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MDU Resources Group, Inc. reports developments for a regulated energy delivery business built around electric utility service, natural gas distribution and pipeline operations. Its utility operations provide electric and gas service across parts of the Pacific Northwest, Midwest, Rocky Mountain and northern Great Plains, while its pipeline business operates a natural gas transportation and storage network.
Recurring news includes quarterly earnings, weather effects on utility demand, capital-investment plans, common-stock dividend actions and updates from the pipeline segment. Company releases also address financing capacity and project planning tied to energy delivery infrastructure.
On April 11, 2023, MDU Resources announced that its subsidiary, Knife River Holding Company, has priced a $425 million notes offering due in 2031. This initiative is part of the planned spinoff of Knife River Corporation into a separate publicly traded entity. The notes will carry a 7.750% interest rate, payable semiannually, and will mature on May 1, 2031. The net proceeds from this offering are intended for the repayment of intercompany obligations and to cover fees related to the spinoff. The closing of this offering is expected around April 25, 2023. Notably, the notes will not be registered under the Securities Act, thus limiting their offer to qualified institutional buyers and non-U.S. persons only.
On April 10, 2023, MDU Resources Group announced that its subsidiary, Knife River Holding Company, is launching an offering of notes due in 2031. This move is part of the planned spinoff of Knife River Corporation into a separate publicly traded entity. The offering will be made under Rule 144A and Regulation S of the Securities Act of 1933, targeting qualified institutional buyers and non-U.S. entities. The notes will not be registered in the U.S. and can only be sold under specific exemptions. This announcement indicates MDU's strategic shift and commitment to refining its business structure.
MDU Resources Group, Inc. (NYSE: MDU) announced the anticipated board of directors for Knife River Holding Company, set for completion with the planned separation of its construction materials subsidiary in Q2 2023. The new board will consist of six directors, including five from MDU Resources. Key members include Karen B. Fagg, expected chair, and William J. Sandbrook, former CEO of U.S. Concrete. The separation aims to optimize shareholder value, with MDU stockholders retaining their shares while receiving a pro rata distribution of at least 80.1% of Knife River shares. The spin-off is projected to be tax-free for MDU and its shareholders. The separation is subject to board approval and SEC confirmation of the registration statement.
MDU Resources Group, Inc. (NYSE: MDU) announced the filing of a Form 10 with the SEC, designating 'KNF' as the ticker for Knife River Corporation. This spinoff intends to create an independent, publicly traded company by the second quarter of 2023. MDU stockholders will receive at least 80.1% of Knife River's shares in a tax-free distribution. MDU may retain up to 19.9% of Knife River shares for debt reduction or further distribution. The separation aligns with MDU's strategy to focus on regulated energy delivery while Knife River will operate as a construction materials business.
MDU Resources Group, Inc. (NYSE: MDU) has appointed a management team for Knife River Corporation, set to lead following its anticipated separation into an independent, publicly traded entity in Q2 2023. Brian R. Gray will assume the role of president and CEO on March 1, succeeding David C. Barney, who will transition to a senior advisor role. The leadership team includes experienced professionals from both Knife River and MDU Resources with deep industry knowledge. MDU aims to enhance shareholder value through this separation, positioning one company for regulated energy delivery and the other for construction materials.
MDU Resources Group has declared a quarterly dividend of 22.25 cents per share on its common stock, consistent with the previous quarter. This dividend will be payable on April 1 to stockholders of record as of March 9, 2023. MDU Resources operates in regulated energy delivery and construction materials and services, and is included in both the S&P MidCap 400 and S&P High-Yield Dividend Aristocrats indices.
MDU Resources Group reported 2022 GAAP earnings of $367.5 million ($1.81 per share), slightly down from $378.1 million in 2021. Adjusted earnings for 2022 were $380.2 million ($1.87 per share). In Q4 2022, GAAP earnings reached $117.1 million (57 cents/share), up from $86.5 million (42 cents/share) in Q4 2021. The company plans to spin off its construction materials subsidiary, Knife River Corporation, and has a backlog of over $3 billion across its construction businesses. Despite operational success, results were impacted by lower investment returns of approximately $21 million for 2022 due to market fluctuations. MDU expects 2023 earnings from energy delivery to be $140 million to $150 million.
MDU Resources Group (NYSE:MDU) announced a cooperation agreement with Corvex Management LP, appointing James H. Gemmel as a non-voting observer to its board, pending FERC approval. The board will expand by one director upon approval, with Gemmel fulfilling the new role. This collaboration aligns with MDU's efforts to spin off its Knife River construction materials business and strategically review MDU Construction Services Group. The anticipated 2023 Annual Meeting of Stockholders is scheduled for May 9, where Gemmel may be nominated for re-election. Corvex's engagement reflects a commitment to enhance shareholder value through these initiatives.
MDU Resources Group (NYSE: MDU) has announced its year-end 2022 earnings conference call, scheduled for February 9, 2023, at 2 p.m. EST. The company will disclose its year-end financial results prior to the opening of U.S. markets on the same day. The earnings call will be available via webcast on MDU's website under the 'Investor Relations' section.
As a member of the S&P MidCap 400 and S&P High-Yield Dividend Aristocrats indices, MDU is engaged in providing essential products and services through its regulated energy delivery and construction materials businesses.
MDU Resources Group has appointed Nathan W. Ring as the new chief financial officer of its subsidiary Knife River Corporation, effective after the planned separation of Knife River, expected in the second quarter of 2023. Ring, currently vice president of business development at Knife River, brings over 20 years of experience within the company. This strategic leadership change aims to strengthen Knife River's financial management ahead of its transition to an independent, publicly traded entity.