MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. The company's Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming, as well as operates 3,500 miles of transmission lines and 4,800 miles of distribution lines. Its Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and offers supply-related value-added services. The company's Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. Its Construction Materials and Contracting segment mines, processes, and sells construction aggregates; produces and sells asphalt mix; and supplies ready-mixed concrete. This segment is also involved in the sale of cement, finished concrete products, and other building materials and related contracting services. The company's Construction Services segment designs, constructs, and maintains electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping and services; overhead and underground electrical, gas, and communication infrastructure; and manufactures and distributes transmission lines construction equipment. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. The company was founded in 1924 and is headquartered in Bismarck, North Dakota.
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Here are 1-3 brief analogies to describe MDU Resources:
Imagine a company similar to Duke Energy, but which also operates a large construction materials and services business.
Think of it as a regional Vulcan Materials, but with a significant regulated electric and natural gas utility component.
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- Electric and Natural Gas Utilities: Provides regulated electric and natural gas utility services to customers across several states.
- Pipeline and Midstream: Offers natural gas transportation, storage, and gathering and processing services through its extensive pipeline network.
- Construction Services: Delivers a range of electrical, mechanical, and civil construction services, primarily for industrial and commercial projects.
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MDU Resources (MDU) operates diversified energy businesses, primarily in regulated energy delivery, regulated renewable energy, and pipeline and energy services. Its largest segment, Regulated Energy Delivery, provides electric and natural gas utility services to a broad base of residential, commercial, and industrial customers across several states. While other segments, like Regulated Renewable Energy and Pipeline and Energy Services, primarily serve other companies, no single corporate customer is publicly disclosed as accounting for a significant portion of MDU's consolidated revenue (typically above 10%). Therefore, describing its customer base by categories is the most appropriate way to identify its major customers.
Major Customer Categories:
- Residential Customers: Individuals and households that receive electric and natural gas services from MDU's regulated utility companies (Montana-Dakota Utilities Co., Cascade Natural Gas Corporation, and Intermountain Gas Company) for their homes.
- Commercial Customers: Businesses, institutions, and government entities (e.g., retail stores, offices, schools, hospitals) that utilize MDU's electric and natural gas services for their operations. This category also includes smaller businesses served by MDU's pipeline and energy services for natural gas transportation and other related energy services.
- Industrial Customers: Large manufacturing plants, industrial facilities, and other high-volume consumers of electricity and natural gas. This category also encompasses customers utilizing MDU's pipeline and energy services for natural gas transportation, gathering, processing, and storage. Additionally, it includes other utilities or grid operators who purchase power from MDU's regulated renewable energy facilities under long-term agreements.
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| Supplier Company Name |
Symbol (if public) |
| North American Coal Corporation (subsidiary of NACCO Industries, Inc.) |
NC |
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Nicole A. Kivisto President and Chief Executive Officer
Ms. Kivisto joined MDU Resources as a financial analyst in 1995 and advanced through various roles, including controller, vice president, and chief accounting officer. She was appointed President and Chief Executive Officer of MDU Resources Group, Inc. on January 6, 2024. Prior to her current role, she served as the Chief Executive Officer and President of Montana-Dakota Utilities Co., Cascade Natural Gas Corporation, and Intermountain Gas Company from 2015 to 2024.
Jason L. Vollmer Vice President, Chief Financial Officer and Treasurer
Mr. Vollmer became the Chief Financial Officer of MDU Resources in 2017. He joined the company in 2005 as a financial analyst and has held several positions, including manager of treasury, cash and risk management, then treasurer and director of cash, risk management and general accounting, and vice president, chief accounting officer and treasurer. Before joining MDU Resources, Mr. Vollmer worked at the North Dakota Office of the State Auditor.
Stephanie A. Barth Vice President, Chief Accounting Officer and Controller
Ms. Barth was hired in 1996 as an accountant at WBI Energy Inc., an MDU Resources subsidiary. She progressed through a number of positions of increasing responsibility at WBI Energy, and in 2015, she was named vice president, chief accounting officer, and treasurer at the subsidiary. In 2016, Ms. Barth was also named controller at MDU Resources. Prior to joining MDU Resources, she worked at Eide Bailly.
Anne M. Jones Vice President, Human Resources
Ms. Jones serves as the Vice President of Human Resources for MDU Resources. Her background focuses on human resources leadership within the company.
Garret Senger Chief Utilities Officer
Mr. Senger is the Chief Utilities Officer for MDU Resources Group, Inc., Montana-Dakota Utilities Co., Cascade Natural Gas Corporation, and Intermountain Gas Company.
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The key risks to MDU Resources (symbol: MDU) primarily stem from its strategic restructuring, environmental and regulatory compliance, and financial performance challenges.
- Impact of Spin-offs and Business Restructuring: MDU Resources has undergone significant restructuring, including the spin-off of Knife River, which led S&P Global to place the company's ratings on CreditWatch negative. This was primarily due to the loss of a significant source of cash flow and business diversity, which could affect MDU Resources' financial risk profile. The company also plans to spin off its MDU Construction Services Group by the end of 2024. These ongoing and planned divestitures introduce uncertainty regarding the remaining company's financial stability, operational focus, and overall market valuation.
- Environmental Regulations and Climate-Related Risks: As a utility and energy company, MDU Resources faces substantial risks related to evolving environmental regulations and climate change initiatives. These include existing and proposed emissions reduction plans from the Environmental Protection Agency (EPA) and the costs associated with the retirement of coal facilities. Compliance with these regulations can lead to increased capital and operational expenditures, impacting the company's financial performance and strategic planning.
- Financial Performance and Growth Challenges: MDU Resources has experienced a decline in profits, with earnings falling by 41% in the last year and 52% over the past three years. Analyst forecasts indicate that the company's growth over the next three years is expected to be 6.0% annually, which is noticeably lower than the wider market's projected 10% growth. This slower earnings growth and past performance could make it difficult for the company to maintain its share price and investor confidence.
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The widespread adoption of distributed energy resources, such as rooftop solar combined with battery storage systems, threatens MDU Resources' regulated energy delivery segment. As customers increasingly generate and store their own electricity, their reliance on the traditional utility grid diminishes, directly impacting utility revenues and potentially challenging the long-term viability of the centralized utility business model.
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MDU Resources Group, Inc. (MDU) operates in several key segments, primarily within regulated energy delivery and construction materials and services. The addressable markets for its main products and services in the United States are sized as follows:
- Natural Gas Distribution: The U.S. natural gas distribution market was valued at approximately USD 170.0 billion in 2024 and is projected to reach USD 186.0 billion by 2032, growing at a compound annual growth rate (CAGR) of 1.0% from 2025 to 2032. Another source indicates the U.S. natural gas distribution market size was USD 174.7 billion in 2024 and is forecast to be USD 222.5 billion in 2025.
- Electric Utility (Transmission and Distribution): The U.S. electricity transmission and distribution market size was valued at USD 82.96 billion in 2022.
- Construction Materials: The U.S. construction materials market was valued at USD 145.0 billion in 2024 and is expected to grow to USD 196.1 billion by 2032, with a CAGR of 4.0% from 2025 to 2032. In 2022, the U.S. construction materials market size was worth USD 146.8 billion.
- Construction Services: The broader U.S. construction market, which encompasses construction services, was valued at USD 1.77 trillion in 2024 and is projected to reach USD 2.12 trillion by 2025. This market is expected to continue growing to USD 2.52 trillion by 2030, at a CAGR of 2.6% from 2025 to 2030. Other reports indicate the U.S. construction industry market size was approximately $2.1 trillion in 2024 and is projected to be $3.7 trillion in 2025. The global construction services market is anticipated to be valued at USD 1258.5 billion in 2024, with North America accounting for approximately 23% of this market.
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MDU Resources (MDU) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:
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Customer Growth in Electric and Natural Gas Utilities: MDU anticipates a continued annual customer growth rate of 1-2% in its electric and natural gas segments through 2026. This consistent expansion of its customer base is a fundamental driver for increased revenue in its regulated energy delivery business.
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Strategic Capital Investments and Infrastructure Upgrades: The company plans substantial regulated capital expenditures of approximately $3.1 billion from 2025 to 2029. These investments are aimed at upgrading and expanding MDU’s electric and natural gas infrastructure, which will enhance service reliability and support its growing customer base, thereby contributing to revenue growth.
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Pipeline Organic Growth Projects and Increased Transportation Volumes: MDU's pipeline business has already seen record earnings and transportation volumes, fueled by organic growth projects like the Wahpeton Expansion Project and Minot Expansion Project, which were placed into service in late 2023 and throughout 2024. The company is actively evaluating additional expansion opportunities in line with customer and market needs, along with benefiting from new transportation and storage service rates.
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Rate Relief and Recovery Initiatives: Higher retail sales revenue, particularly from successful rate relief efforts in various jurisdictions such as North Dakota, Idaho, and South Dakota, has positively impacted the utility segment. MDU’s focus on the successful execution of approved capital investment and rate recovery plans is expected to continue supporting revenue growth.
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Growth in Data Center Demand: The Electric Utility segment is experiencing significant growth in retail sales volumes due to increasing demand from data centers. MDU has secured electric service agreements for 580 megawatts (MW) of data center load, with a considerable portion expected to come online in 2026 and 2027, providing a substantial boost to future revenues.
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Share Repurchases
- MDU Resources conducted share repurchases of $125.01 million in the fourth quarter of 2022.
- The company's latest trailing twelve-month (LTM) stock repurchase value is $4.81 million.
- Quarterly share repurchases in 2025 included $4.48 million in Q1 and $30.39 thousand in Q2.
Share Issuance
- MDU Resources Group entered a $400 million stock distribution agreement with Wells Fargo Securities and BofA Securities, allowing for shares to be sold through various methods.
- Due to an expanded capital program, the company anticipates equity issuance in 2026, which is earlier than its previously projected 2027 timeline.
- As of December 31, 2024, there were 2.3 million shares remaining available to grant under stock-based compensation plans.
Inbound Investments
- In August 2022, activist investor firm Corvex Management acquired an approximately 5.0% stake in MDU Resources, expressing plans to consult management on strategic alternatives to increase earnings potential.
Outbound Investments
- MDU Resources acquired PerLectric, an electrical construction company in Fairfax, Virginia, in February 2020 to expand its geographic footprint.
- Knife River Corporation, a former subsidiary of MDU Resources, completed the acquisition of Baker Rock Resources and Oregon Mainline Paving in November 2021, expanding operations in the Pacific Northwest and adding significant aggregate resources.
- MDU Resources subsidiary, Montana-Dakota Utilities Co., acquired a 49% ownership interest in the Badger Wind Farm for an estimated cost of $294 million, representing 122.5 MW of the project's total capacity, with regulatory approval received in September 2025.
Capital Expenditures
- MDU Resources plans to make capital investments totaling $3.1 billion from 2025 through 2029, a 15% increase from the previous 2024-2028 plan.
- These investments will increase in the electric and natural gas distribution segments by 47% compared to 2020-2024, focusing on constructing electric transmission lines, substations, and natural gas delivery infrastructure to support customer growth and modernize infrastructure.
- Capital expenditure for 2025 is projected to be $531 million.
