versus $325.7 million.
• Moderate pointInterest expense rose to $32.6 million from $26.4 million quarterly; nine-month expense reached $96.8 million versus $78.6 million.
• Moderate pointOther income fell to $1.4 million from $7.3 million quarterly; nine-month income declined to $10.2 million from $22.2 million.
• Moderate pointBakken East remains subject to regulatory approval; financing structures are still being evaluated.
• Moderate pointNorth Dakota electric rate case seeking $34.5 million annually remains pending; interim rates are subject to refund.
• Moderate pointWashington gas rate case seeking $25.1 million in year one and $18.1 million in year two remains pending.
• Moderate pointWBI Energy's $31 million annual rate request remains unresolved; Dec. 1, 2026 rates are subject to refund.

14 minor points

• Minor pointThird-quarter adjusted net income fell to $16.6 million from $18.4 million; adjusted EPS declined to $0.08 from $0.09.
• Minor pointNine-month revenue declined to $1,329.0 million from $1,341.1 million.
• Minor pointNatural gas distribution seasonal loss widened to $20.7 million from $18.2 million in third-quarter 2025.
• Minor pointKnott Landfill development discontinuation resulted in a $2.1 million net-of-tax loss.
• Minor pointNatural gas distribution results also faced higher payroll-related costs and lower returns on nonqualified benefit plan investments.
• Minor pointBakken East advisory costs did not qualify for capitalization and were expensed during the quarter.
• Minor pointPipeline activity weakened through lower interruptible transportation volumes and lower storage-related activity.
• Minor pointElectric fuel and purchased power expense rose to $48.6 million from $41.2 million quarterly; $133.3 million versus $119.8 million year-to-date.
• Minor pointDepreciation and amortization rose to $55.6 million from $52.1 million quarterly; $165.0 million versus $155.2 million year-to-date.
• Minor pointNine-month continuing-operations income declined to $114.3 million from $115.0 million.
• Minor pointDiluted weighted-average shares increased to 212.7 million from 205.3 million quarterly; 210.5 million versus 205.2 million year-to-date.
• Minor pointMontana electric settlement providing $10.0 million annually awaits approval; interim rates remain subject to refund.
• Minor pointMinnesota gas rate request seeks $4.5 million annually; a $3.9 million interim increase requires approval for Jan. 1, 2027.
• Minor pointLine Section 32 Expansion's late-2028 target remains subject to regulatory approvals.

News Explained

For Bakken East, MDU Resources is evaluating financing structures, including possible financial or strategic investor participation, and expects WBI Energy to retain majority ownership and operational control.

Key Figures

Net income: $14.0 million vs. $18.4 million Diluted EPS: $0.07 vs. $0.09 Adjusted EPS: $0.08 vs. $0.09 +5 more

Net income

$14.0 million vs. $18.4 million

Third quarter 2026 vs. third quarter 2025

Diluted EPS

$0.07 vs. $0.09

Third quarter 2026 vs. third quarter 2025

Adjusted EPS

$0.08 vs. $0.09

Third quarter 2026 vs. third quarter 2025

2026 EPS guidance

$0.93–$1.00

Reaffirmed

Bakken East estimated capital investment

$2.8 billion–$3.1 billion

Revised from $2.7 billion–$3.2 billion

Bakken East initial capacity

1.4 billion cubic feet per day

Pipeline project design

Electric utility segment earnings

$26.5 million vs. $21.5 million

Third quarter 2026 vs. third quarter 2025; increase of 23.6%

Pipeline segment earnings

$13.1 million vs. $16.8 million

Third quarter 2026 vs. third quarter 2025

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   Q2 earnings results

   24h Move

   +3.7%

   Net income and diluted EPS rose year over year; 2026 guidance was reaffirmed.

2. May 07

   Q1 earnings results

   24h Move

   +0.7%

   Reported first-quarter earnings, reaffirmed EPS guidance, and advanced Bakken East project planning.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

final investment decision, ferc section 7(c), non-gaap financial measures

3 terms

final investment decision financial

"the company's board of directors made a positive final investment decision"

A final investment decision is the point at which a person or organization chooses to move forward with a particular project or purchase after reviewing all the necessary information and options. It is like deciding to buy a house after considering all the costs, benefits, and alternatives. This decision is important because it determines whether and when the investment will be made, impacting future financial plans and outcomes.

ferc section 7(c) regulatory

"The FERC Section 7(c) application for the project is anticipated"

A FERC Section 7(c) certificate is a regulatory approval under the Natural Gas Act that lets a company build and operate interstate natural gas pipeline or storage facilities. Think of it like a construction permit plus a right-to-operate issued by a federal regulator; it matters to investors because getting or failing to get the certificate can determine whether a gas infrastructure project can proceed, affect projected revenues, timelines, and regulatory risk.

non-gaap financial measures financial

"Adjusted net income and adjusted earnings per share are non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

• Consolidated net income of $14.0 million, compared with $18.4 million in the same quarter
  last year
• Earnings per share of $0.07, compared with $0.09 in the third quarter of 2025
• Adjusted earnings per share of $0.08, compared with $0.09 in the third quarter of 2025
• 2026 guidance reaffirmed; earnings per share in the range of $0.93 to $1.00
• Positive final investment decision reached on Bakken East Pipeline

BISMARCK, N.D., Nov. 5, 2026 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) today announced its financial results for the third quarter of 2026, highlighting stronger electric utility earnings and advancement of significant strategic growth initiatives designed to serve growing energy demand and create long-term value.

"We continued to execute our CORE strategy during the third quarter, with strong performance from our electric utility while advancing significant investments that are designed to support growing energy needs and long-term value creation," said Nicole A. Kivisto, president and CEO of MDU Resources. "Electric utility earnings increased, benefiting from new rates, Badger Wind Farm and higher retail sales volumes. Results at our natural gas distribution and pipeline businesses were affected by several items during the quarter, including the decision to discontinue development of the Knott Landfill renewable natural gas project and advisory costs associated with Bakken East. At the same time, we reached a significant milestone with our positive final investment decision on Bakken East, moving forward a project that we believe positions us well for long-term growth."

The following summarizes the company's results for the three and nine months ended Sept. 30:

	Three Months Ended Sept. 30:		Nine Months Ended Sept. 30:
	2026	2025	2026	2025
	(In millions, except per share amounts)
Net income	$         14.0	$         18.4	$        116.1	$        114.1
Earnings per share, diluted	$           .07	$           .09	$           .55	$           .56
Adjusted net income1	$         16.6	$         18.4	$        119.4	$        114.1
Adjusted earnings per share1	$           .08	$           .09	$           .57	$           .56
1 Excludes costs associated with the discontinued development of the Knott Landfill renewable natural gas project as well as advisory costs associated with Bakken East. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Additional explanation is provided in the "Non-GAAP Financial Measures" section of this news release.

"Our employees are the foundation of our ability to safely and reliably serve customers while advancing these growth opportunities," Nicole A. Kivisto added. "They operate and maintain the systems that serve our customers while working to meet the evolving energy needs of our communities. That focus on providing safe, reliable, energy while responsibly managing costs remains central to how we continue to grow."

Bakken East Pipeline Update
MDU Resources reached an important milestone Sept. 30, 2026, when the company's board of directors made a positive final investment decision to proceed with WBI Energy's Bakken East Pipeline. The company has since narrowed the project's estimated capital investment range to $2.8 billion to $3.1 billion from the previous estimate of $2.7 billion to $3.2 billion.

The approximately 350-mile pipeline will extend from the Bakken region in western North Dakota to a location near Fargo in eastern North Dakota, creating a new pathway for Bakken natural gas to serve customers in central and eastern North Dakota. The company has finalized the pipeline design to include segments of 42-inch, 36-inch and 30-inch-diameter pipe, moving from west to east. The project is subject to regulatory approval and is being designed with an initial capacity of 1.4 billion cubic feet of natural gas per day with flexibility to accommodate anticipated future growth. The company is actively evaluating financing structures to fund the project, including potential participation of financial or strategic investors, while maintaining its expectation that WBI Energy will retain majority ownership and operational control.

For North Dakota, Bakken East represents a multibillion-dollar investment in infrastructure intended to support the state's continued economic development. By creating additional transportation capacity between western North Dakota's abundant natural gas supply and growing demand across the state, the project is designed to strengthen energy infrastructure that can support a range of industries, communities and economic activity well into the future. Project development continues to advance, including progress on materials procurement, human capital deployment and discussions with prospective construction contractors.

Construction is expected to occur during the 2028-2030 construction seasons, with the facilities placed in service in two phases. The first phase, from the Bakken to central North Dakota, is expected to be completed in late 2029. The second phase, extending to an existing WBI Energy compressor station near Mapleton, North Dakota, has a target completion date of late 2030. The project will include additional compression at two existing WBI Energy compressor stations and construction of four new compressor stations.

Electric Utility Segment
Implementation of new rates, Badger Wind Farm recovery and increased volumes contributed to increased earnings, compared to the same quarter in 2025

• New rates contributed $7.1 million in revenue for the quarter
• Badger Wind Farm contributed $3.2 million in earnings for the quarter
• Retail sales volumes increased 9.3%

The electric utility segment earned $26.5 million in the third quarter of 2026, an increase from $21.5 million in the third quarter of 2025, or 23.6%. The segment benefited from $7.1 million in additional revenue from new rates approved in North Dakota, Montana and Wyoming, $3.2 million in earnings from Badger Wind Farm and higher retail volumes across all customer classes.

Total retail electric sales increased 9.3%, reflecting growth across all customer classes. Sales to data center customers increased 18.4% compared with the same quarter in 2025.

Growing demand from large-load customers, including data centers, continues to provide opportunities for increased electric sales. MDU Resources' approach to serving these customers remains grounded in protecting existing customers and ensuring new growth creates value for the electric system and the communities it serves. The company follows the principle of cost causation, meaning the customer that creates a cost should pay that cost. Infrastructure and service costs that are specifically needed to serve large-load customers are assigned appropriately through contracts, tariffs and regulatory approvals. Benefits associated with these agreements may also flow back to customers through approved regulatory mechanisms.

Regulatory Update:

• North Dakota: The electric general rate case filed June 30, 2026, requested an annual revenue increase of $34.5 million. Interim rates reflecting an annual increase of $26.3 million, subject to refund, became effective Sept. 1, 2026, while the case remains pending.
• Montana: A settlement agreement reflecting a $10.0 million annual revenue increase has been filed and is pending approval by the Montana Public Service Commission. Interim rates reflecting an annual increase of $10.4 million have been in effect since April 1, 2026, subject to refund.
• Wyoming: Final electric rates reflecting an annual increase of $5.8 million became effective
  April 1, 2026.

Natural Gas Distribution Segment
New rates and higher retail sales volumes more than offset by higher operation and maintenance expense

• New rates contributed $6.5 million in additional revenue
• Retail sales volumes increased 7.1%
• Higher operating and maintenance expense, including higher payroll-related costs and a
  $2.1 million net of tax loss related to the discontinued Knott Landfill renewable natural gas project
• Customer growth of 1.5% year over year

The natural gas distribution segment recorded a seasonal net loss of $20.7 million in the third quarter of 2026, compared with a net loss of $18.2 million in the third quarter of 2025. Results benefited primarily from $6.5 million in new rates approved in Idaho and Washington as well as higher sales volumes. Retail sales volumes increased 7.1% across all customer classes, while the number of customers increased 1.5% compared with the prior year.

Benefits were more than offset by higher operation and maintenance expense, higher interest expense and lower returns on nonqualified benefit plan investments. Operation and maintenance expense included higher payroll-related costs and a $2.1 million net of tax loss related to Cascade Natural Gas Corporation's decision to discontinue development of the Knott Landfill renewable natural gas project in Bend, Oregon.

Regulatory Update:

• Washington: A multiyear natural gas rate case filed May 29, 2026, requests annual revenue increases of $25.1 million in year one and $18.1 million in year two. The case remains pending.
• Idaho: Final rates reflecting a $13.0 million annual revenue increase have been approved and in effect since Jan. 1, 2026.
• Oregon: A $12.2 million annual revenue increase has been approved, with final rates effective Oct. 31, 2026.
• Minnesota: Filed a natural gas rate case on Oct. 30, 2026, requesting an annual revenue increase of $4.5 million. An interim rate increase of $3.9 million over current rates was also filed, and if approved, will be implemented on Jan. 1, 2027.

Pipeline Segment
Higher operating and development-related costs impact third-quarter earnings

• Higher operation and maintenance expense, Bakken East advisory costs and lower interruptible transportation volumes and interruptible storage injections
• Higher demand revenue from short-term contracts
• Increased demand revenue associated with the Minot Expansion and Line Section 22 Expansion projects

The pipeline segment earned $13.1 million in the third quarter of 2026, compared with $16.8 million in the third quarter of 2025. Results were impacted by higher operation and maintenance expense as well as advisory costs related to the Bakken East Pipeline that did not qualify for capitalization and were expensed during the quarter. The segment was also affected by lower storage-related activity and lower interruptible transportation volumes. These effects were partially offset by increased customer demand for short-term natural gas transportation contracts and higher demand revenue associated with growth projects previously placed in service.

Strategic Project Updates:

• Bakken East Pipeline: MDU Resources reached a positive final investment decision on Sept. 30, 2026, to proceed with the project based on secured customer commitments and the anticipated strategic and economic benefits for North Dakota and the broader region. The FERC Section 7(c) application for the project is anticipated to be filed during the fourth quarter of 2026.
• Line Section 32 Expansion Project: The FERC Section 7(c) application was filed in March 2026 and noticed in April. The project continues to target a late-2028 in-service date, subject to regulatory approvals.
• Minot Industrial Project: Development activities continue for a potential project that could include approximately 90 miles of 20-inch pipeline, additional compression and ancillary facilities. An agreement is in place to provide cost recovery protections during the development phase, with the agreement currently extended through late 2026.

Regulatory Update:

• FERC: WBI Energy filed a rate case May 29, 2026. The filing seeks a $31 million annual revenue increase. Approximately 30% of the requested revenue increase is due to proposed new depreciation and amortization rates. FERC accepted and suspended the proposed rates on June 30, 2026, with rates to become effective Dec. 1, 2026, subject to refund and the outcome of hearing procedures if a settlement with our customers and FERC is not reached.

Guidance
MDU Resources is reaffirming guidance and expects earnings per share to be in the range of $0.93 to $1.00.

The expected 2026 results are based on several assumptions, including normal weather, economic and operating conditions for the remainder of the year, continued customer growth, successful execution of approved capital investment programs and constructive regulatory outcomes.

The company's long-term earnings-per-share growth objective remains 6% to 8%.

Conference Call
MDU Resources will webcast its third quarter 2026 earnings conference call today at 2 p.m. ET. The webcast can be accessed through the Investors section of the company's website. A replay will be available following the call.

About MDU Resources Group, Inc.
MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, strives to deliver safe, reliable, cost-effective and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at investor@mduresources.com. 

Investor Contact: Brent Miller, treasurer, 701-530-1730
Media Contact: Byron Pfordte, director of integrated communications, 208-377-6050

Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events or developments that the company anticipates will or may occur in the future are forward-looking statements based on underlying assumptions (many of which are based, in turn, upon further assumptions), including but not limited to, statements identified by the words "anticipates," "estimates," "expects," "intends," "plans," and "predicts," in each case related to such things as growth estimates, stockholder value creation, the company's "CORE" strategy, capital expenditures, financial guidance, trends, objectives, goals, dividend payout ratio targets, earnings per share growth targets, customer rates, regulatory approvals, sustainability, strategies and other such matters. These forward-looking statements are based on many assumptions and factors, which are detailed in the company's filings with the U.S. Securities and Exchange Commission.

While made in good faith, these forward-looking statements are based largely on the company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond the company's control. For additional discussion regarding risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in the company's most recent Annual Report on Form 10-K, and subsequent filings. Any changes in such assumptions or factors could produce significantly different results. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by applicable law, the company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.

Consolidated Statements of Income
	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
	(In millions, except per share amounts)
	(Unaudited)
Operating revenues	$    347.8	$    315.1		$  1,329.0	$  1,341.1
Operating expenses:
Purchased natural gas sold	58.6	58.5		391.5	471.7
Electric fuel and purchased power	48.6	41.2		133.3	119.8
Operation and maintenance	115.7	101.8		344.6	325.7
Depreciation and amortization	55.6	52.1		165.0	155.2
Taxes, other than income	21.7	21.7		83.4	85.7
Total operating expenses	300.2	275.3		1,117.8	1,158.1
Operating income	47.6	39.8		211.2	183.0
Other income	1.4	7.3		10.2	22.2
Interest expense	32.6	26.4		96.8	78.6
Income before income taxes	16.4	20.7		124.6	126.6
Income tax expense	2.3	2.3		10.3	11.6
Income from continuing operations	14.1	18.4		114.3	115.0
Discontinued operations, net of tax	(.1)	—		1.8	(.9)
Net income	$      14.0	$      18.4		$    116.1	$    114.1
Earnings per share – basic:
Income from continuing operations	$       .07	$       .09		$       .55	$       .56
Discontinued operations, net of tax	—	—		.01	—
Earnings per share – basic	$       .07	$       .09		$       .56	$       .56
Earnings per share – diluted:
Income from continuing operations	$       .07	$       .09		$       .54	$       .56
Discontinued operations, net of tax	—	—		.01	—
Earnings per share – diluted	$       .07	$       .09		$       .55	$       .56
Weighted average common shares outstanding – basic	211.2	204.3		208.8	204.3
Weighted average common shares outstanding – diluted	212.7	205.3		210.5	205.2

 

Selected Cash Flows Information
	Nine Months Ended
	September 30,
	2026	2025
	(In millions)
Net cash provided by operating activities	$    347.6	$    392.8
Net cash used in investing activities	(344.3)	(359.8)
Net cash used in financing activities	(3.9)	(24.0)
(Decrease) increase in cash, cash equivalents and restricted cash	(.6)	9.0
Cash, cash equivalents and restricted cash - beginning of year	28.2	66.9
Cash, cash equivalents and restricted cash - end of period	$      27.6	$      75.9

 

Capital Expenditures
Business Line	2026 Estimated
	(In millions)
Electric	$       102
Natural gas distribution	327
Pipeline	165
Total capital expenditures1	$       594
1 Excludes Other category
Note: Total capital expenditures is presented on a net basis

The capital program is subject to continued review and modification by the company, and actual expenditures may vary from estimates. Estimated 2026 capital expenditures reflect increased pipeline investments associated with the Bakken East Pipeline following the positive final investment decision and the resulting reclassification of preliminary investigation costs. Estimated electric and natural gas distribution capital expenditures decreased primarily due to the timing of Jamestown to Ellendale transmission project capital expenditures and the decision to discontinue the development of the Knott Landfill renewable natural gas project, respectively.

Non-GAAP Financial Measures
The company, in addition to presenting its earnings in conformity with GAAP, has provided non-GAAP financial measures of adjusted net income and adjusted earnings per share. The company defines adjusted net income as income to the company before any impacts from the decision to discontinue development of the Knott Landfill renewable natural gas project and Bakken East Pipeline advisory costs that did not quality for capitalization and adjusted earnings per share as earnings per share before any impacts from the decision to discontinue development of the Knott Landfill renewable natural gas project and Bakken East Pipeline advisory costs that did not qualify for capitalization.

The company believes these non-GAAP financial measures provide meaningful information to investors about the costs associated with the company's decision to discontinue development of the Knott Landfill renewable natural gas project and Bakken East Pipeline advisory costs that did not qualify for capitalization. The company's management uses the non-GAAP financial measures in conjunction with GAAP results when evaluating the company's operating results. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare such financial measures with other companies' non-GAAP financial measures having the same or similar names. The presentation of this additional information is not meant to be considered a substitution for financial measures prepared in accordance with GAAP. The company strongly encourages investors to review the consolidated financial statements in their entirety and to not rely on any single financial measure.

The following table provides a reconciliation of consolidated net income to adjusted net income and earnings per share to adjusted earnings per share:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2026	2025	2026	2025
	(In millions, except per share amounts)
	(Unaudited)
Net income	$         14.0	$         18.4	$       116.1	$       114.1
Adjustments:
Loss on Knott Landfill renewable natural gas project, net of tax1	2.1	—	2.1	—
Bakken East Pipeline advisory costs, net of tax1	0.5	—	1.2	—
Adjusted net income	$         16.6	$         18.4	$       119.4	$       114.1
Earnings per share reconciliation - diluted
Earnings per share	$          .07	$          .09	$          .55	$          .56
Adjustments:
Loss per share on Knott Landfill renewable natural gas project1	.01	—	.01	—
Bakken East Pipeline advisory costs1	—	—	.01	—
Adjusted earnings per share	$          .08	$          .09	$          .57	$          .56
1Net income includes a loss on the company's decision to discontinue development of the Knott Landfill renewable natural gas project of $2.7 million, net of tax of $0.6 million. Net income also includes advisory costs associated with the Bakken East Pipeline that did not qualify for capitalization. Bakken East Pipeline advisory costs were $0.7 million, net of tax of $0.2 million and $1.6 million, net of tax of $0.4 million for the three and nine months ended September 30, 2026, respectively.

 

Electric	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
	(In millions)
Operating revenues1,2	$    142.3	$    117.8		$    379.6	$    328.3
Operating expenses:
Electric fuel and purchased power1	48.6	41.2		133.3	119.8
Operation and maintenance	30.0	26.1		90.1	84.6
Depreciation and amortization	20.2	17.4		60.1	52.0
Taxes, other than income	4.8	4.7		15.7	14.2
Total operating expenses	103.6	89.4		299.2	270.6
Operating income	38.7	28.4		80.4	57.7
Other income	.2	2.0		2.5	5.7
Interest expense	11.3	7.6		34.4	23.1
Income before income taxes	27.6	22.8		48.5	40.3
Income tax (benefit) expense2	1.1	1.3		(7.2)	(6.6)
Net income	$      26.5	$      21.5		$      55.7	$      46.9

 

Operating Statistics	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
Revenues (millions)1,2
Retail sales:
Residential	$      43.6	$      35.7		$    118.0	$    102.2
Commercial3	67.2	50.7		162.9	137.1
Industrial	10.4	9.5		31.3	27.4
Other	2.2	2.0		6.2	5.5
	123.4	97.9		318.4	272.2
Other	18.9	19.9		61.2	56.1
	$    142.3	$    117.8		$    379.6	$    328.3
Volumes (million kWh)
Retail sales:
Residential	320.5	297.8		905.9	904.3
Commercial3	787.4	707.9		2,261.4	2,104.5
Industrial	124.2	121.1		373.6	357.8
Other	22.1	21.2		61.4	61.5
	1,254.2	1,148.0		3,602.3	3,428.1
Average cost of electric fuel and purchased power per kWh	$      .029	$      .027		$      .028	$      .026
The previous tables reflect items that are passed through to customers resulting in minimal impact to earnings. These items include: 1 Electric fuel and purchased power costs, which impact both operating revenues and electric fuel and purchased power expense. 2 Production tax credits, which impact income tax (benefit) expense and operating revenues. 3 Commercial includes the impact from data centers.

The electric business reported net income of $26.5 million in the third quarter of 2026, compared to $21.5 million for the same period in 2025. This increase was largely driven by higher retail sales revenue from new rates approved in regulatory proceedings in North Dakota, Montana and Wyoming and from recovery mechanisms associated with renewable investments, including Badger Wind Farm. Higher retail sales volumes across all customer classes, largely due to warmer weather, further drove the increase. Higher costs associated with Badger Wind Farm, including operation and maintenance, interest and depreciation expense, partially offset the increase. Lower returns on nonqualified benefit plan investments also impacted results.

Natural Gas Distribution	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
	(In millions)
Operating revenues1,2,3	$    153.0	$    144.3		$    828.1	$    890.5
Operating expenses:
Purchased natural gas sold1	62.6	62.7		439.8	519.0
Operation and maintenance2	63.6	56.7		189.6	180.8
Depreciation and amortization	27.0	26.6		80.0	79.2
Taxes, other than income3	13.0	13.3		56.3	60.9
Total operating expenses	166.2	159.3		765.7	839.9
Operating income (loss)	(13.2)	(15.0)		62.4	50.6
Other income	1.8	3.9		7.9	12.3
Interest expense	16.7	14.7		48.9	43.3
Income (loss) before income taxes	(28.1)	(25.8)		21.4	19.6
Income tax (benefit) expense	(7.4)	(7.6)		1.8	.5
Net income (loss)	$    (20.7)	$    (18.2)		$      19.6	$      19.1

 

Operating Statistics	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
Revenues (millions)1,2,3
Retail Sales:
Residential	$      72.1	$      67.5		$    442.7	$    465.2
Commercial	43.6	43.7		257.3	296.7
Industrial	7.3	8.0		29.4	33.1
	123.0	119.2		729.4	795.0
Transportation and other	30.0	25.1		98.7	95.5
	$    153.0	$    144.3		$    828.1	$    890.5
Volumes (MMdk)
Retail sales:
Residential	4.4	3.9		40.0	44.2
Commercial	4.8	4.7		30.8	33.6
Industrial	1.0	.9		3.6	3.6
	10.2	9.5		74.4	81.4
Transportation sales:
Commercial	.3	.3		1.2	1.4
Industrial	40.2	42.6		111.5	129.1
	40.5	42.9		112.7	130.5
Total throughput	50.7	52.4		187.1	211.9
Average cost of natural gas per dk	$      6.15	$      6.59		$      5.91	$      6.38
The previous tables reflect items that are passed through to customers resulting in minimal impact to earnings. These items include: 1 Natural gas costs, which impact operating revenues and purchased natural gas sold. 2 Conservation, which impacts operating revenues and operation and maintenance expense. 3 Revenue-based taxes that impact both operating revenues and taxes, other than income.

The natural gas distribution business reported a seasonal loss of $20.7 million in the third quarter of 2026, compared to a seasonal loss of $18.2 million for the same period in 2025. The higher seasonal loss was primarily driven by higher operation and maintenance expense, including higher payroll-related costs and a $2.1 million net of tax loss on the company's decision to discontinue development of the Knott Landfill renewable natural gas project. Higher interest expense resulting from higher long-term debt balances and lower returns on nonqualified benefit plan investments also contributed to the loss. These impacts were partially offset by new rates approved in regulatory proceedings primarily in Idaho and Washington, as well as higher retail sales volumes across all customer classes.

Pipeline	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
	(In millions)
Operating revenues	$      56.8	$      57.4		$    170.6	$    170.4
Operating expenses:
Operation and maintenance	22.3	21.0		65.5	62.7
Depreciation and amortization	8.4	8.1		24.9	24.0
Taxes, other than income	3.9	3.7		11.4	10.6
Total operating expenses	34.6	32.8		101.8	97.3
Operating income	22.2	24.6		68.8	73.1
Other income (expense)	(.8)	1.0		(.8)	3.1
Interest expense	4.3	4.1		12.5	12.6
Income before income taxes	17.1	21.5		55.5	63.6
Income tax expense	4.0	4.7		12.7	14.2
Net income	$      13.1	$      16.8		$      42.8	$      49.4

 

Operating Statistics	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
Transportation volumes (MMdk)	162.3	160.3		455.9	455.2
Customer natural gas storage balance (MMdk):
Beginning of period	41.5	34.6		37.6	44.1
Net injection	4.7	13.6		8.6	4.1
End of period	46.2	48.2		46.2	48.2

The pipeline business reported net income of $13.1 million in the third quarter of 2026, compared to $16.8 million for the same period in 2025. The decrease was driven by higher operation and maintenance expense primarily attributable to higher payroll-related and material costs as well as consulting costs associated with its recently filed rate case. Lower storage injections, advisory costs associated with the Bakken East Pipeline, and lower returns on the company's nonqualified benefit plans further drove the decrease. These impacts were partially offset by short-term natural gas transportation contracts, as well as contributions from previously constructed growth projects, including a contracted volume increase.

Other
	Three Months Ended			Nine Months Ended
	September 30,			September 30,
	2026	2025		2026	2025
	(In millions)
Operating revenues	$         .2	$         .3		$         .6	$         .6
Operating expenses:
Operation and maintenance	.3	(1.5)		1.0	(1.0)
Total operating expenses	.3	(1.5)		1.0	(1.0)
Operating income (loss)	(.1)	1.8		(.4)	1.6
Other income	.6	2.0		2.3	5.0
Interest expense	.7	1.6		2.7	3.5
Income (loss) before income taxes	(.2)	2.2		(.8)	3.1
Income tax expense	4.6	3.9		3.0	3.5
Loss from continuing operations	(4.8)	(1.7)		(3.8)	(.4)
Discontinued operations, net of tax	(.1)	—		1.8	(.9)
Net loss	$      (4.9)	$      (1.7)		$      (2.0)	$      (1.3)

For the third quarter of 2026 Other reported a net loss of $4.9 million, compared to a net loss of $1.7 million for the same period in 2025. The decrease was primarily due to higher claims experience at the captive insurer and higher income tax expense due to income tax adjustments related to the company's annualized estimated tax rate.

Also included in Other is general and administrative costs and interest expense previously allocated to the company's former businesses that did not meet the criteria for discontinued operations. Discontinued operations includes certain costs associated with legacy business activities.

Other Financial Data
	September 30,
	2026	2025
	(In millions, except per share amounts)
	(Unaudited)
Book value per common share	$          13.92	$          13.33
Market price per common share	$          18.54	$          17.81
Market value as a percent of book value	133.2 %	133.6 %
Total assets	$          7,861	$          7,186
Total equity	$          2,971	$          2,723
Total debt	$          2,595	$          2,353
Capitalization ratios:
Total equity	53.4 %	53.6 %
Total debt	46.6 %	46.4 %
	100.0 %	100.0 %

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/mdu-resources-reports-third-quarter-2026-results-reaffirms-guidance-302929723.html

SOURCE MDU Resources Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were MDU's third-quarter 2026 earnings?

MDU reported $14.0 million in net income and $0.07 diluted EPS, compared with $18.4 million and $0.09 in third-quarter 2025. Adjusted net income was $16.6 million, with adjusted EPS of $0.08, versus $18.4 million and $0.09 a year earlier.

What is MDU's 2026 earnings guidance?

MDU reaffirmed expected 2026 earnings per share of $0.93 to $1.00. The outlook assumes normal weather, economic and operating conditions for the remainder of the year, continued customer growth, execution of approved capital investment programs and constructive regulatory outcomes.

How does MDU plan to finance the Bakken East Pipeline?

MDU is evaluating financing structures that include potential participation by financial or strategic investors. The company expects WBI Energy to retain majority ownership and operational control.

When does MDU expect to file the Bakken East regulatory application?

MDU anticipates filing the Bakken East FERC Section 7(c) application in the fourth quarter of 2026. This is the project's application to the Federal Energy Regulatory Commission.

How does MDU assign costs for serving large electric customers?

MDU assigns infrastructure and service costs specifically needed for large-load customers through contracts, tariffs and regulatory approvals. Its stated principle is that the customer creating a cost should pay it. Benefits associated with these agreements may also flow back to customers through approved regulatory mechanisms.