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Consolidated net income of $14.0 million, compared with $18.4 million in the same quarter
last yearEarnings per share of $0.07, compared with $0.09 in the third quarter of 2025Adjusted earnings per share of $0.08, compared with $0.09 in the third quarter of 20252026 guidance reaffirmed; earnings per share in the range of $0.93 to $1.00Positive final investment decision reached on Bakken East Pipeline, /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 quarterBadger Wind Farm contributed $3.2 million in earnings for the quarterRetail 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 revenueRetail 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 projectCustomer growth of 1.5% year over yearThe 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 injectionsHigher demand revenue from short-term contractsIncreased demand revenue associated with the Minot Expansion and Line Section 22 Expansion projectsThe 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 [email protected]. 

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 %

SOURCE MDU Resources Group, Inc.

Shares of MDU Resources Group, Inc. (NYSE:MDU – Get Free Report) have earned an average rating of “Hold” from the seven ratings firms that are covering the stock, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $23.40.

Several equities research analysts have weighed in on the stock. JPMorgan Chase & Co. upgraded shares of MDU Resources Group from a “neutral” rating to an “overweight” rating and set a $27.00 price objective for the company in a research report on Thursday, August 6th. Wells Fargo & Company began coverage on shares of MDU Resources Group in a report on Monday, July 13th. They issued an “overweight” rating and a $25.00 price target for the company. Finally, Weiss Ratings lowered shares of MDU Resources Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, August 28th.

Get Our Latest Stock Report on MDU

NYSE MDU opened at $18.68 on Wednesday. The firm has a 50-day simple moving average of $19.81 and a 200 day simple moving average of $20.84. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.95 and a current ratio of 0.99. MDU Resources Group has a twelve month low of $17.43 and a twelve month high of $22.98. The stock has a market cap of $3.82 billion, a PE ratio of 19.66, a PEG ratio of 3.42 and a beta of 0.67. MDU Resources Group (NYSE:MDU – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The utilities provider reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.01. MDU Resources Group had a net margin of 10.75% and a return on equity of 6.89%. The firm had revenue of $375.30 million for the quarter, compared to analyst estimates of $396.56 million. During the same quarter in the previous year, the firm posted $0.07 EPS. The business’s revenue for the quarter was up 6.8% on a year-over-year basis. MDU Resources Group has set its FY 2026 guidance at 0.930-1.000 EPS. On average, research analysts forecast that MDU Resources Group will post 0.98 EPS for the current year.

MDU Resources Group Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a $0.1450 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This is a positive change from MDU Resources Group’s previous quarterly dividend of $0.14. This represents a $0.58 annualized dividend and a dividend yield of 3.1%. MDU Resources Group’s dividend payout ratio (DPR) is currently 61.05%.

Institutional Inflows and Outflows Hedge funds have recently added to or reduced their stakes in the company. Trust Co. of Vermont bought a new position in MDU Resources Group in the 2nd quarter valued at approximately $39,000. Allworth Financial LP bought a new stake in shares of MDU Resources Group during the second quarter worth $43,000. Rockefeller Capital Management L.P. grew its stake in shares of MDU Resources Group by 40.4% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,101 shares of the utilities provider’s stock worth $41,000 after buying an additional 605 shares during the last quarter. Global Retirement Partners LLC acquired a new position in shares of MDU Resources Group during the second quarter worth $55,000. Finally, Global Assets Advisory LLC bought a new position in shares of MDU Resources Group in the 1st quarter valued at $56,000. 71.44% of the stock is owned by institutional investors.

MDU Resources Group Company Profile (Get Free Report)

MDU Resources Group, Inc is a regulated utility holding company headquartered in Bismarck, North Dakota. Through its utility subsidiaries, the company generates, transmits and distributes electricity and provides natural gas distribution and related services to residential, commercial, industrial and agricultural customers.

MDU’s principal electric utility, Montana-Dakota Utilities Co, serves customers in parts of North Dakota, South Dakota, Montana and Wyoming. Its natural gas operations include Montana-Dakota Utilities, Great Plains Natural Gas Co, Cascade Natural Gas Corp.

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, /PRNewswire/ -- The board of directors of MDU Resources Group, Inc. (NYSE: MDU) has increased the quarterly dividend on the company's common stock to 14.5 cents per share, for an annualized dividend of 56 cents per share. This represents an increase of approximately 3.6% over the previous quarterly dividend of 14 cents per share.

The board also revised the company's long-term dividend payout ratio target to 55% to 65% of earnings, compared with the previous target of 60% to 70%. The revised range is intended to provide MDU Resources with greater flexibility to fund its capital investment program, reduce future equity needs and support the company's long-term growth, while continuing to provide a competitive return to stockholders.

"MDU Resources is making significant investments in our utility and pipeline operations to meet growing customer demand and continue providing safe, reliable and affordable essential services," said Nicole Kivisto, president and CEO of MDU Resources. "The revised payout ratio target supports a balanced approach to funding those investments, while still returning meaningful value to our stockholders. Our increased dividend reflects the board's confidence in the company's long-term strategy and financial strength."

MDU Resources has paid uninterrupted dividends for more than eight decades. The board regularly evaluates the company's dividend in light of earnings, capital requirements, financial condition and other factors to support long-term value creation.

The dividend is payable on Oct. 1, 2026, to stockholders of record as of Sept. 10, 2026.

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 [email protected].

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

SOURCE MDU Resources Group, Inc.

Consolidated net income of $21.3 million, up 55.5% from the same quarter last year Earnings per share of $0.10, up 42.9% year-over-year Continued progress on proposed Bakken East Pipeline Project 2026 guidance reaffirmed; earnings per share in the range of $0.93 to $1.00 , /PRNewswire/ -- MDU Resources Group, Inc. (NYSE: MDU) today announced its financial results for the second quarter of 2026, highlighting continued execution across its regulated utility and pipeline businesses, progress on key growth initiatives and increasing infrastructure opportunities driven by customer growth and emerging demand trends.

"We delivered solid second quarter results while continuing to position the company for long-term growth," said Nicole A. Kivisto, president and CEO of MDU Resources. "Our utility businesses benefited from new rates, customer growth and investments such as Badger Wind Farm, while our pipeline business continued advancing strategic projects that have the potential to create meaningful value over time. We are especially encouraged by the continued advancement of our proposed Bakken East Pipeline Project. We believe our progress with customer commitments demonstrates the project's strategic value. We also remain encouraged by development activity across our service territory, including data center opportunities and growing infrastructure demand."

The following summarizes the company's results for the three and six months ended June 30:

Three Months Ended June 30:

Six Months Ended June 30:

2026

2025

2026

2025

(In millions, except per share amounts)

Net income

$         21.3

$         13.7

$        102.1

$         95.7

Earnings per share, diluted

$           .10

$           .07

$            .49

$           .47

"Our employees continue to demonstrate a commitment to safety, reliability, operational excellence and customer service," Kivisto added. "Their efforts are helping us navigate a dynamic operating environment while advancing important infrastructure investments that support customers and communities.

Proposed Bakken East Pipeline Project Update
The proposed Bakken East Pipeline Project continues to advance through engineering, environmental review and pre-filing activities. With recently signed precedent agreements, we now have executed agreements with all customers that submitted binding open season interest totaling nearly 1.2 billion cubic feet per day of firm natural gas transportation capacity, with a negotiated option in place that may increase the contracted volumes to nearly all of the original interest from our binding open season. The company continues to design the project for 1.4 billion cubic feet per day of transportation capacity. Overall project design is being finalized based on confirmed customer volumes and delivery locations before a final investment decision is made, which is expected ahead of a FERC Section 7(c) application.

This application is now anticipated to be filed in the fourth quarter of 2026. The proposed in-service dates of Phase One in late 2029 and Phase Two in late 2030, remain. As development progresses, the company continues to evaluate all financing options to support the projected $2.7 billion to $3.2 billion project.

Electric Utility Segment
Strong earnings growth driven by Badger Wind recovery, implementation of new and interim rates and increased volumes

Badger Wind Farm contributed $3.3 million in earnings for the quarter Montana interim rates and new Wyoming electric rates contributed positively to results Retail sales volumes increased 8.2% The electric segment earned $14.7 million in the second quarter of 2026, compared with $10.4 million in the second quarter of 2025. In addition to Badger Wind Farm, results benefited from implemented rate increases and higher retail sales volumes. Data center demand continued to contribute to electric retail sales volume growth.

Approach to Data Centers
Our approach to serving data center customers, is grounded in protecting existing customers and ensuring that growth creates value for the communities we serve. Data center customers are responsible for paying the costs associated with connecting to and being served by the electric system, including infrastructure and energy-related expenses. Through careful planning, regulatory oversight and cost-allocation mechanisms, we ensure that existing customers are not subsidizing the costs of serving these new customers. At the same time, the additional revenue generated from serving data center customers can help support the electric system and contribute to reducing certain fixed costs by allocating them across a broader customer base. This current approach creates benefits for all customers.

Regulatory Update:

North Dakota: Filed an electric general rate case on June 30, 2026, requesting an annual revenue increase of approximately $34.5 million. Interim rates of approximately $26.3 million have been requested beginning Sept. 1, 2026. The filing reflects investments in electric infrastructure, normal depreciation of those assets, reliability improvements, system safety and higher operation and maintenance expense. Entered into an electric service agreement (ESA) in June with Applied Digital Corp. to serve Polaris Forge 3, an AI Factory near Center, North Dakota. At full capacity, the campus would require 430 megawatts of electricity. Approval of the ESA and other regulatory filings by the North Dakota Public Service Commission is pending. In June, the North Dakota Public Service Commission approved the route permit for the Jamestown-to-Ellendale Transmission Project (JETx). The project is expected to enhance reliability, improve resiliency, reduce transmission congestion and support access to lower-cost energy across the region. Montana: Interim electric rates reflecting an annual increase of approximately $10.4 million remain in effect, subject to refund. A settlement agreement of $10.0 million has been filed and is pending approval by the Montana Public Service Commission. Wyoming: General rate case settlement was approved for an annual increase of $5.8 million with rates effective April 1, 2026; reflecting recovery of infrastructure investments as well as associated operation and maintenance expense. Natural Gas Distribution Segment
New rates and higher retail sales volumes support improved year-over-year results, offset by interest expense increases

Positive contributions from new rates in Idaho, Washington, Montana and Wyoming Retail sales volumes increased 6.7% Continued customer growth of 1.6% year-over-year Increased interest expense due to higher long-term debt balances The natural gas distribution segment reported a seasonal second quarter loss of $3.9 million, compared with a seasonal loss of $7.4 million in the prior-year period. Results benefited from new rates across multiple jurisdictions, increased retail sales volumes and continued customer growth. The higher interest expense partially offset the gains.

Regulatory Update:

Washington: Filed a multiyear natural gas rate case with the Washington Utilities and Transportation Commission requesting an annual revenue increase of $25.1 million in year one, and $18.1 million in year two. The filing reflects investments in natural gas infrastructure, reliability improvements, system safety and normal depreciation of those assets. The request is pending a decision by the commission. Oregon: A multi-party settlement agreement of $12.2 million has been filed and is pending approval by the Oregon Public Utility Commission. Minnesota: General rate case filing is anticipated later this year. Pipeline Segment
Strategic growth initiatives continue to advance

Continued development of the proposed Bakken East Pipeline Project Progress on additional growth projects Strong transportation demand across the system The pipeline segment earned approximately $14.4 million in the second quarter of 2026, compared with $15.4 million in the second quarter of 2025. Results were driven by lower other income and higher depreciation expense. These impacts were partially offset by increased transportation revenue, primarily due to customer demand for short-term natural gas transportation contracts.

Strategic Project Updates:

Proposed Bakken East Pipeline Project: Development activities continued during the quarter as the company advanced customer agreements, engineering work and regulatory activities. We have executed precedent agreements totaling nearly 1.2 billion cubic feet per day, with a negotiated option in place for nearly all of the original interest from our binding open season. The company continues engineering, environmental, cultural resource and stakeholder engagement activities while evaluating financing and partnership opportunities. Development activities remain focused on creating long-term value while advancing a strategically significant infrastructure project for North Dakota and the broader region. Line Section 32 Expansion Project: The project remains on schedule following the filing of a FERC 7(c) application in March 2026. The filing represents an important regulatory milestone as the project advances toward its targeted late-2028 in-service date, subject to regulatory approvals. Minot Industrial Project: Development activities for this potential project continue under agreements currently extended through late 2026. The 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. Regulatory Update:

FERC rate case filed on May 29, 2026, requesting updated transportation and storage services rates. 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 second 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 [email protected]. 

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

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions, except per share amounts)

(Unaudited)

Operating revenues

$    375.2

$    351.2

$    981.2

$  1,026.0

Operating expenses:

Purchased natural gas sold

93.5

96.0

332.9

413.2

Electric fuel and purchased power

38.6

34.9

84.7

78.6

Operation and maintenance

114.1

112.8

228.9

223.9

Depreciation and amortization

55.2

51.8

109.4

103.1

Taxes, other than income

25.9

25.3

61.7

64.0

Total operating expenses

327.3

320.8

817.6

882.8

Operating income

47.9

30.4

163.6

143.2

Other income

6.2

9.9

8.8

14.9

Interest expense

31.5

25.4

64.2

52.2

Income before income taxes

22.6

14.9

108.2

105.9

Income tax expense

3.3

.8

8.0

9.3

Income from continuing operations

19.3

14.1

100.2

96.6

Discontinued operations, net of tax

2.0

(.4)

1.9

(.9)

Net income

$      21.3

$      13.7

$    102.1

$      95.7

Earnings per share – basic:

Income from continuing operations

$       .09

$       .07

$       .48

$       .47

Discontinued operations, net of tax

.01

—

.01

—

Earnings per share – basic

$       .10

$       .07

$       .49

$       .47

Earnings per share – diluted:

Income from continuing operations

$       .09

$       .07

$       .48

$       .47

Discontinued operations, net of tax

.01

—

.01

—

Earnings per share – diluted

$       .10

$       .07

$       .49

$       .47

Weighted average common shares outstanding – basic

209.6

204.3

207.5

204.2

Weighted average common shares outstanding – diluted

211.7

205.2

209.3

205.1

Selected Cash Flows Information

Six Months Ended

June 30,

2026

2025

(In millions)

Net cash provided by operating activities

$    265.3

$    334.9

Net cash used in investing activities

(196.1)

(174.4)

Net cash used in financing activities

(51.1)

(168.6)

Increase (decrease) in cash, cash equivalents and restricted cash

18.1

(8.1)

Cash, cash equivalents and restricted cash - beginning of year

28.2

66.9

Cash, cash equivalents and restricted cash - end of period

$      46.3

$      58.8

Capital Expenditures

Business Line

2026
Estimated

2027
Estimated

2028
Estimated

2029
Estimated

2030
Estimated

2026-2030
Total
Estimated

(In millions)

Electric

$       129

$       309

$       250

$       184

$       210

$    1,082

Natural gas distribution

340

295

240

254

223

1,352

Pipeline

60

70

181

282

50

643

Total capital expenditures1

$       529

$       674

$       671

$       720

$       483

$    3,077

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.

Electric

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions)

Operating revenues1,2

$    116.1

$      98.1

$    237.3

$    210.5

Operating expenses:

Electric fuel and purchased power1

38.6

34.9

84.7

78.6

Operation and maintenance

31.2

29.9

60.1

58.5

Depreciation and amortization

20.3

17.4

39.9

34.6

Taxes, other than income

5.4

4.7

10.9

9.5

Total operating expenses

95.5

86.9

195.6

181.2

Operating income

20.6

11.2

41.7

29.3

Other income

1.9

2.7

2.3

3.7

Interest expense

11.2

7.6

23.1

15.5

Income before income taxes

11.3

6.3

20.9

17.5

Income tax benefit2

(3.4)

(4.1)

(8.3)

(7.9)

Net income

$      14.7

$      10.4

$      29.2

$      25.4

Operating Statistics

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Revenues (millions)1,2

Retail sales:

Residential

$      35.3

$      28.3

$      74.4

$      66.5

Commercial3

48.8

41.2

95.7

86.4

Industrial

11.0

9.1

20.9

17.9

Other

2.0

1.8

4.0

3.5

97.1

80.4

195.0

174.3

Other

19.0

17.7

42.3

36.2

$    116.1

$      98.1

$    237.3

$    210.5

Volumes (million kWh)

Retail sales:

Residential

253.4

235.8

585.4

606.5

Commercial3

732.1

672.7

1,474.0

1,396.6

Industrial

128.7

120.0

249.4

236.7

Other

20.1

20.1

39.3

40.3

1,134.3

1,048.6

2,348.1

2,280.1

Average cost of electric fuel and purchased power per kWh

$      .026

$      .024

$      .027

$      .025

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 $14.7 million in the second quarter of 2026, compared to $10.4 million for the same period in 2025. This increase was largely the result of higher retail sales revenue, primarily from recovery mechanisms associated with renewable investments including Badger Wind Farm. Interim rates in Montana and new rates in Wyoming, along with higher retail sales volumes across all major customer classes, further drove the increase. The increase was partially offset by higher interest expense associated with debt issuances for recent capital investments, including Badger Wind Farm, as well as higher depreciation expense and operation and maintenance expense, primarily related to Badger Wind Farm.

Natural Gas Distribution

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions)

Operating revenues1,2,3

$    212.6

$    206.9

$    675.1

$    746.2

Operating expenses:

Purchased natural gas sold1

103.4

105.8

377.2

456.3

Operation and maintenance2

60.8

60.5

126.0

124.1

Depreciation and amortization

26.6

26.5

53.0

52.6

Taxes, other than income3

16.8

17.0

43.3

47.6

Total operating expenses

207.6

209.8

599.5

680.6

Operating income (loss)

5.0

(2.9)

75.6

65.6

Other income

3.8

5.1

6.1

8.4

Interest expense

15.9

13.8

32.2

28.6

Income (loss) before income taxes

(7.1)

(11.6)

49.5

45.4

Income tax (benefit) expense

(3.2)

(4.2)

9.2

8.1

Net income (loss)

$      (3.9)

$      (7.4)

$      40.3

$      37.3

Operating Statistics

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Revenues (millions)1,2,3

Retail Sales:

Residential

$    111.1

$    106.1

$    370.6

$    397.7

Commercial

63.5

63.4

213.7

253.0

Industrial

8.7

9.4

22.1

25.1

183.3

178.9

606.4

675.8

Transportation and other

29.3

28.0

68.7

70.4

$    212.6

$    206.9

$    675.1

$    746.2

Volumes (MMdk)

Retail sales:

Residential

9.1

8.5

35.6

40.3

Commercial

7.4

7.0

26.0

28.9

Industrial

1.1

1.0

2.6

2.7

17.6

16.5

64.2

71.9

Transportation sales:

Commercial

.3

.3

.9

1.1

Industrial

32.4

38.1

71.3

86.5

32.7

38.4

72.2

87.6

Total throughput

50.3

54.9

136.4

159.5

Average cost of natural gas per dk

$      5.88

$      6.42

$      5.88

$      6.35

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 $3.9 million in the second quarter of 2026, compared to a seasonal loss of $7.4 million for the same period in 2025. The lower seasonal loss was primarily driven by new rates in Idaho, Washington, Montana and Wyoming, as well as higher retail sales volumes across all customer classes. These impacts were partially offset by higher interest expense resulting from higher long-term debt balances.

Pipeline

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions)

Operating revenues

$      56.7

$      56.3

$    113.8

$    113.0

Operating expenses:

Operation and maintenance

22.4

22.4

43.2

41.7

Depreciation and amortization

8.3

7.9

16.5

15.9

Taxes, other than income

3.7

3.6

7.5

6.9

Total operating expenses

34.4

33.9

67.2

64.5

Operating income

22.3

22.4

46.6

48.5

Other income

.3

1.7

—

2.1

Interest expense

4.2

4.3

8.2

8.5

Income before income taxes

18.4

19.8

38.4

42.1

Income tax expense

4.0

4.4

8.7

9.5

Net income

$      14.4

$      15.4

$      29.7

$      32.6

Operating Statistics

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Transportation volumes (MMdk)

150.4

151.4

293.6

294.9

Customer natural gas storage balance (MMdk):

Beginning of period

27.3

22.1

37.6

44.1

Net injection (withdrawal)

14.2

12.5

3.9

(9.5)

End of period

41.5

34.6

41.5

34.6

The pipeline business reported net income of $14.4 million in the second quarter of 2026, compared to $15.4 million for the same period in 2025. The decrease was driven by lower other income and higher depreciation and amortization expense from a growth project placed in service. These impacts were partially offset by continued customer demand for short-term natural gas transportation contracts and interruptible storage services, as well as contributions from previously constructed growth projects, including a contracted volume increase.

Other

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

(In millions)

Operating revenues

$         .2

$         .1

$         .4

$         .3

Operating expenses:

Operation and maintenance

.2

.4

.7

.5

Total operating expenses

.2

.4

.7

.5

Operating loss

—

(.3)

(.3)

(.2)

Other income

.6

1.6

1.7

3.0

Interest expense

.6

.9

2.0

1.9

Income (loss) before income taxes

—

.4

(.6)

.9

Income tax (benefit) expense

5.9

4.7

(1.6)

(0.4)

Income (loss) from continuing operations

(5.9)

(4.3)

1.0

1.3

Discontinued operations, net of tax

2.0

(.4)

1.9

(.9)

Net income (loss)

$      (3.9)

$      (4.7)

$       2.9

$         .4

For the second quarter of 2026 Other reported a net loss of $3.9 million compared to a net loss of $4.7 million for the same period in 2025. The increase was primarily due to income from discontinued operations associated with a $1.5 million tax benefit related to an election to change the tax method for certain strategic initiative costs. Other also reflects income tax adjustments related to the company's annualized estimated tax rate.

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

June 30,

2026

2025

(In millions, except per share amounts)

(Unaudited)

Book value per common share

$          13.91

$          13.37

Market price per common share

$          21.21

$          16.67

Market value as a percent of book value

152.5 %

124.7 %

Total assets

$          7,712

$          6,946

Total equity

$          2,927

$          2,732

Total debt

$          2,577

$          2,182

Capitalization ratios:

Total equity

53.2 %

55.6 %

Total debt

46.8 %

44.4 %

100.0 %

100.0 %

SOURCE MDU Resources Group, Inc.