MDU Resources (NYSE: MDU) affirms 2026 EPS outlook and details major Bakken East pipeline plan
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
MDU Resources Group reported first quarter 2026 net income of $80.8 million, down slightly from $82.0 million a year earlier, with diluted earnings per share of $0.39 versus $0.40. Operating revenues were $606.0 million compared with $674.8 million, as milder weather reduced electric and natural gas volumes but was partially offset by rate mechanisms and normalization features.
The electric segment earned $14.5 million, the natural gas distribution segment earned $44.2 million, and the pipeline segment earned $15.3 million. Management affirmed 2026 earnings guidance of $0.93 to $1.00 per share and reiterated a long-term earnings per share growth target of 6%–8%.
The company highlighted progress on its proposed Bakken East Pipeline Project, which attracted about 1.4 billion cubic feet per day of interest in a binding open season and is now expected to require $2.7 billion to $3.2 billion of capital investment, incremental to a $3.1 billion 2026–2030 capital plan. A final investment decision has not been made. MDU settled part of a December 2025 follow-on equity offering, issuing 4.3 million shares for $81.3 million in proceeds, as part of a plan to raise $150–$175 million of equity in 2026 and $100–$125 million in 2027.
Positive
- None.
Negative
- None.
Insights
Results were steady, guidance held, and a very large pipeline project advanced but remains undecided.
MDU Resources delivered relatively stable first quarter 2026 earnings, with net income of $80.8 million and diluted EPS of $0.39 versus $0.40 last year. Weather-driven volume declines in the electric and natural gas distribution segments were largely mitigated by rate relief, normalization mechanisms, and contributions from projects such as Badger Wind Farm and the Minot Expansion Project.
A major focus is the proposed Bakken East Pipeline Project. The binding open season generated about 1.4 billion cubic feet per day of interest, including a firm commitment of $50 million annually for ten years from the State of North Dakota. Capital for the potential project is now projected at $2.7–$3.2 billion, incremental to a $3.1 billion 2026–2030 capital investment forecast, with a final investment decision still pending.
The company is already executing an equity funding plan, issuing 4.3 million shares for $81.3 million in March as part of expected equity issuance of $150–$175 million in 2026 and $100–$125 million in 2027. Management affirmed 2026 EPS guidance of $0.93–$1.00 and a long-term EPS growth outlook of 6%–8%, while noting emerging opportunities tied to data center growth and ongoing regulatory actions across multiple states.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income: $80.8 million
Diluted EPS: $0.39
Operating revenues: $606.0 million
+5 more
8 metrics
Net income
$80.8 million
Three months ended March 31, 2026
Diluted EPS
$0.39
Three months ended March 31, 2026
Operating revenues
$606.0 million
Three months ended March 31, 2026
Proposed Bakken East capital
$2.7–$3.2 billion
Projected capital investment range for potential project
Capital plan 2026–2030
$3.113 billion
Estimated total capital expenditures across business lines
Equity issued
4.3 million shares, $81.3 million
Settlement of forward sale agreements on March 13, 2026
2026 EPS guidance
$0.93–$1.00
Full-year 2026 expected earnings per share range
Long-term EPS growth target
6%–8%
Stated long-term earnings per share growth rate
Key Terms
binding open season, precedent agreements, weather normalization mechanisms, general rate case, +2 more
6 terms
binding open season financial
"a successful binding open season for the proposed Bakken East Pipeline Project concluded with approximately 1.4 billion cubic feet per day of submitted interest"
A binding open season is a set period when a project owner offers future capacity or service and potential customers sign legally enforceable contracts committing to pay for that capacity, whether they actually use it or not. For investors it matters because those firm commitments function like pre-sold revenue: they demonstrate demand, make project cash flows more predictable, and help secure financing and reduce the risk that the asset will be idle — like selling season tickets in advance to justify building a stadium.
precedent agreements financial
"approximately 40% has been signed under precedent agreements with additional precedent agreements in active negotiation"
Precedent agreements are past, finalized contracts or deal documents used as reference points when negotiating or valuing a new transaction. Think of them like recent sales contracts for similar homes that help set expectations: they show what terms, prices and protections others accepted. Investors use them to judge whether a proposed deal is fair, to estimate likely costs or risks, and to spot common legal or commercial features that could affect future returns.
weather normalization mechanisms financial
"Weather normalization mechanisms in certain states helped offset the warmer temperatures"
Weather normalization mechanisms are methods companies use to adjust reported sales, costs or performance to remove the effects of abnormal weather so results reflect typical conditions. For investors, this is like comparing seasonal sales after removing an unusually hot summer or cold winter — it makes underlying trends and management performance clearer, helping assess whether changes are due to real business shifts or just weather-driven swings.
general rate case financial
"General rate case settlement approved for an annual increase of $5.8 million; rates effective April 1, 2026"
A general rate case is a formal regulatory proceeding where a public utility asks a government agency for permission to change the prices charged to customers. It matters to investors because the outcome determines the company’s allowed revenue and profit margin—similar to a landlord getting approval to raise rent—which directly affects future cash flow, dividend capacity and the valuation of the utility’s stock or bonds.
System Safety and Integrity Rider financial
"Wyoming: System Safety and Integrity Rider filed Aug. 15, 2025; hearing held April 9, 2026"
A system safety and integrity rider is an add-on to a contract, insurance policy, or regulatory filing that requires specific protections for a company’s operational or digital systems—such as security controls, testing, monitoring, and reporting. For investors it matters because the rider shifts responsibility, can increase costs or compliance burdens, and reduces the chance of disruptive failures or liability; think of it as a required safety inspection and warranty for a company’s critical systems.
forward sale agreements financial
"a portion of the related forward sale agreements were settled on March 13, 2026, resulting in the issuance of 4.3 million shares"
A forward sale agreement is a deal where two parties agree today to sell and buy an asset at a set price on a future date. It’s like promising to sell your car to a friend next month at today's price, regardless of how the car's value changes. These agreements help businesses lock in prices and reduce uncertainty about future costs or income.
Earnings Snapshot
Operating revenues: $606.0 million · Guidance included
Q1 2026
Operating revenues
$606.0 million
Net income
$80.8 million
Diluted EPS
$0.39
Net cash from operating activities
$149.2 million
Guidance
For 2026, MDU Resources expects earnings per share to be in the range of $0.93 to $1.00 and maintains a long-term EPS growth rate target of 6%–8%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (Commission File Number) | (IRS Employer | ||||||
| incorporation) | Identification No.) | |||||||
(Address of principal executive offices) | ||
(Zip Code) | ||
Registrant’s telephone number, including area code: (701 ) 530-1000
| N/A | ||
| (Former name or former address, if changed since last report.) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934::
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On May 7, 2026, MDU Resources Group, Inc. (the “Company”) issued a news release (the “News Release”) announcing its financial results for the first quarter of 2026. A copy of the News Release is furnished as Exhibit 99 to this Current Report on Form 8-K, which, in its entirety, is incorporated herein by reference.
The Company is webcasting a conference call on May 7, 2026, to discuss its first quarter 2026 financial results, during which the Company will provide an update on the business.
The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
In conjunction with the News Release, the Company also made available an investor presentation concerning its first quarter 2026 financial results, which is available under the “Investor Relations” section of the Company’s corporate website, located at investor.mdu.com. Information on the Company’s corporate website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the U.S. Securities and Exchange Commission.
The information contained in Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | |||||||
| 99 | News Release, dated May 7, 2026. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
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SIGNATURE
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MDU Resources Group, Inc.
Date: May 7, 2026 | By: | /s/ Jason L. Vollmer | ||||||
| Jason L. Vollmer | ||||||||
| Chief Financial Officer | ||||||||
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MDU Resources Reports First Quarter 2026 Results; Progress on Proposed Bakken East Pipeline
•Strong open season interest for proposed Bakken East Pipeline Project
•Consolidated net income of $80.8 million and diluted earnings per share of $0.39
•Milder weather unfavorably impacted results by approximately $0.03 per share
•2026 guidance affirmed; earnings per share in the range of $0.93 to $1.00
BISMARCK, ND – May 7, 2026 – MDU Resources Group, Inc. (NYSE: MDU) today announced its financial results for the first quarter of 2026, highlighting continued execution across its segments, despite milder weather, as well as positive outcomes from recent capital investments and meaningful progress on its proposed Bakken East Pipeline Project.
During the quarter, a successful binding open season for the proposed Bakken East Pipeline Project concluded with approximately 1.4 billion cubic feet per day of submitted interest. Of that total, approximately 40% has been signed under precedent agreements with additional precedent agreements in active negotiation. Based on submitted interest, we are now projecting total capital investment for the potential project in the range of $2.7 billion to $3.2 billion, which would be incremental to our current $3.1 billion capital investment forecast. The company has not reached a final investment decision on this project and will continue to finalize precedent agreement negotiations before proceeding with a decision. As we look to finance a project of this size and scope, we will evaluate all options including using our balance sheet, pursuing potential partnerships and various other options. We will continue to provide updates on this potential project as details develop.
Recent investments, including Badger Wind Farm and the Minot Expansion Project, are delivering financial benefits and supporting customer demand, while emerging opportunities tied to data center growth across our service territory reinforces the long-term value of the company’s infrastructure portfolio.
“We delivered a strong first quarter when accounting for the impact of warmer weather across our service territory,” said Nicole A. Kivisto, president and CEO of MDU Resources. “Milder conditions reduced volumes, and normalization mechanisms in several of our states helped offset those impacts, demonstrating the strength of our regulated businesses. At the same time, rate relief as well as recent investments such as Badger Wind Farm and our pipeline expansions contributed positive results. Additionally, we continue to see encouraging demand trends, including continued interest from data center development and strong interest in our proposed Bakken East Pipeline Project.”
The following summarizes the company's first quarter results for the three months ended March 31:
2026 | 2025 | |||||||
Net income (in millions) | $ | 80.8 | $ | 82.0 | ||||
| Earnings per share, diluted | $ | .39 | $ | .40 | ||||
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“Our ability to deliver consistent results in a dynamic energy environment speaks to the strength and operational discipline of our teams,” Kivisto added. “Our employees remain focused on safety, reliability and cost-effectiveness, enabling us to deliver long-term value to our customers and stockholders.”
Electric Utility Segment
Benefits from Badger Wind Farm recovery, more than offset by impacts from milder weather
•Lower volumes due to 10% to 30% milder temperatures across our service territory
•Higher interest expense and depreciation largely related to Badger Wind Farm investment
•Higher retail revenue driven by renewable cost recovery and rate mechanisms associated with Badger Wind Farm
The electric segment earned $14.5 million in the first quarter of 2026, compared with $15.0 million in the first quarter of 2025. Badger Wind Farm was placed in service Dec. 31, 2025, and this marked the first full quarter of benefits from the investment, driving higher retail revenues and recovery. These benefits were more than offset by milder weather, which drove lower retail sales volumes of approximately $2 million.
Regulatory Update:
•Montana: Interim electric rates approved for an annual increase of $10.4 million; rates effective April 1, 2026, subject to refund; reflecting recovery of infrastructure investments, including Badger Wind Farm, and associated depreciation and operation and maintenance expense
•Wyoming: General rate case settlement approved for an annual increase of $5.8 million; rates effective April 1, 2026; reflecting recovery of infrastructure investments as well as associated operation and maintenance expense
•North Dakota: General rate case filing is anticipated later this year
Natural Gas Distribution Segment
Lower volumes largely offset by weather normalization mechanisms and rate relief
•Lower retail and transportation volumes due to warmer weather
•Continued customer growth of approximately 1.5% year-over-year
•Rate relief across multiple jurisdictions
The natural gas distribution segment earned $44.2 million in the first quarter of 2026, compared with $44.7 million in the first quarter of 2025. Results reflect lower volumes driven by warmer weather, approximately a $5 million impact, due to 10%-30% warmer temperatures across our service territory compared to last year, including temperatures 20% higher in Idaho and 30% higher in Montana. Weather normalization mechanisms in certain states helped offset the warmer temperatures. Additionally, the lower volumes were largely offset by rate relief in Washington, Idaho, Montana and Wyoming.
Regulatory Update:
•Oregon: Pending general rate case filed Nov. 25, 2025, requesting an annual increase of $16.4 million; reflecting rate base growth, along with associated depreciation and increased operation and maintenance expense
•Idaho: General rate case settlement approved for an annual increase of $13.0 million; rates effective Jan. 1, 2026
•Washington: Year two rates under the approved multi-year rate plan, representing an annual increase of $10.8 million, effective March 1, 2026; in April 2026, filed a revision to decrease revenue by $2.1 million annually due to forecasted plant that was not placed in service as of Dec. 31, 2025
◦The company anticipates filing a multi-year general rate case this year
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•Wyoming: System Safety and Integrity Rider filed Aug. 15, 2025; hearing held April 9, 2026, pending before the Wyoming Public Service Commission
•Minnesota: General rate case filing is anticipated later this year
Pipeline Segment
Lower storage-related revenue partially offset by contributions from recent expansion projects placed in service
•Decreased interruptible storage withdrawals
•Increased operation and maintenance expense
•Positive results from recent projects placed in service
The pipeline segment earned $15.3 million in the first quarter of 2026, compared to a record $17.2 million in the first quarter of 2025. Results were impacted by lower interruptible natural gas storage withdrawals, along with higher operation and maintenance expense primarily due to increased material costs and payroll-related expenses. Higher Montana property tax accruals also contributed to the year-over-year decrease.
These impacts were partially offset by continued strong customer demand for short-term natural gas transportation contracts as well as contributions from a growth project recently placed in service.
Pipeline Segment Strategic Projects Updates:
•Proposed Bakken East Pipeline Project: While a final investment decision has not yet been made, customer interest and ongoing commercial discussions demonstrate continued demand for additional takeaway capacity from the Bakken region. Included in the 1.4 billion cubic feet per day of interest is a firm capacity commitment of $50 million annually for ten years from the State of North Dakota, reinforcing the strategic importance of the project to regional energy infrastructure and economic development. The company continues to advance the project in a disciplined manner, navigating evolving market dynamics that include regional data center development considerations, while maintaining a focus on long-term value creation and capital efficiency. Phase One of the proposed project is targeted to be complete in November 2029, with Phase Two targeted to be complete in November 2030.
•Line Section 32 Expansion Project: This project will provide natural gas transportation service to a new electric generation facility in northwest North Dakota. A FERC Section 7(c) application was filed in March 2026, marking an important regulatory milestone in the project’s development. The project is dependent on regulatory approvals with construction targeted to be complete in late 2028.
•Minot Industrial Project: This proposed project could consist of an approximately 90-mile pipeline from Tioga, North Dakota to Minot, North Dakota and ancillary facilities to support anticipated industrial demand in the area. An agreement is in place to provide cost recovery protections during the development phase, with the agreement currently extended through late 2026.
Equity and Funding Plan
In connection with the company's December 2025, follow-on public offering, a portion of the related forward sale agreements were settled on March 13, 2026, resulting in the issuance of 4.3 million shares of new common stock for proceeds of $81.3 million. The company had previously stated it expects to issue between $150 million to $175 million of equity in 2026, and between $100 million to $125 million in 2027, to support near-term capital expenditures for growth.
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Guidance
For 2026, MDU Resources expects earnings per share to be in the range of $0.93 to $1.00.
The expected 2026 results are based on these assumptions:
•Normal weather, economic and operating conditions for the remainder of the year
•Continued growth in utility customers at 1%–2% annually
•Successful execution of approved capital investment and rate recovery plans
•Continued execution of its debt and equity financing plans
The company's long-term EPS guidance remains unchanged with an expected growth rate of 6%–8%.
Conference Call
MDU Resources will webcast its first quarter 2026 earnings conference call today at 2 p.m. ET. The webcast can be accessed at www.mdu.com under the "Investors" heading. Select "Events & Presentations," and click on "Q1 2026 Earnings Conference Call." After the webcast, a replay will be available at the same location.
About MDU Resources Group, Inc.
MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, delivers 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
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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 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, are forward-looking statements. 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.
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| Consolidated Statements of Income | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| (In millions, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Operating revenues | $ | 606.0 | $ | 674.8 | ||||
| Operating expenses: | ||||||||
| Purchased natural gas sold | 239.4 | 317.2 | ||||||
| Electric fuel and purchased power | 46.1 | 43.7 | ||||||
| Operation and maintenance | 114.8 | 111.1 | ||||||
| Depreciation and amortization | 54.2 | 51.3 | ||||||
| Taxes, other than income | 35.8 | 38.7 | ||||||
| Total operating expenses | 490.3 | 562.0 | ||||||
| Operating income | 115.7 | 112.8 | ||||||
| Other income (expense) | 2.6 | 5.0 | ||||||
| Interest expense | 32.7 | 26.8 | ||||||
| Income before income taxes | 85.6 | 91.0 | ||||||
| Income tax expense | 4.7 | 8.5 | ||||||
| Income from continuing operations | 80.9 | 82.5 | ||||||
| Discontinued operations, net of tax | (.1) | (.5) | ||||||
| Net income | $ | 80.8 | $ | 82.0 | ||||
| Earnings per share – basic: | ||||||||
| Income from continuing operations | $ | .39 | $ | .40 | ||||
| Discontinued operations, net of tax | — | — | ||||||
| Earnings per share – basic | $ | .39 | $ | .40 | ||||
| Earnings per share – diluted: | ||||||||
| Income from continuing operations | $ | .39 | $ | .40 | ||||
| Discontinued operations, net of tax | — | — | ||||||
| Earnings per share – diluted | $ | .39 | $ | .40 | ||||
| Weighted average common shares outstanding – basic | 205.4 | 204.1 | ||||||
| Weighted average common shares outstanding – diluted | 207.0 | 205.0 | ||||||
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Selected Cash Flows Information | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| (In millions) | ||||||||
| Net cash provided by operating activities | $ | 149.2 | $ | 217.5 | ||||
| Net cash used in investing activities | (91.2) | (94.8) | ||||||
| Net cash used in financing activities | (32.9) | (130.1) | ||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 25.1 | (7.4) | ||||||
| Cash, cash equivalents and restricted cash - beginning of year | 28.2 | 66.9 | ||||||
| Cash, cash equivalents and restricted cash - end of period | $ | 53.3 | $ | 59.5 | ||||
| Capital Expenditures | ||||||||||||||||||||
| Business Line | 2026 Estimated | 2027 Estimated | 2028 Estimated | 2029 Estimated | 2030 Estimated | 2026-2030 Total Estimated | ||||||||||||||
| (In millions) | ||||||||||||||||||||
| Electric | $ | 144 | $ | 309 | $ | 250 | $ | 184 | $ | 210 | $ | 1,097 | ||||||||
| Natural gas distribution | 361 | 295 | 240 | 254 | 223 | 1,373 | ||||||||||||||
| Pipeline | 60 | 70 | 181 | 282 | 50 | 643 | ||||||||||||||
Total capital expenditures1 | $ | 565 | $ | 674 | $ | 671 | $ | 720 | $ | 483 | $ | 3,113 | ||||||||
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. Actual expenditures may vary from estimates. Investment in the potential Bakken East Pipeline project would be incremental to the outlined capital program.
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| Electric | Three Months Ended | ||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | Variance | |||||||||
| (In millions) | |||||||||||
Operating revenues1,2 | $ | 121.2 | $ | 112.4 | 7.8 | % | |||||
| Operating expenses: | |||||||||||
Electric fuel and purchased power1 | 46.1 | 43.7 | 5.5 | % | |||||||
| Operation and maintenance | 28.9 | 28.6 | 1.0 | % | |||||||
| Depreciation and amortization | 19.6 | 17.2 | 14.0 | % | |||||||
| Taxes, other than income | 5.5 | 4.8 | 14.6 | % | |||||||
| Total operating expenses | 100.1 | 94.3 | 6.2 | % | |||||||
| Operating income | 21.1 | 18.1 | 16.6 | % | |||||||
| Other income | .4 | 1.0 | (60.0) | % | |||||||
| Interest expense | 11.9 | 7.9 | 50.6 | % | |||||||
| Income before income taxes | 9.6 | 11.2 | (14.3) | % | |||||||
Income tax benefit2 | (4.9) | (3.8) | 28.9 | % | |||||||
| Net income | $ | 14.5 | $ | 15.0 | (3.3) | % | |||||
| Operating Statistics | Three Months Ended | |||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
Revenues (millions)1,2 | ||||||||
| Retail sales: | ||||||||
| Residential | $ | 39.1 | $ | 38.2 | ||||
Commercial3 | 46.9 | 45.2 | ||||||
| Industrial | 9.9 | 8.8 | ||||||
| Other | 2.0 | 1.7 | ||||||
| 97.9 | 93.9 | |||||||
| Other | 23.3 | 18.5 | ||||||
| $ | 121.2 | $ | 112.4 | |||||
| Volumes (million kWh) | ||||||||
| Retail sales: | ||||||||
| Residential | 332.0 | 370.7 | ||||||
Commercial3 | 741.9 | 723.9 | ||||||
| Industrial | 120.7 | 116.7 | ||||||
| Other | 19.2 | 20.2 | ||||||
| 1,213.8 | 1,231.5 | |||||||
| Average cost of electric fuel and purchased power per kWh | $ | .028 | $ | .027 | ||||
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 and operating revenues. 3 Commercial includes the impact from data centers. | ||||||||
The electric business reported net income of $14.5 million in the first quarter of 2026, compared to $15.0 million for the same period in 2025. This decrease was largely the result of higher interest expense associated with debt issuances for recent capital investments including Badger Wind Farm. Lower retail sales volumes due to warmer weather and higher depreciation expense, primarily Badger Wind Farm, further drove the decrease. Higher retail revenues, primarily from recovery mechanisms associated with renewable investments including Badger Wind Farm, largely offset the decrease.
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| Natural Gas Distribution | Three Months Ended | ||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | Variance | |||||||||
| (In millions) | |||||||||||
Operating revenues1,2,3 | $ | 462.5 | $ | 539.3 | (14.2) | % | |||||
Operating expenses: | |||||||||||
Purchased natural gas sold1 | 273.8 | 350.5 | (21.9) | % | |||||||
Operation and maintenance2 | 65.2 | 63.6 | 2.5 | % | |||||||
| Depreciation and amortization | 26.4 | 26.1 | 1.1 | % | |||||||
Taxes, other than income3 | 26.5 | 30.6 | (13.4) | % | |||||||
Total operating expenses | 391.9 | 470.8 | (16.8) | % | |||||||
| Operating income | 70.6 | 68.5 | 3.1 | % | |||||||
| Other income | 2.3 | 3.3 | (30.3) | % | |||||||
| Interest expense | 16.3 | 14.8 | 10.1 | % | |||||||
| Income before income taxes | 56.6 | 57.0 | (0.7) | % | |||||||
| Income tax expense | 12.4 | 12.3 | 0.8 | % | |||||||
| Net income | $ | 44.2 | $ | 44.7 | (1.1) | % | |||||
| Operating Statistics | Three Months Ended | |||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
Revenues (millions)1,2,3 | ||||||||
| Retail Sales: | ||||||||
| Residential | $ | 259.5 | $ | 291.6 | ||||
| Commercial | 150.2 | 189.6 | ||||||
| Industrial | 13.4 | 15.7 | ||||||
| 423.1 | 496.9 | |||||||
| Transportation and other | 39.4 | 42.4 | ||||||
| $ | 462.5 | $ | 539.3 | |||||
Volumes (MMdk) | ||||||||
Retail sales: | ||||||||
Residential | 26.5 | 31.8 | ||||||
Commercial | 18.6 | 21.9 | ||||||
Industrial | 1.5 | 1.7 | ||||||
| 46.6 | 55.4 | |||||||
Transportation sales: | ||||||||
Commercial | .6 | .8 | ||||||
Industrial | 38.9 | 48.4 | ||||||
| 39.5 | 49.2 | |||||||
Total throughput | 86.1 | 104.6 | ||||||
Average cost of natural gas per dk | $ | 5.87 | $ | 6.33 | ||||
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. | ||||||||
9
The natural gas distribution business reported net income of $44.2 million in the first quarter of 2026, compared to $44.7 million for the same period in 2025. The decrease was largely the result of lower retail sales volumes due to warmer weather. Lower electric generation transportation volumes driven by warmer weather, higher operation and maintenance expense, primarily payroll-related expense and contract services, and higher interest expense further drove the decrease. The decrease was largely offset by higher retail sales revenue due to rate relief in Washington, Idaho, Montana and Wyoming.
Pipeline | Three Months Ended | ||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | Variance | |||||||||
| (In millions) | |||||||||||
Operating revenues | $ | 57.1 | $ | 56.7 | .7 | % | |||||
Operating expenses: | |||||||||||
Operation and maintenance | 20.8 | 19.3 | 7.8 | % | |||||||
| Depreciation and amortization | 8.2 | 8.0 | 2.5 | % | |||||||
Taxes, other than income | 3.8 | 3.3 | 15.2 | % | |||||||
Total operating expenses | 32.8 | 30.6 | 7.2 | % | |||||||
| Operating income | 24.3 | 26.1 | (6.9) | % | |||||||
| Other income (expense) | (.3) | .4 | (175.0) | % | |||||||
| Interest expense | 4.0 | 4.2 | (4.8) | % | |||||||
| Income before income taxes | 20.0 | 22.3 | (10.3) | % | |||||||
| Income tax expense | 4.7 | 5.1 | (7.8) | % | |||||||
| Net income | $ | 15.3 | $ | 17.2 | (11.0) | % | |||||
| Operating Statistics | Three Months Ended | |||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
Transportation volumes (MMdk) | 143.2 | 143.5 | ||||||
Customer natural gas storage balance (MMdk): | ||||||||
Beginning of period | 37.6 | 44.1 | ||||||
| Net withdrawal | (10.3) | (22.0) | ||||||
End of period | 27.3 | 22.1 | ||||||
The pipeline business reported net income of $15.3 million in the first quarter of 2026, compared to $17.2 million for the same period in 2025. The earnings decrease was driven by lower interruptible natural gas storage withdrawals. Higher operation and maintenance expense primarily attributable to higher materials and payroll-related costs also contributed, as well as higher Montana property tax accruals. The decrease was partially offset by continued strong customer demand for short-term natural gas transportation contracts, as well as impacts from a growth project placed in service in 2025 and a contracted volume increase associated with a previously constructed growth project.
10
Other | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | Variance | |||||||||
| (In millions) | |||||||||||
Operating revenues | $ | .2 | $ | .2 | — | % | |||||
Operating expenses: | |||||||||||
Operation and maintenance | .5 | .1 | 400.0 | % | |||||||
Total operating expenses | .5 | .1 | 400.0 | % | |||||||
| Operating income (loss) | (.3) | .1 | (400.0) | % | |||||||
| Other income | 1.1 | 1.4 | (21.4) | % | |||||||
| Interest expense | 1.4 | 1.0 | 40.0 | % | |||||||
| Income (loss) before income taxes | (.6) | .5 | (220.0) | % | |||||||
| Income tax benefit | (7.5) | (5.1) | 47.1 | % | |||||||
Income from continuing operations | 6.9 | 5.6 | 23.2 | % | |||||||
| Discontinued operations, net of tax | (.1) | (.5) | (80.0) | % | |||||||
| Net income | $ | 6.8 | $ | 5.1 | 33.3 | % | |||||
For the first quarter of 2026 Other reported net income of $6.8 million compared to net income of $5.1 million for the same period in 2025. The increase was primarily due to income tax adjustments related to the company's annualized estimated tax rate. Partially offsetting the increase was higher operation and maintenance expense.
Other includes the activities of the captive insurer which insures various types of risks of the company's subsidiaries. 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 | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| (In millions, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Book value per common share | $ | 13.89 | $ | 13.42 | ||||
| Market price per common share | $ | 20.72 | $ | 16.91 | ||||
| Market value as a percent of book value | 149.2 | % | 126.0 | % | ||||
| Total assets | $ | 7,684 | $ | 6,961 | ||||
| Total equity | $ | 2,904 | $ | 2,743 | ||||
| Total debt | $ | 2,596 | $ | 2,194 | ||||
| Capitalization ratios: | ||||||||
| Total equity | 52.8 | % | 55.6 | % | ||||
| Total debt | 47.2 | % | 44.4 | % | ||||
| 100.0 | % | 100.0 | % | |||||
11
FAQ
How did MDU (MDU) perform financially in the first quarter of 2026?
MDU generated net income of $80.8 million in the first quarter of 2026, slightly below $82.0 million a year earlier. Diluted earnings per share were $0.39 compared with $0.40, on operating revenues of $606.0 million versus $674.8 million in first quarter 2025.
What 2026 earnings guidance did MDU (MDU) provide in this update?
MDU reaffirmed 2026 earnings per share guidance in a range of $0.93 to $1.00. This outlook assumes normal weather and operating conditions, 1%–2% annual utility customer growth, execution of approved capital and rate plans, and continued progress on its debt and equity financing programs.
What is the proposed Bakken East Pipeline Project described by MDU (MDU)?
The proposed Bakken East Pipeline Project attracted about 1.4 billion cubic feet per day of binding open season interest. MDU now estimates total capital investment of $2.7 billion to $3.2 billion, incremental to a $3.1 billion 2026–2030 capital plan, with a final investment decision still pending.
How are MDU’s electric and natural gas distribution segments performing?
In first quarter 2026, the electric segment earned $14.5 million and natural gas distribution earned $44.2 million. Both segments faced lower volumes from warmer weather, but rate mechanisms, weather normalization and recent investments like Badger Wind Farm helped largely offset the earnings impact.
What did MDU (MDU) report about its pipeline segment results?
The pipeline segment reported net income of $15.3 million in first quarter 2026, down from $17.2 million a year earlier. Results were affected by lower interruptible storage withdrawals, higher operation and maintenance costs, and higher Montana property tax accruals, partly offset by strong short-term transportation demand.
What equity financing actions and plans did MDU (MDU) highlight?
MDU settled part of a December 2025 follow-on offering on March 13, 2026, issuing 4.3 million new shares for $81.3 million of proceeds. The company expects to issue $150–$175 million of equity in 2026 and $100–$125 million in 2027 to support growth capital spending.