MDU Resources Group Q2 Earnings Call Highlights

MDU Resources Group NYSE: MDU reported second-quarter 2026 earnings of $21.3 million, or $0.10 per share, up from $13.7 million, or $0.07 per share, a year earlier, as new utility rates, customer growth, renewable investments and higher retail sales volumes supported results. For the first six months of 2026, the company earned $102.1 million, or $0.49 per share, compared with $95.7 million, or $0.47 per share, in the prior-year period.

President and Chief Executive Officer Nicole Kivisto said the company’s quarter reflected continued execution across its regulated utility and pipeline operations. She also highlighted progress on the proposed Bakken East Pipeline Project, data center electric-service agreements and regulatory activity across the company’s service territories.

MDU said it has executed precedent agreements with all customers that submitted binding open-season interest for the Bakken East Pipeline Project. The agreements total nearly 1.2 billion cubic feet per day of transportation capacity. A negotiated option could raise contracted volumes to nearly all of the original binding open-season interest, according to Kivisto. The company continues to design Bakken East for 1.4 billion cubic feet per day of capacity. Project design is being finalized based on confirmed customer volumes and delivery locations, with a final investment decision expected before the company files an application under Section 7(c) with the Federal Energy Regulatory Commission. The FERC filing is now anticipated in the fourth quarter of 2026, later than a previously contemplated third-quarter schedule as precedent-agreement negotiations took longer than expected. The project’s planned in-service dates remain late 2029 for phase one and late 2030 for phase two. MDU estimates the project could cost between $2.7 billion and $3.2 billion, an amount that would be incremental to its existing capital program. Chief Financial Officer Jason Vollmer said the company is considering financing, partnership and other commercial alternatives, and believes there is “good appetite” for assets of this type. Vollmer said the company expects to provide more detail on the capital implications once it reaches a final investment decision. MDU typically updates its capital plan in late November, following its third-quarter board meeting. While the pipeline is being designed for current demand, Vollmer said it could potentially be expanded later if additional demand emerges. Such an expansion could require additional capital, including for compression.

MDU entered into an electric service agreement with Ap...